The Mortgage Process
- Determine how much you can afford: Before you start looking for homes, you should figure out how much you can afford to spend on a mortgage payment each month. Use a mortgage calculator to get an estimate.
- Get pre-approved: Once you have a rough idea of how much you can afford, you should get pre-approved for a mortgage by a lender. This will give you a better idea of how much you can borrow, and you’ll be ready to make an offer on a home when you find one you like.
- Find a home: Once you’re pre-approved, you can start looking for homes within your price range. Work with a real estate agent to find homes that fit your needs and budget.
- Make an offer: When you find a home you like, make an offer on it. Your real estate agent can help you with this process.
- Apply for the mortgage: Once your offer is accepted, you’ll need to formally apply for the mortgage. You’ll need to provide documentation of your income, employment, and credit history.
- Appraisal and inspection: The lender will require an appraisal to make sure the home is worth the amount you’re borrowing, and you’ll likely want to get a home inspection to make sure there are no major issues with the property.
- Underwriting: The lender will review all of your documentation and decide whether to approve your mortgage.
- Closing: If your mortgage is approved, you’ll go to closing, where you’ll sign all of the necessary paperwork and pay any closing costs and fees.
- Funding: Once everything is signed and the funds are transferred, the home is officially yours!
- Repay the mortgage: You’ll need to make regular payments on your mortgage over the term of the loan, which is typically 15 or 30 years.
