7 Steps in the home buying process:

1. What can you afford? Assess Your Financial Readiness

Before embarking on the journey of home buying and securing a mortgage, it’s essential to evaluate your financial situation to ensure you’re ready to purchase a home. Understanding whether you can comfortably manage the new monthly mortgage payment is crucial. Utilizing a home affordability calculator is a smart way to determine your budget and gain clarity on what’s financially attainable.

2. Select Bookend Lending and Obtain Preapproval

Getting preapproved for a mortgage provides insight into how much a lender is willing to lend you based on factors such as your income, credit history, assets, and credit score. This step enhances your appeal to both home sellers and real estate professionals, as you are already prepared for the mortgage application process.

3. Search for Your Ideal Home and Make an Offer

Now it’s time to embark on the exciting journey of finding your dream home. Explore properties that align with your preferences, and don’t hesitate to seek guidance from your real estate agent. Once you’ve discovered the perfect home, it’s time to submit an offer and provide an earnest money deposit to secure your bid.

4.  Complete Your Mortgage Application

Bookend Lending will work with you to gather all your documents and the necessary paperwork. Once you’ve submitted all of the necessary documents to complete your application, you’ll get a loan estimate in a couple of days that will disclose the terms, rates, and fees of your home loan.

5.  Undergo Mortgage Underwriting

The underwriting process involves the lender reviewing your application, and verifying your income, assets, debts, and property details. Once this verification is complete, you’ll receive final approval for your loan application. Typically, borrowers are not actively involved in this stage unless the lender has specific questions or requires additional documents.

6.  Prepare Your Down Payment and Closing Costs

As you approach the final stages, it’s time to address down payments and closing costs. You’ll need to provide the down payment for the property, cover the agreed-upon closing costs, and furnish proof of homeowners insurance. These details can be found in the closing disclosure, which you’ll receive following mortgage underwriting. Being financially prepared is essential to successfully conclude the mortgage process.

7.  Close on Your New Home

The last step is attending the closing day meeting and officially becoming a homeowner. During this meeting, you’ll sign all necessary documents and have the opportunity to ask any questions about the sale or the property itself. Typically conducted in person, this meeting involves a closing attorney or title company. Once all paperwork is signed and exchanged, you’ll receive the keys to your new home, marking the beginning of your homeownership journey.

Woohoo!