Purchase a Home

Purchasing a home is a very exciting time, and being well prepared will help you make better decisions. Take this opportunity to learn more about the home buying mortgage process. Below and throughout our website you will find information that will help you with the mortgage questions you may have. 

Am I really ready to buy?

Buying a home offers many advantages, one of the most significant being that it allows you to build equity (ownership) when you pay your mortgage each month. A common myth is that monthly mortgage payments are more expensive than rent. But, in many cases, mortgage payments can be even less than rent. When considering home ownership for the first time, you need to decide whether buying makes financial and practical sense for you right now. The best time to purchase a house is now because waiting for the best time to do it is not a good strategy. You might never buy and just keep procrastinating so, it is best to talk to one of our loan officers to know what your option are with today. 

How much “house” can I afford? 

The first step toward finding the right home is to quickly compute your purchasing power and determine how much you can afford to pay each month. This saves you time by allowing you to focus on homes in your price range. The three main things we use to calculate how much you can afford is your income , assets and credit analysis to include your credit score. 
 

Some up-front costs include: 

Down payment: Typically ranges from 3-5% of the price of the house. The more you can put down, the greater equity you will have in your home and the lower your monthly payment will be. For down payments less than 20% you may also need to pay mortgage insurance.

Closing Costs: Typically range from 2-6% of the loan amount depending on your area, type of property and loan program.

On-going Costs: Your housing costs can include the following:
 

• Monthly mortgage payment

• Homeowners insurance

• Mortgage Insurance

• If applicable - Flood Insurance

• If applicable - Property taxes

• Utilities

• Maintenance

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The process of buying a home can be a daunting task, especially if you are a first-time home buyer. One of the most significant steps in the home buying process is securing a mortgage. A mortgage is a loan from a bank or lender that is used to purchase a home.

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Here are the steps involved in the mortgage home buying process:

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1. Determine Your Budget: Before you start house hunting, it's essential to know how much you can afford to spend. Your budget will depend on your income, expenses, and debt-to-income ratio.

2. Get Pre-approved: Once you have a budget in mind, the next step is to get pre-approved for a mortgage. Pre-approval involves submitting your financial information to a lender who will assess your credit score, income, and debts. With pre-approval, you'll have a better idea of the maximum amount you can borrow, and you'll be able to make an offer on a home with confidence.

3. Find a Home: With pre-approval in hand, you can start looking for a home within your budget. Work with a real estate agent to find properties that fit your criteria, and make an offer on a property once you find one that meets your needs.

4. Apply for the Mortgage: Once your offer is accepted, you'll need to apply for a mortgage. You'll need to provide your lender with documentation such as your income, employment history, and credit report. The lender will also require an appraisal of the property to ensure that it's worth the amount you're borrowing.

5. Underwriting: After you've submitted your mortgage application, the lender will review your financial information and the property's appraisal. This process is called underwriting, and it's used to determine whether you're eligible for the mortgage.

6. Closing: Once your mortgage is approved, you'll need to attend a closing meeting. During the closing, you'll sign all the necessary paperwork to finalize the sale, including the mortgage agreement, closing disclosure, and other legal documents.

7. Move In: Finally, once you've completed the closing process, it's time to move into your new home. Congratulations, you're now a homeowner!

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In summary, securing a mortgage is a critical step in the home buying process. It's essential to do your research, work with a Parada Mortgage Loan Officer, and get pre-approved before you start looking for a home. With the right preparation and guidance, buying a home can be an exciting and rewarding experience.

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