The Home Loan Process

Whether you’re new to the home buying process, or you’ve purchased a home before, it’s helpful to start by thinking about your budget, interest rates, and what type of home you're looking for.

 

Budgeting for a Home

A new mortgage is a different type of expense that needs to fit easily into, and be managed as part of, your monthly and yearly budget – without creating financial strain. Whether you qualify for a mortgage is determined by your current budget situation. You won’t know what size of a loan you can afford until after you qualify.

 

Renting vs. Buying

Buying a home is a big commitment, but once you’re ready to dive in, it can be one of the most rewarding decisions you will ever make. Benefits of owning a home include building equity, tax advantages, the ability to live your way, not your landlords.

 

Your Interest Rate

One of the biggest concerns for homeowners is their mortgage interest rate. That’s because it directly affects the monthly payments for the life of the loan. We’ll help you determine what will get you the best interest rate.

 
 

 

Prequalification

Prequalification starts the application process. The lender checks your credit, ability to pay, and you learn how big and what type of loan you qualify for.

Benefits of getting prequalified:

  • You’ll know what price range you can afford

  • You’ll be able to make an offer as soon as you find a home you like.

  • You’ll identify potential credit or other problems early.

  • You’ll have more negotiating power because sellers will know you’re ready to buy.

  • If you’re self-employed or work on commission, pre-qualification shows you have financial backing.

  • It gives sellers confidence to work with you if you’re a first-time home-buyer.

  • Best of all, PrimeLending offers pre-qualification at no cost.

 

Making an Offer

Now that you’ve found the perfect home, what’s next? When you’re ready to make an offer and purchase your home, expect some negotiations until you reach a final price the seller is willing to accept. It’s a good idea to work with a real estate professional to conduct the negotiations, be your advocate, and serve as a trusted advisor.

When you extend your offer:

  • Make sure the seller knows you’re pre-qualified, which will make your offer more attractive.

  • Make sure ALL negotiations are in writing and that you receive copies.

  • You’ll need to make an earnest money deposit. Typically 1-2% of purchase price, and varies by state. This deposit shows the seller your offers is serious and made in good faith. It’s given to the escrow company and will be applied to the final purchase price at closing.

 

+ Jumbo Loan

Jumbo loans are any loan amount that exceeds $424,000 in most of the country. There are, however, a few counties in the US where a jumbo is anything over $626,150. These are considered high cost areas. A jumbo loan would typically be needed when the subject property is a luxury property. Fixed-rate and Adjustable Rate options are both available.

+ 2nd Home

If you're looking for a vacation property, this financing option may be right for you.

+ Investment

For those looking to buy property they plan to lease.

+ Fixed-rate Mortgage

The interest stays the same for the duration of the loan. If interest rates lower, your rate will not change.

+ Adjustable Rate Mortgage (ARM)

Can offer a lower interest rate initially, but your loan rates can change throughout the life of the loan.

+ VA Loan

Eligible veterans, active duty personnel, and surviving spouses can get guaranteed loans with competitive rates.

+ FHA Loan

The Federal Housing Administration loan allows buyers who may not qualify for a home loan to get on low down payment.