Buy a Home
Becoming a homeowner is a dream for you. We’re here to make that dream come true.
The decision to buy a home is a big one – and naturally you want to make sure it’s done right.
With this handy homebuying guide and our expert loan officers at your disposal, Park Cities Mortgage is here to help you do just that.
Step 1: Have a plan.
Before you start searching for a home, sit down with your family members and create a comprehensive plan. Why do you want to own a home? What can you afford to pay each month? Where will you buy? What lender and real estate agent will you work with?
Narrow down a list of vendors, and work together to create a budget. These details will help guide your homebuying process and keep it on track every step of the way.
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Step 2: Understand mortgage rates.
Once you have the homebuying plan in place, you’ll need to spend some time in understanding mortgage rates, discount points, and annual percentage rates (APR), among other things. Mortgage interest rates may vary widely depending on a number of factors, including your credit and the lender you choose to work with.
These details may also affect your rate:
Adjustable or fixed.
Adjustable rate loans tend to come with lower rates, though they’re subject to change after a few years.
Shorter-term loans have lower rates than long-term ones, in most cases.
Paying discount points up front can help lower your interest rate over time.
Depending on your personal situation, there may be a number of additional ways to lower your interest rate. If your state or local government considers you to be a low-income homebuyer, you may be eligible for the special low rate loan programs. Your Park Cities Mortgage loan officer will be happy to discuss down payment and low-income loan and assistance programs with you if you’re interested.
Step 3: Get organized.
Set the stage for an easy and efficient loan application by pulling your credit report, learning about different mortgage products, and gathering your financial documents (see our loan checklist for more details). Doing this ahead of time, before filing your application, will help speed up the process and ensure success.
Step 4: Find a home.
Once you’ve established a homebuying budget, the next step is to find a house. Park Cities Mortgage can give you advice on making an offer and when to apply for your mortgage. But before you begin your search, you’ll need to make a few key decisions.
- What do you want in a home?
- How many bedrooms do you need?
- Do you require a garage or basement?
- What kind of schools are in the area?
Many homebuyers choose to work with a real estate agent to find a home. Since finding a home, negotiating the contract, and closing the deal is such an important process, an experienced agent can provide guidance to help you avoid potential pitfalls. A reputable buyer’s agent should have vast knowledge of the real estate, price trends, and neighborhood conditions. The agent will help you shop for your home, tour properties, and be your negotiator if bargaining over price is necessary.
Though the seller will likely have an agent managing their listing, you’ll want your own buyer’s agent to handle your end of the transaction. A buyer’s agent is a real estate agent who represents only you and the purchase of your home. Be sure that you understand whom the agent is representing in a transaction. Remember that a seller’s agent is working for the seller – not you. Buyers are interested in getting the lowest price possible. If you decide to use a real estate agent, you should take great care in selecting one who meets your needs.
As a buyer, there’s typically no cost to you in working with a buyer’s agent. Typically, the buyer’s agent receives part of the commission paid by the seller upon the sale of the home.
Step 5: Head toward closing.
You’ll need to make a number of important decisions between applying for a mortgage and closing on the purchase. Park Cities Mortgage can help you prepare. At the end of the process, you’ll sign your loan documents, and the mortgage funds will be disbursed. Then you’ll officially own the home!
Step 6: Know Park Cities Mortgage is by your side.
Once your home purchase is complete, our Park Cities Mortgage Nationwide Lending mortgage representatives will be available to answer all of your questions during the life of your mortgage. Park Cities Mortgage will be your lender for life.