Homebuying Guide: How to Buy a House

What is pre-qualification?

Pre-qualification determines your ability to repay a loan based on basic information you provide. Your liability, asset, and income information are reviewed by a licensed mortgage loan originator to establish the maximum purchase price you can afford, and how much you may be able to borrow.

What are the benefits of pre-qualifying today?

Pre-qualification helps you understand how much home you can afford. Use it as a guide when looking at houses. Before you get serious about home shopping, you’ll want a pre-approval. We’ll talk about that in a minute. 

Your credit score isn’t the only factor in getting approved for a mortgage, but it’s an important part of determining how much you’ll be able to qualify for. You can get a free credit report from each agency (Equifax, Experian, and TransUnion) once a year online by visiting annualcreditreport.com. Verify your report for accuracy and report and dispute inaccuracies with each credit bureau; unresolved disputes may delay your loan approval. 

Use our mortgage calculators to get a general idea of how much home you can afford. You can see what your estimated monthly mortgage payment may be, the effect of different down payments on your loan, and more.  

A pre-approval is a written commitment from a lender to extend a mortgage to you for a specific amount and time period.  

What are the benefits of a pre-approval?  

With a pre-approval, you’ll be able to negotiate your home purchase confidently. Real estate agents and sellers will take your offer more seriously because it lets them know you’re ready to make a deal. A pre-approval may help streamline your process and result in a smoother transaction. 

Now that you have initiated the pre-approval process, and have an idea of how much you’re comfortable spending, a real estate agent can help you find the right home, negotiate a purchase contract, and manage the real estate transaction.  

Finding the right agent is just as important as finding the right lender. Make sure that you work with a real estate agent you can trust, who has a proven track record, and has your best interests at heart. It’s useful to get referrals from family and friends who’ve been through the homebuying process. 

You have a lender, a real estate agent, and you’re pre-approved. Your next step is to start looking at houses. This is the fun part. Think about yard space, decorating, the number of bedrooms you want, and location. Consider public school ratings, your daily commute, traffic patterns, the crime rate, and local amenities when choosing a home.

So now you have a lender, a real estate agent, a pre-approval, and you’ve found your dream home. It’s time to complete your loan application. The good news is, if you’re pre-approved, you’re at least halfway there. Meet with your licensed loan originator, who will help you identify the information you need to submit your mortgage application. 

Here are some factors to keep in mind as you and your real estate agent get ready to present an offer to the seller:

• The asking price of the home 
• Recent home sales in the area 
• Market conditions 
• Prospective resale value 
• Satisfaction with the neighborhood and amenities 
• Condition of the home 
• How many other prospective buyers are looking at this home 
• If you have a back-up home in mind 

Inspections are important to help you fully understand the condition of a home. They can also be helpful for negotiations to help drive prices down or have additional services stipulated in the contract. If the seller agrees to fix anything, be sure to get commitments in writing. If an agreement is not explicitly written in a contract, the seller is not obligated to abide by it. 

Bring along any co-applicants and your real estate agent, if you would feel more comfortable having them present. Closing usually takes place in the presence of a public notary. You should be prepared for several things. 

Congratulations homeowner! You now have the key to your future. But don’t forget about the key to your mortgage. Our commitment doesn’t end at closing. CrossCountry Mortgage is here to answer questions, offer guidance, and make sure the mortgage you have now is the right one in the future. We know life happens, and circumstances change. A licensed loan officer will always be available to help you refinance, access your home equity, or even purchase additional investment properties if you want to build your real estate investment portfolio.