Homebuying 101

Tip # 1: Review your financial situation.

Understanding how much mortgage you can afford can make all the difference in the homebuying process. Request a pre-approval from a local bank you know and trust to help ensure your agent or broker finds properties within your budget.

Pre-Approval

Tip # 2: Focus your search.

When shopping for a home, it helps to narrow down your property search to a few select neighborhoods.

Tip #3: Work with a real estate agent.

The process of buying a home is complex, and most people find it’s easier with an agent by their side. Agents know the drill and can be a great resource to direct you to inspectors, mortgage loan brokers and others who can help expedite the process. They also know what's fair and common practice in your area.

Contact a Lender

Tip #5: Prepare your documents.

Start gathering your bank statements in advance. You may also need:

• Photo ID
• Tax returns
• Pay stubs
• W-2s
• Other proof of income and assets, including credit history, gift letters and renting history

Tip #6: Hire an engineer or home inspector.

Is a home inspection required?
Before signing all the paperwork at closing to take ownership, you’ll want to have the property inspected. While usually not required by mortgage lenders, home inspections give the buyer a clearer picture of the property’s condition, including any items that might need repair. They can also help identify potential hazards, like faulty wiring in an electrical panel.

Tip #7: Find a reputable attorney.

Do I need a lawyer?
Most sellers use a standard purchase contract. However, legal issues can arise that your real estate agent can't answer but an attorney can. Although good agents know a lot about the negotiating and contract part of the process, they can’t make judgments on legal questions. When looking for a lawyer, consider one with real estate experience in the state where you're purchasing property.

When do I need to bring a lawyer into the process?
If you choose to have a lawyer assist with your homebuying process, you can bring them in to help with the Purchase and Sale Agreement (PSA). The PSA acts as a preliminary contract between buyer and seller showing agreement about the purchase price, closing costs and any contingencies the buyer will need to meet later in the process. Once you have the PSA in hand, you can also have your attorney review it.

Tip #8: Keep your financing local.

When you're ready to seal the deal, it’s important to contact a local community mortgage lender that you can trust to meet your financial needs. It's also well worth considering a local bank with a long history of investing in your community.