The Home Buying Process

If you are a first-time homebuyer or just haven’t bought a home in a while, this guide will offer you valuable information about purchasing a home.
 
1. Gather the information you will need to qualify for a home mortgage
 
 2. Know what type of property you are seeking. Are you wanting a move in ready home or are you looking for a foreclosure that you can fix up. Your lender needs to know. Not all loan packages are for all properties types. FHA, VA, 203k, USDA.
 
Before you can buy a home, you will need to secure the financing. So be ready to provide a mortgage lender with the following information:
 
Income and Employment verification.
Work history of steady employment.
 
Down Payment
 
Your lender will ask how much money you have available for a down payment. There are many loan packages avalible with a down payment below 20%, but, a down payment of 20% or more of the home purchase price demonstrates your commitment to long-term homeownership to the lender and provides you with immediate equity in a new home.

Your lender will review your credit history, to see how well you’ve paid your bills in the past, by reviewing your credit report. The lender will consider how much you owe on credit cards, car payments, student loans and other debt. This will give a debt to income ratio. The more debt you have the lower amount of home mortgage you will qualify. The lender will also review your ability to pay property taxes and other expenses of homeownership.
 
Escrow Accounts
 
Most lender will require that you set up an escrow account. With an escrow account, you pay a fixed amount each month in addition to your mortgage payment to an account maintained by the lender. The lender then draws on that account to pay property taxes and homeowners insurance as those bills become due. Escrow accounts ensure that money will be available for these payments.
 
Find a lender and get preapproved for a home mortgage loan
 
Remember that you are investing not just in a house but also in the mortgage loan that will finance your new home. Talk with several lenders and shop carefully for the best deal, including loan terms, interest rate and fees.
 
The lender you choose will review your financial information and explain the preapproval process. While preapproval is not a mortgage commitment or guarantee, it will provide guidance to you and your Realty Express REALTOR® on what you can afford to spend on your new home. Having a preapproval letter to submit with your offer will show to a seller that you are a serious buyer. Once under contract, it will shorten the time it takes your lender to complete your mortgage application process.
 
Make sure your lender explains all loan terms and fees — Ask you lender for a "Good Faith Estimate". This will show you the up-front costs of originating, processing and closing the loan.  

Now, With your mortgage loan preapproval in place, you are ready to get serious about your property search. You will have no worry about finding the perfect house, then, not being able to make a timely offer and missing out on making it your home. Realty Express can help you find the home that meets your needs and your budget. Our licensed real estate agents and brokers has access to the Multiple Listings Service (MLS) offering you the most comprehensive list of Wichita, Kansas area homes for sale.