What to Expect When Purchasing a Home
Buying a home involves many steps, and knowing what to expect at each stage makes the process less stressful. Here's a roadmap of the typical home buying journey.
Step 1: Assess Your Finances
Before anything else, review your budget, credit score, and savings. Most lenders want to see a credit score of 620 or higher, though some programs accept lower scores. Determine how much you can comfortably afford for a monthly payment—typically no more than 28% of your gross monthly income.
Step 2: Get Pre-Approved
A mortgage pre-approval tells you exactly how much you can borrow and shows sellers you're a serious buyer. You'll provide income documentation, tax returns, bank statements, and consent to a credit check.
Step 3: Find Your Home
Work with a real estate agent who knows your target area. Attend open houses, tour properties, and stay focused on your must-haves versus nice-to-haves. In competitive markets, be prepared to move quickly.
Step 4: Make an Offer
Your agent will help you craft a competitive offer based on comparable sales, market conditions, and the home's condition. Be prepared for negotiation—the seller may counter your initial offer.
Step 5: Home Inspection and Appraisal
Once your offer is accepted, schedule a home inspection to identify any issues. Your lender will also order an appraisal to confirm the home's value supports the loan amount.
Step 6: Secure Your Mortgage
Finalize your mortgage application and lock in your interest rate. Your lender will verify your finances one more time and prepare the closing documents. Avoid making any major financial changes during this period.
Step 7: Close and Move In
At closing, you'll sign the final paperwork, pay closing costs (typically 2-5% of the purchase price), and receive the keys. Congratulations—you're a homeowner!
The entire process typically takes 30-60 days from accepted offer to closing. BrightStar Credit Union's mortgage team guides you through every step. Reach out to get started.
