At Security First Financial, we know that buying your first home is a big decision and we want to make sure you feel confident and prepared. Read about the steps of the home buying process below to know what to expect when you’re ready to buy your first home...
1. EXPLORE YOUR OPTIONS
When you’re ready to buy a home, meet with one of our local Loan Originators to get personalized advice about the many home loan options available, but be sure to explore other lenders as well. We would love to work with you, but it's always best to do your homework and to make the best decision that is right for you and your family.
Common home loan options include FHA loans, VA loans, USDA loans and Conventional loans. In many cases you can get a loan with 100% financing (closing costs and fees may still apply) or a low down payment, so don’t wait to buy the home you deserve because you think you need a huge down payment.
There are also programs in Colorado that offer Down Payment Assistance grants and second mortgages to help ease the burden of paying the initial down payment.
Your Loan Officer will talk to you about your goals and financial situation to help you find the loan that’s right for your specific needs.
2. GET PREQUALIFIED
Before you start shopping for a home you will need to at least get prequalified. The lender will look at your credit score, income, assets, debts and more to get an idea of how much you can afford to borrow. Getting prequalified for a loan is faster and less official than getting pre-approved, but a pre-approval is taken more seriously when making offers on homes. With a prequalificaton you'll get a rough estimate of how much you’ll be able to borrow and be able to use this information to set a budget when house shopping.
3. SHOP FOR A HOME
Once you’re prequalified or pre-approved, you’ll have a clearer idea of how much you can afford. Next, it’s time to start looking for homes in your budget. In many cases, a real estate agent can help you navigate the market; if you need help finding an agent, ask your Loan Officer for a suggestion.
Set your priorities ahead of time to make it easier to decide on a home. For example, if you need a yard for your dog or a two-car garage, or if you want to live in a specific area, let your real estate agent know.
Once you’ve picked a home, your real estate agent can help you prepare a competitive offer. Be sure to schedule a home inspection to make sure everything is in good shape.
4. COMPLETE THE LOAN PROCESS
Your loan officer can walk you through the loan process step by step. They will arrange for an appraisal to get an independent estimate of the home’s value. You will also likely be asked to provide documentation. Keep the process moving smoothly by getting requested documents to your Loan Officer quickly.
Documents you may need to provide include:
Signed purchase contract
Pay stubs for the last 30 days
W-2s for the past two years
Tax returns for the past two years
Bank statements for the past two months
Homeowners insurance policy
Most recent quarterly 401(k) or other asset statement (if applicable)
Veterans: DD214, LES, or NGB22 forms (if applicable)
Name of preferred title company
5. CLOSE ON YOUR HOME
When the loan is ready to close, you’ll review and sign documents. Your Loan Officer can answer any questions you have about the paperwork. When the loan is funded and closed, you’ll get the keys to your new home!
We're here to help you achieve your homeownership goals. If you have any more questions about the home buying process or are ready to get started, gives us a call! 303-740-8300