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Highlands Residential Mortgage Resources

How do I start the mortgage process?

By: Highlands Residential Mortgage

Are you thinking about buying your first home? Don’t worry, you’re not alone! Buying a home can be a major life decision, but with some guidance and planning, you can have a smooth experience! Here are some key steps to get you started:

  • Choose a lender
  • Get pre-qualified
  • Nail down your home buying budget
  • Save for a down payment and closing costs
  • Find a real estate agent
  • Prepare your documents and avoid certain purchases
  • Start looking at homes

When choosing your lender, look for someone who has experience working with first-time homebuyers and who can guide you through loan program choices. They should be able to explain the different types of loans available to you (such as Conventional, FHA, VA, and USDA loans) and help you determine which one is the best fit for your financial situation.

Before you dive in, it’s important to determine your budget. When you get pre-qualified by a reputable lender, you will get a great idea of how much purchasing power you have and what really fits into your budget. This means taking a close look at your income, expenses, and savings to figure out what you can comfortably spend on a home. Keep in mind that you’ll also need to factor in other costs such as property taxes, homeowner’s insurance, and maintenance expenses.

Saving for your down payment and closing costs is the next step. Most lenders require a down payment, which can range from 0% to 20% of the purchase price of the home, depending on the loan program or borrower eligibility. Also, start saving early to ensure you have enough money for closing costs, which typically range from 2% to 5% of the purchase price. If a down payment seems out of reach, be sure to talk to your lender! A good lender can offer insight into down payment assistance programs that may be available to you.

Finding a real estate agent who has experience in the area where you want to buy and who has good reviews from past clients can help you navigate the home buying process. A seasoned real estate agent has access to a large database of available homes, can help negotiate offers, and provide support and guidance through your home buying experience.

When you work with a lender, it’s important to be prepared with the necessary documents, including recent pay stubs, tax returns, bank statements, and other financial documentation. Also, remember to avoid making large purchases on credit or making major changes to your financial situation, such as quitting your job or taking on new debt, as this can affect your ability to get approved for a mortgage.

It’s time to start looking at homes! Be prepared to make compromises and prioritize what’s most important to you in a home. And don’t forget to get a home inspection to identify any potential issues with the home that you may want to address before closing.

With these steps and the guidance of your trusted loan originator, you’ll be on the right track!

Click here to find a Highlands loan originator in your area.


*This is not a commitment to lend.  Not all borrowers will meet the requirements necessary to qualify.