The road to home ownership takes many paths and each is as distinct as the prospective home buyer. As a result, there is no absolute timeline because it will differ for each situation, including whether a home is purchased or built. The following is a checklist of general guidelines and a sample timeline of things to remember when planning your home purchase.
Before you begin your home search:
- Analyze your current financial situation
- Keep your spending patterns in check
- Pay off minor debts if it does not adversely affect saving for your down payment
- Save money whenever possible for a down payment
- Think about the price range you want to buy in and how it will affect your monthly budget
- Obtain a copy of your credit report to ensure there are no discrepancies or problems in your credit history
- Review the document checklist provided by your mortgage broker or lender and prepare for a mortgage pre-approval application
- Shop around for area mortgage lenders using a mortgage comparison chart to keep track of what each lender offers. HUD has a good comparison chart in their "Looking for the Best Mortgage" brochure. Click here to access their brochure
- Finalize your decision to work with a lender and make a formal application for mortgage pre-approval from that lender
- Update your documents compiled from the document checklist and take them with your application for pre-approval
- Upon loan approval, obtain a written mortgage approval letter from your lender stating the maximum sales price you can afford
- If you have trouble obtaining financing approval, work with your lender or a housing counseling provider to find out the reason and develop a game plan to position yourself for loan approval.
- Make the decision to purchase or build a home
3 - 6 Months:
- Begin speaking with and choose a REALTOR® who best fits your needs
- Identify areas where you would like to buy or build
- Identify the style of home that best fits your needs: one story, two story, number of bedrooms, etc.
- Once your REALTOR® has been selected, begin a property search, with your pre-approval letter in hand
1 - 3 Months:
- Compare and evaluate homes
- Choose your home
- Work with your REALTOR® to make an offer
- Finalize the terms of the offer with your REALTOR®
- Deliver a copy of the final offer to your lender
- Coordinate home inspection with your REALTOR®
- Review closing documents with your REALTOR® or lender and set a closing date