Countdown to a New Home
Thinking of buying a new home? The experts at Cambria® Mortgage™ can help you streamline the process, make the right decisions, and enjoy a smooth, stress-free experience.
Buying a new home can often seem like a daunting endeavor. But, with a little planning and guidance from the experts at Cambria Mortgage, it can be an easy, stress-free process. Before you get started, review this general overview of the key milestones along the way.
Six Months Out
- Check your credit score. Visit AnnualCreditReport.com for a free credit report from Equifax, Experian, and TransUnion credit bureaus. If there are any errors or issues, your Cambria Mortgage expert can help you resolve them.
- Decide how much you want to spend on a down payment. Down payments can vary from zero (for VA loans) to 3.5% (for FHA loans), and up to 20%—a range that can have a big impact on your purchase. And, depending on your situation, it may not be in your best interest to put down a large down payment. Your Cambria Mortgage expert can review your loan options and help you determine the right dollar amount to put down on your new home.
- Determine how much you can afford to spend on a monthly mortgage payment. Experts advise that your total monthly debt should not total more than 45% of your gross monthly income. And, like down payments, it may not make sense to spend a large percentage of your monthly income on your home, even if you can easily afford it. Your Cambria Mortgage expert can help you review your expenses and income and determine the right monthly payment for your situation.
- Set up an appointment with an expert at Cambria Mortgage. Once you’ve determined how much you want to spend, your Cambria Mortgage loan officer can help you select the right mortgage for your needs and estimate the costs of a title search, surveys, and other costs.
Three months out
- Organize your paperwork. Your Cambria Mortgage expert can provide a list of required documents including your W-2 forms, tax returns, and pay stubs. You’ll also need to gather statements from your credit card, retirement, and bank accounts.
- Get pre-approved for a mortgage. Once you’ve submitted your credit score and paperwork, your Cambria Mortgage expert can help you determine what kind of mortgage will best suit your needs and help you get pre-approved, which will save time and increase your chances of getting the home you want.
- Plan your new home. Make a list of key priorities and “nice to haves”, including location, neighborhood, architectural style, number of bedrooms, and other details, and review current home listings to find homes that meet your criteria.
- Interview real estate agents. If you don’t already have an agent, take time to find a professional you like and trust. Be sure to ask for (and check) several references.
- Tour open houses. Visit as many homes in your price range as possible before making a decision.
Two months out
- Make an offer. When you find the right home at the right price, move quickly to make an offer. With low interest rates and a limited inventory of houses for sale, houses are generally selling fast.
- Get the home inspected. Once your offer’s been accepted, get the home inspected. Review the inspection report and if there are areas of the home that require maintenance, your real estate agent can help you arrange for them to be fixed before the closing, or for money to be set aside in escrow.
One month out
- Do a walk-through. Walk around the house and through each room with your real estate agent to ensure that everything is in the agreed-upon condition.
- Arrange homeowner’s insurance. Call your insurance agent to arrange a new insurance policy and bring proof of insurance to the closing.
- Request a cashier’s check. Once you find out how much cash you’ll need for the closing, request a cashier’s check in the exact amount and bring it to the closing.
Before the Closing
- Review your loan documents. Your Cambria Mortgage expert will provide a closing disclosure three days prior to your closing, and the other documents at the closing.
After the Closing
- Celebrate your success! Pat yourself on the back and enjoy the pride and satisfaction that comes with being a homeowner.
Ready to get started? Your Cambria Mortgage expert can explain the various home mortgage programs, help you decide which loan is best suited to your needs, and guide you through the process. For more information, visit CambriaMortgage.com or call 952-942-0110.