What should you know when purchasing a home?

Shopping for a home may be fun, but serious homebuyers need to start the process in a lender’s office, not at an open house. You will benefit by consulting with a lender and obtaining a prequalification letter.

Important things to know:

* You should discuss all of your loan options and budgeting with your lender, including down payment requirements.

* Your credit will be checked and potential problems identified early on that will help you along the way.

* You will find out the maximum amount you can borrow so you have a better idea what you can afford.

When you have an idea of the home you can afford, and have received prequalification from your lender, the shopping process becomes easier. Most buyers will want a real estate agent to help find the right houses, negotiate a great deal and explain all the steps of home buying.

Now, the fun part! Look at real estate listings on many websites and ask your agent to set up appointments. Your agent will also be on the look out for new listings that fit your needs. Once you have found your dream home it's time to make an offer to the seller through your agent. Your agent is more familiar with the market and the process than most buyers, so carefully consider their advice. After you have an accepted offer and a signed contract, your lender will help you with the entire loan process.

After receiving an acceptable appraisal, a clear title commitment, satisfactory inspections, homeowners insurance and final approval from your lender, closing is scheduled by the lender with the buyers, sellers and real estate agents. Closing is the day you officially get the keys to your new home after signing loan documents with your lender.

Congratulations, you have officially graduated from a buyer to a homeowner! The entire process from sales contract to closing should take about 30 days

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~Monica Waldon is a Mortgage Originator at Montgomery Bank.