This post is written and sponsored by U.S. Bank.
So, you’re ready to make the big leap into home ownership? Good for you. Home ownership can be a great experience and holds a number of tangible and intangible benefits. But first, you need to actually buy that property, which, especially if this is your first home, can feel more than a little complicated.
Understanding the mortgage process
Since a home is arguably the biggest purchase you’ll ever make, being prepared is key to having a successful experience. Doing some homework ahead of time – specifically on mortgage prequalification, the type of mortgage that’s best for you and determining how much home you can afford – will benefit you when it comes time to take the plunge.
U.S. Bank is a great resource to help you navigate the often complex home-buying process. And if you’re really new to this frequently perplexing world, look no further than Achieve Your Goals, a new financial resources site from U.S. Bank. It’s full of information on a wealth of topics, including a My Home section filled with great articles on everything related to mortgages, homes and the home-buying process.
What is prequalification?
Prequalifying for a mortgage is an important step in the home-buying process. It lets everyone involved know you’re serious about buying a home, and is a great way to help keep the process running smoothly. To see how much you may be able to borrow, and under what conditions, complete a mortgage prequalification request with U.S. Bank to get the ball rolling. You may be surprised what you may possibly qualify for. To do this, know that you’ll need to be a legal U.S. resident and 18 or older. Also, you’ll need to know your pre-tax annual household income and monthly household debt.
If you have been pre-qualified, the next step is determining what type of mortgage makes sense for your individual circumstances, as there are various types of mortgage loans. There are plenty of resources available where you can learn about the different types of mortgages that could be available to you.
How much home can you afford?
First, figure out your plans for occupancy. Are you intent on living in the house for only a few years? Or maybe for the rest of your life? Are you in the military? Or have your eye on your dream home? Your answers to these questions could determine the type of loan and home that will work best for your personal buying experience.
Whatever your circumstances are, give it some thought ahead of time. To get estimates of what your mortgage payments could look like, try this U.S. Bank mortgage calculators.
Once you’ve been prequalified, determined what type of mortgage makes the most sense for you and know how much home you can afford, you’ll be ready to start looking for that dream home.
Happy house-hunting!
Tamra Phelps says
March 20, 2015 at 12:35 pmEvery one who wants to buy a home should know this stuff! You would be surprised at the people who go looking for a home without pre-qualifying for a loan. They find out too late that they have some credit issue & lose the house they want.
David Fultner says
March 22, 2015 at 3:53 pmSome great start tips, It is the best investment of your life.
Robin (Masshole Mommy) says
March 23, 2015 at 7:51 amBack when I bought my house, NO ONE explained what was going on. We kept asking, begging for answers, but no one wanted to take the time to explain anything. It was very frustrating.
Brittany says
March 23, 2015 at 8:17 amWe had a pretty negative experience for our first home and are quite nervous to purchase again in the future! One of my biggest tips is to buy in a neighborhood with a HOA and be very careful of building around open lots — you never know what will build around you which could lower your property values!
Nancy @ Whispered Inspirations says
March 23, 2015 at 12:28 pmThese are great tips! I made sure to do a lot of research before buying our house.
Elizabeth @ Being MVP says
March 23, 2015 at 12:48 pmWhat great tips you’ve shared! I’m on the hunt but want a house that is way out of my price range – $2.5 mil 🙂
Tammy says
March 23, 2015 at 1:07 pmThis is such a good list for starting the process. One other thing for all new homeowners to keep in mind is not to get too house poor because houses are money pits, and always need some work to be done on them 😉
Jenny Temcio says
March 23, 2015 at 2:34 pmI agree that prequalification is a great first step. That way you know exactly how much you can afford before you start to buy.
Dawn says
March 23, 2015 at 4:10 pmThese are great tips. Getting prequalified is an absolute must! You need to know how much you can afford.
Amy Desrosiers says
March 23, 2015 at 7:54 pmI bought my home in 2010, and it was quite the stressful situation. I have to say I do love my home though!
Danielle says
March 23, 2015 at 8:01 pmBuying a home can be so frustrating. We currently still live in an apartment because we haven’t decided exactly where we want to settle down with our little family, but it’s going to have to happen sooner than later. I’m not looking forward to the whole process.
Shauna says
March 23, 2015 at 8:19 pmGreat tips. I know it was super-easy to buy our house when we were pre-quailified. It put us above the other couple looking at the same house who weren’t pre-qualified.
Chelley @ AisForAdelaide says
March 23, 2015 at 8:45 pmThis is a great post! We are looking to sell our first home (bittersweet) and buy our forever home!
Trish says
March 23, 2015 at 8:56 pmIt has been many years since I bought a house, but this advice seems spot-on! It can be an overwhelming process, but it makes it a little better if you know what to expect going into it 🙂
Mama to 5 BLessings says
March 23, 2015 at 9:11 pmGreat tips. We have been in our home for 10 years. I so would love to by a bigger home.
Ann Bacciaglia says
March 23, 2015 at 9:30 pmThese are really great tips. My sister is just starting the home ownership journey. I will share this with her.
Katy Rawson says
March 23, 2015 at 10:35 pmBuying your first home can be the scariest thing you’ve ever under taken. It is a huge commitment. But isn’t it so fun to be able to decorate and paint your own walls. It is important to be watchful each step of the way, but it’s worth it.
Liz Mays says
March 23, 2015 at 11:49 pmBuying a home was one of the strangest transitions in my life. I wish I had been more prepared.
Aubrey says
March 24, 2015 at 12:54 amWe have owned our home for 7 years now. We are out growing it. I would love to buy a new one, but will need to wait until I’m finished with school.
Mary Larsen says
March 24, 2015 at 7:02 amWe closed on our house this past Halloween. What an incredible process!
lisa says
March 24, 2015 at 11:18 amGreat tips for first time homebuyers! I love owning my own home!
Stefani Tolson says
March 26, 2015 at 6:50 amThese are great tips. I wish I would have known more about buying a home when I bought mine.