Steps to buying a home

Whether you are a first-time home buyer or purchasing again, it is essential to understand the basic steps of purchasing a home. Buying a home is one of the most significant financial commitments you will make in your lifetime. This guide breaks down the home-buying process into manageable stages to help you understand each decision you are making.

Phase 1: Pre-Planning

Before you take that first step, it is important to have a budget and know the monthly mortgage payment that fits comfortably in that budget. This will help you determine which houses are within your price range.

Once you have an idea of your budgeted monthly mortgage payment, you should check your credit score. Simmons Bank customers can access their credit score at any time through Credit Score Manager, via Simmons Bank Online or Mobile. Alternatively, a full credit check from all three credit bureaus can be done once a year at no cost through annualcreditreport.com. Your credit score significantly influences your loan approval odds and the interest rate you will be eligible for when financing your home.  

Phase 2: Pre-Qualification

Once you have assessed your financial abilities, the next step is to get pre-qualified for a home loan by connecting with a mortgage lender. This process informs you of the maximum loan amount you are eligible for and is often a prerequisite set by real estate agents before you can start touring homes. Additionally, if you are pre-qualified before making an offer, it can help your offer stand out amongst competitors and be more attractive to a seller.

Next, you will want to find a real estate agent. The internet can be a great resource for finding a realtor. You can also get recommendations from friends, family, coworkers, and your mortgage lender. Mortgage lenders are experts in the home-buying process and work closely with real estate agents to facilitate a seamless and successful home purchase. Once you have a real estate agent, they will help you find the home of your dreams and start the paperwork to purchase your dream home.

Phase 3: Closing

When it is time to purchase, your real estate agent will draft a contract to buy the home and coordinate with your financial institution to complete the transaction.

This process can vary slightly depending on which state you're in, but once the contract is signed your lender will initiate the loan process and oversee the mortgage approval. Knowledgeable mortgage officers at your local branch can provide guidance and address any inquiries you may have throughout the process, ensuring a timely and successful closing.

While your loan is being processed, the bank will coordinate with a title company to make sure title work is being done and closing documents are prepared. Title companies play a crucial role in this phase by ensuring the property title is clear of any issues and managing the closing process. They will review all closing documents with you, ensuring a smooth transition to homeownership.

Let's review:

Homebuying takes time as it is one of your most significant financial commitments. It is a big decision that should not be rushed. Choosing a financial institution that understands your needs and has a team of experts to help you along the way is key to a great home-buying experience. Simmons Bank offers a host of products to support you with your home-buying journey, contact a lender today!

This article is for educational purposes only and provides general mortgage information. Products, services, processes, and lending criteria described in this article may differ from those available through Simmons Bank. For more information on available products and services, please contact a Simmons Bank Mortgage Loan Officer.

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