7 Steps to Buying a Home
Buying a home can be tricky, and we’re here to help you navigate the process.
Your Home Buying Checklist
Whether you're deciding on becoming a homeowner or it's been a while since you purchased your last home, it helps to have a steady hand guiding you through the many steps to buying a house. That’s where Flagstar Bank comes in. We’ll be with you at every point of the home buying process—all the way to moving day.
Step 1 - Make sure you’re ready.
Be sure to consider both your current situation and your dreams for the future when choosing a potential home. Needs and wants can change over time, and a very important first step in buying a home is deciding what those mean to you.
Step 2 - Prequalification.
Because we understand the importance of finding the right fit, our loan advisors will work with you to ascertain your eligibility by looking at your income, debts, credit history, savings, and more. Prequalification will give you a realistic view of your finances, and help you better determine your ideal price range.
Step 3 - Shop for a new home.
With so many listing websites out there, many prospective buyers choose to go at the housing market alone. However, a good real estate agent can be an excellent partner in the home buying process. Real estate agents have access to listings and resources that the average individual or website may not, and can assist you in negotiating and signing on your new home.
Step 4 - Make an offer and negotiate.
Once you’ve found the perfect home, you’ll make an offer to the seller. Many homebuyers find it helpful to already have an offer number in mind; this can be predetermined with the guidance of your loan advisor and real estate agent. If negotiation is required, your agent can help you find an appropriate vantage point, like home condition or neighborhood value.
Step 5 - Inspection.
When you and the seller reach an agreement, the house will go into escrow, or “pending," a period in which the house will be off the market. While the home is in escrow, it’s important to arrange for a formal inspection. If there are damages or structural issues within the home, talk to your real estate agent and loan officer. Depending on the problem, you can potentially reopen negotiations with the seller to restructure the deal, or back out entirely.
Step 6 - Loan approval and home appraisal.
A Flagstar loan advisor will work with you to tailor the right mortgage to your personal needs. If you took the steps to get preapproved, you may have a more holistic idea of what this will be. While we’re working to get your new loan ready, we’ll also schedule an appraisal of the home to determine its value.
Step 7 - Close on your new home.
At closing, you’ll sign the final loan paperwork and associated homeowner documents at a title company, then receive your keys. In January 2019, Ellie Mae reported that the average time to close nationally is around 49 days,1 and can vary based on your approval status.
Ready to make your move?
While these are the most common steps people take when buying a house, every situation is different and requires special attention. Whether you’re knee-deep in the home buying process already, about to begin looking, or have further questions about how buying a home works, reach out to a Flagstar loan advisor near you for more information.
So you’re ready to take the step to homeowner status.
But how do you know where to start?
At Flagstar Bank, we’re dedicated to guiding you through this process.
So get ready to say hello to your new home, sweet home in these seven simple steps.
Step 1 - Make sure it’s the right time to buy a home.
When choosing whether to rent or buy, think about your future needs and goals. Buying a home has many long-term benefits, like building wealth and equity, and saving on taxes.
Step 2 - Prequalification.
Share financial information with your Flagstar loan advisor like:
- Debt
- Income
- Assets
After reviewing, we can give you an idea of how much you can afford.
Step 3 - Shop for a new home.
Shopping for a new home is an exciting time. Although it’s not required, there are many benefits to using a real estate agent in your search including:
- Managing viewings
- Negotiating price
- Assessing pros and cons of each home
Step 4 - Make an offer and negotiate.
Once you’ve found the perfect place, make an offer to the seller. It is likely you may have to negotiate, so talk to your real estate agent about preparing a vantage point like home condition or neighborhood value.
Step 5 - Inspection.
Once you have come to an agreement with the seller, schedule a home inspection right away; if there are issues with the home, you have the option to:
- Negotiate to restructure the deal
- Ask for necessary repairs
- Decline the deal
Step 6 - Loan approval and home appraisal.
A Flagstar Loan Advisor will work with you to tailor the right mortgage to your personal needs. While your new loan is in underwriting, we’ll also request an appraisal for the value of your new home.
Step 7 - Close on your new home.
At closing, you’ll sign your final loan paperwork and all the required homebuyer documents. Once closing is complete, the home is all yours.
At Flagstar, we make buying a home personal.
And while the process can be stressful, we do everything we can to make sure securing the perfect loan is not.
Flexible mortgage programs. Custom-crafted loan solutions.
It all ladders up to meeting your needs and reaching your goals.
So when you’re ready to move forward with purchasing your dream home, let us be your guide to success.
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Programs for qualified borrowers. All borrowers subject to credit approval, underwriting approval and lender terms and conditions. Programs subject to change without notice. Some restrictions may apply. Not a commitment to lend. A loan advisor will review and provide you the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.
1https://assets.contentstack.io/v3/assets/blt47a327ac368e22cd/blt715ff5f37571ee55/5c6cb852eddb5c9a5fe9b437/EM_OIR_JANUARY2019.pdf