The Home Buying Decision

Buying a first home, or even subsequent homes, is a substantial decision and commitment. As you move forward in the home-buying process, here are details to consider:


Financial Prequalification

Speak with a reputable mortgage lender to determine how much you can buy or borrow. Keep in mind that whatever they determine, ultimately you will be responsible for the payment and should feel confident and comfortable with assuming the financial responsibility.

Get prequalified or preapproved with a mortgage lender. Research several financial institutions and choose one that best suits your needs.

Home Property Selection


- Ease of availability to highways, airports, and public transit for commuting and leisure pursuits
- Local amenities and entertainment activities
- Access to quality schools
- Neighborhood safety
- Limited intrusive sounds or air quality issues
- Overall “vibe” that meets your lifestyle

Property Size and Condition

- How many bedrooms and bathrooms do you need now vs. in the future?
- Living space for the activities you enjoy, such as a porch or large kitchen
- Garage
- Storage space
- Yard space, size, and landscaping
- Is there room for expansion if you want to add-on to the home later?
- Do you want a home that is “move-in” ready, or one that may be less expensive but requires updating or repair?

Working with a Realtor

- Gain assistance from a realtor who can help you locate properties that meet your criteria. ?
- Have your prequalification / preapproval paperwork ready as many agents will want to see documentation that you are qualified to submit offers to buy property

Funds Needed to Buy a Property

Down payment

Down payment cost which range from 0% and up.
Note: products and guidelines are always subject to change.

Closing costs

Note: There are programs with no closing costs for which you pay a higher rate. Typically you find the “no closing cost” rate on the fixed rate products only. Consult your loan officer on the matter.

Funds to initiate an escrow

Typically you deposit money into an escrow account, meaning the bank collects funds to make your property tax payments, home insurance payments, and PMI (private mortgage insurance) payment if required. Banks have laws that mandate they can only collect so much money into an escrow. Banks typically require three months of property taxes, three months of home insurance, and one month of PMI (if you’re making a down payment of less than 20%).


You are required to purchase a home insurance policy for that covers the initial year of ownership prior to the closing. Commonly, the lender will have the mortgagee clause contained within the commitment letter that you must present to your insurance company.
Note: The insurance company will also require your loan number.

Funds for prepaid interest

Funds for prepaid interest. Money to close out the end of the month.

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Scoops wishes you much happiness in your new home!