Buying a home is an important milestone in life, as it's likely the biggest financial investment you'll ever make. The decision to buy can be overwhelming and pressing, but it doesn’t have to be a stressful experience. To help you become more familiar with the home buying process, browse the list below to learn more about the steps involved in purchasing a home.

A Guide to Buying a Home

1. Get Your Finances in Order

Before buying a house, you want to know what you realistically can afford. There are many online home affordability calculators that can help determine how a monthly mortgage payment could affect the budget. A credit score is also an important number to know as it can affect the interest rate of your loan.

2. Acquire Preapproval for a Mortgage

Meet with a lender to discuss loan options, current interest rates, and how much you can borrow. After finding a loan, make sure to get the prequalification letter that estimates your borrowing power. Having this letter in hand is helpful to have when making an offer with a seller to show you are serious. It can also give some negotiating leverage.

3. Find the Right Property

After figuring out what you qualify for, it’s time to look for a dream home. Work with a real estate agent to save time and energy. They can help narrow the search to homes that fit the budget and financial criteria. When you find a match, an agent can help make an intelligent, informed offer. If it is accepted, a purchase contract is drawn and there could be a good-faith deposit that sits in escrow to show your commitment.

4. Secure the Mortgage

Once the seller accepts the offer, it’s time to apply for a mortgage. Within a few days of submitting the application, the lender sends a loan estimate, including the approximate interest rate, monthly payment, and closing costs. Review it carefully before moving forward, and make sure you have the necessary documentation prepped for the lender.

5. Close on a New Home

Once the mortgage has been approved, and before closing, you'll receive a closing disclosure. Read it closely and review it with a lender if anything seems off. Make sure to bring an ID and any payments due to closing, as well as a cosigner if you have one or they need to be there. Once the loan closes, the funds go to the seller and you'll get the keys to your new home.

If you’re looking for a real estate agent in Louisville, KY, to help you buy a home, contact Josh Jarboe with RE/MAX® Alliance. This real estate broker brings years of experience to each client and works hard to fulfill your real estate goals. He ensures his clients view attractive properties that meet their needs and works with homebuyers to schedule inspections. Call (502) 216-7590 to schedule a showing and visit his website to browse his homebuyer’s guide.