Home Buying Process

The more you understand, the more you’ll enjoy buying your home.

Home Buying Steps
The home buying process can seem overwhelming, especially if you are a first-time home buyer. However, the more you know up front, the more pleasurable the whole experience will be. First Financial Freedom Mortgage (FFFM) has put together this section to eliminate confusion and concerns about buying a home. It all comes down to just a few, basic steps:

1) Pre-Qualifying for Your Loan
In order to qualify for a home loan, you must meet certain requirements. The first step in the home buying process is to complete a home loan application. The evaluation of your application will determine your how much home you can buy.

During the pre-qualification process, expect an evaluation of your:
• Credit Report
• Income
• Job Stability
• Assets
• Liabilities
• Goals for Your Home

If you qualify, FFFM will provide you with a pre-qualification letter. This letter will let your realtor know the details of the financing for which you qualify. If you do not qualify, no worries. FFFM will help you put a plan together for you to qualify in the near future.

2) Finding Your Dream Home

At this point, you should know what you are able to afford and the area in which you would like to live. It is a good idea to make a list of your top home requirements before you begin your home search. Your list should include your desired number of bedrooms/bathrooms, approximate square feet, room sizes, school district, hardwood floors or carpeting––that sort of thing. FFFM always recommends finding a real estate agent who you can trust. This is especially true for first time homebuyers. If you don’t have a realtor already, FFFM has a network of trustworthy realtors to whom we would be happy to refer you. Real estate agents serve as another helpful resource to guide you through the rigors of the home buying process. 

Remember, a house is one the biggest purchases you will make. Take your time. Your home search may take days, weeks or even months, depending on your availability and the amount of time you are willing to devote to the search. At FFFM, we give you everything you need to move quickly once you find your dream home.

3) Making an Offer
Once you find your perfect home, your real estate agent will make an offer on your behalf and begin the negotiation process. 

The following factors will help you decide what to offer:
• What are comparable sale prices? To determine if the asking price for the home is too high, too low or just right, your real estate agent can research comparable sale prices of recently sold homes in the area.
• What's the market like? Lower interest rates may mean more buyers, which ultimately may mean extra competition and perhaps higher bids.

• Will the seller be flexible with price? If a home has been on the market for a long time, the seller may be flexible in negotiating terms and price.
• Competing with other offers? Competing with other buyers can influence the price, often pushing the price up.

Once you determine your offer amount, offers are made in the form of a written contract.  Either your real estate agent or the seller's agent will provide a standard purchase agreement that contains the offer details. This agreement is binding and should be reviewed carefully with your attorney and/or realtor. 

There is a possibility the seller may come back with a counter offer of a new price, especially if your offer was less than the asking price. The counter offer should come in writing as well.

Once an offer is accepted, this will result in an executed contract to purchase the home.  An inspection should then be conducted to ensure the home is in good working condition and an appraisal should be performed to determine the market value of the home.

4) Loan Submission
Pre-qualification will speed up the amount of time it takes to apply for the loan. Loan submission is the process of finalizing your financing by formally applying for a mortgage.

Your loan application will be submitted to FFFM’s Underwriting department for approval.  A credit check will be performed on you during this step and you will need to provide documents such as:
• W-2s for the past two years
• Federal income tax returns (if you're self-employed or own 25% or more of a business)
• Pay stubs for the month prior to your application
• Bank statements for all of your accounts (checking, savings, retirement, etc.)
• Current balances and minimum monthly payments on credit cards, child support, other monthly payments, etc.

Once your loan is approved, a final walk-through will be performed before the next step of closing and funding. 

5) Closing and Funding
The final step is closing. Here, all of the papers are signed and the title to the property is turned over to you.

This final signing of the paperwork is typically conducted at an attorney’s office, escrow office or title company. You will need to bring certified funds totaling the down payment, closing costs and pre-paids with you to closing. It is a good idea to review all of your final documents the day before you sign them. You may think about asking your attorney to review them as well.

Once the loan is funded and all documents are signed, you will receive your keys to your new home!

To begin your home buying process, simply contact a First Financial Freedom Mortgage Specialist at (866) 563-7021 or apply now with our easy online application.