The Purchase Process

NJ Lenders Corp.

The Purchase Process 6 Steps to Buying a Home Buying a home is an important and exciting milestone,

LendGen offers easy-to-follow strategies that cover your path to homeownership. We know that buying a home is an important and exciting milestone, but it can be overwhelming when you’re not sure what to expect. Listed below are six general steps that outline the purchase process: 

Step 1: Prepare for homeownership 

Preparation is key when it comes to the purchase process. This step is dedicated to checking your credit score and reviewing your financial situation. Your credit and financial history influence your ability to obtain a mortgage, as well as your interest rate. It’s important to understand where you stand, and how your financial profile can improve, as buyers with higher credit scores tend to secure better interest rates. 

Saving for a down payment is the other half of step one. The minimum down payment on a conventional loan is 3%, but keep in mind that a larger down payment brings greater equity and lowers your monthly payments. By contributing a larger down payment, you’ll save on interest and be less likely to have to pay for private mortgage insurance. 

Step 2: Get pre-approved 

A mortgage pre-approval helps you determine the best loan and repayment options for your income level and financial history. Beyond that, a pre-approval helps you to jumpstart the approval process, makes your offer more appealing to sellers and real estate agents, and solidifies loan amounts and purchase prices within your budget. 

LendGen offers a number of helpful resources to assist you in determining which price points and loan options are best for you and your family. 

Step 3: Explore your loan options with LendGen

There is no shortage of loan options for those looking to purchase a home, including conventional, jumbo, 15- and 30-year fixed, VA, FHA, hybrid, and more. Each loan comes with a specific list of requirements and conditions, which is why it’s always best to consult with your trusted LendGen loan officer to explore your options and feel confident when making your decision. 

Step 4: Find the right real estate agent

After verifying your credit history and deciding on a loan, it’s time to contact a realtor. Real estate agents are valuable partners in the purchase process, as they offer guidance and specialized knowledge when it comes to house-hunting. When it’s time to create an initial purchase agreement, your real estate agent will be prepared to handle counter-offers from the sellers while advocating for your best interest. 

Step 5: Prepare to purchase

During the period of time between your pre-approval and closing day, it’s recommended to review any relevant financial documents to determine if any updates are required to report on any changes in your purchasing power and income level. LendGen offers a helping hand for every step of the purchase process. Our team of experienced mortgage specialists always ensure a thorough review and timely updates on your loan application. 

Step 6: Finalize your decision 

Before closing day, we recommend inspecting the property beforehand to search for any structural damages. Your realtor or an independent home evaluator can assist you in finding any damages that may need repair and determining a fair market value of the home. This extra step in the appraisal helps provide assurance on whether or not the property is worth your current investment. 

Once you’ve found your new home, your LendGen loan officer will provide you with an agreement that contains all the terms and conditions of your loan and repayment. Once signed, you’ll be eligible to apply for homeownership. 

After your processor completes and files your purchase agreement to an underwriter for approval, your loan documents will be ready for your signature.