Start by finding out what kind of monthly payment you can reasonably manage using our mortgage calculator. Then, you can work backward using today’s mortgage interest rates to determine your maximum home buying power.

A pre-approval letter shows how much money a mortgage lender has approved you to borrow, based on your savings, credit, and income. You need to do this before you make an offer on a house. Having a pre–approval letter gives your offer a lot more substance, because the seller has solid evidence you’re qualified for a loan to purchase the home.

This is the fun part! After you find the home you want with your agent you'll make an offer. When you make your offer, you’ll generally also submit your earnest money deposit. The earnest money is a cash deposit made to secure your offer on the house and show you’re serious about buying. Ask your Real Estate Agent how much to expect to put down in earnest money.

Getting a home inspection is important because it helps the buyer know if a home may need costly repairs. What is uncovered during an inspection can become part of a sales negotiation between buyer and seller, which is why it can be helpful to have an experienced real estate agent on your side.

You have the choice to go with the company you got your pre-approval with or continue to shop around. When shopping for a mortgage, it's important to remember that you shouldn't shop by rate alone, because there are hundreds of different loan programs that offer different benefits. You should choose a lender depending on your goals and overall monthly payment. Some companies use rate as a marketing tactic and end up putting you in a loan that costs you more money every month.

Most of this application process was completed during the pre–approval stage, but a few additional documents will now be needed to get a loan file through underwriting such as updated income asset documentation. You will then receive a loan estimate with the exact rates, fees, and terms of the home loan you’re being offered.

The appraisal lets you know that you’re paying a fair price for your home. Also, in order for the loan to be approved at the contracted purchase price, the home will need to appraise for the contracted purchase price.

This step is critical! This is where it pays to go with the mortgage company who is reputable because if your loan doesn't make it through underwriting in time you may end up in a terrible homeless limbo.

This is where you meet with the title company and sign a bunch of papers. The one paper you need to really pay attention to is the closing disclosure. It will look similar to the loan estimate you received when you originally completed the full loan application. The Loan Estimate gave you the expected costs. The Closing Disclosure confirms those costs. If everything is in order, you’ll sign all your documents and receive the keys to your new home!