Ameristar Mortgage Blog

The 8 Steps to Home Ownership in Illinois and Wisconsin including Chicago, Madison and Milwaukee

Step 1 : Make the Decision to Buy

It seems obvious, but it’s good to note that the first step to buying a house is making the decision to buy. Consider the reasons you want a new house and write them down. Determine how long you want to live in the new house - does buying still make good financial sense? Can you afford a house that will meet your list of requirements? A good rule of thumb is your mortgage payment should not exceed 1/3 of your net monthly income.

Step 2 : Seek Professional Guidance

At this time, I will help you get pre-qualified for a mortgage loan. Pre-qualification is a written statement from a loan officer indicating his or her opinion that you will be approved for a mortgage loan up to a certain amount. The fact that you are pre-qualified will help you when we are negotiating the deal.

Step 3 : Begin the Hunt

Contact your realtor to let them know that you have been approved. Your realtor should know who your lender is and start scheduling for showings of homes you are interested in. Also, at this time you should start looking for an insurance agent to secure homeowners insurance.

Step 4 : Find Your Dream House

I’m confident you will find your dream house. When you do, you will put together the offer to purchase with your realtor which includes appropriate contingencies (such as obtaining financing, favorable home inspection, clear title, etc.).

The offer is normally presented with “earnest money”. This is a cash deposit made to a home seller to secure an offer to buy the property. The amount is applied to closing costs. If the seller accepts the offer, generally closing is held 30 to 60 days from the offer date (generally dependent on the turn around time of your mortgage financing).

Step 5 : Negotiate the Deal

It is not uncommon to receive a counter offer when the initial purchase offer is submitted. Don’t let this discourage you. You will discuss the counter offer with your realtor and decide whether or not to accept the counter offer, submit our own counter offer, or reject the counter offer and move on.

Market conditions will play a role in how aggressively you negotiate the deal. Stay within your limits. Emotions can lead to buyer’s remorse. It is better to set limits prior to negotiating an offer and stick to these limits.

Step 6 : Get a Loan

Ameristar Mortgage will process and underwrite your mortgage loan. At this time your loan officer is required to mail out a Good Faith Estimate of closing costs and a Truth-In-Lending. When the loan is approved, one of the mortgage processors will contact you to let you know. Since you pre-qualified for the loan before starting your home search, you will be that much closer to the end.

Step 7 : Close the Deal

Basically you will sit at a table with your realtor, broker, the sellers and a closing agent from the title company. The closing agent will have loan document papers for you to sign. The closing agent will then give you a basic explanation of each paper, you may take time to read each one. Be sure to consult your loan officer to make sure you know exactly what you’re signing or you may have an attorney present.

Step 8 : Move In

Congratulations! It’s time to move into your new house and make it your home. Enjoy this exciting time. I’ll give you a checklist to help you remember the numerous details that will make your moving day a pleasure.

Visit our Loan Process page of our site for a detailed view of the loan process in Wisconsin and Illinois

Dennis Hardy
Toll Free: (877) 240-5840 x23
dennis.hardy@ameristarmadison.com
www.AmeristarMadison.com

Visit my blog at http://www.ameristarmadison.com/blog/