Process of Buying a Home
For most people, a home is the biggest purchase they’ll ever make. Knowing that, we ensure that you’re walked through the process carefully. When questions pop up, we’re here to answer them. When you have concerns, we address them. At Field & Main, we’re interested in making you happy, whether you buy a home or not.
Step 1: Review Your Financials and Determine Borrowing Power
We recommend that you check your credit report before applying for a home loan. You can obtain a credit report through the three main credit bureaus: Equifax, Experian and Transunion. Field & Main Bank is required to check your credit history again at the time you apply for a loan.
Our process for reviewing your financial situation includes:
- Reviewing your credit report thoroughly for accuracy.
- Resolving any inaccuracies or outstanding issues.
- Reducing the percentage of available credit currently in use, if possible (pay down other debt).
- Gaining an understanding of your debt-to-income ratio. (A good rule of thumb: Your future housing payment totals no more than 28% of your current monthly gross income, and if you have other long-term debt, your total debt does not exceed 38% of your current monthly gross income.)
- Using our mortgage calculator to estimate your borrowing power.
- Determining the amount you may have for a down payment.
Step 2: Get Prequalified
Before signing a sales contract for a home, and even before looking for a home, check which loan solutions you qualify for based on your financial situation, as well as the amount you are eligible to borrow. As part of the pre-qualification process, we will check your credit history.
Step 3: Put an Offer on a Home and Proceed to Closing
Once you have a sales contract on the house you plan to purchase and all other necessary steps have been completed (such as appraisal, inspection, etc.), we will proceed to closing. Depending on the situation, the buyer, seller, lender, Realtors and attorneys may all be in attendance. Be sure to bring the following to closing:
- A cashier’s check (if not using a wire transfer) to cover any applicable down payment and closing costs
- Valid photo ID
Step 4: Celebrate
Once all the paperwork is signed, you’re a homeowner! As you leave the closing, you will receive:
- A copy of the loan and title company documents you signed
- Keys to your new home