Steps to Home Ownership
Buying a home is a big commitment that requires a lot of time and effort. That’s why it’s important to be informed and prepared for the home buying process.
The following are steps from Glass City FCU to help you along the way:
Step 1: Get pre-approved by applying for a Mortgage Loan
To begin the mortgage loan pre-approval process:
- Contact Glass City’s Mortgage Department by email or phone indicating your interest in obtaining mortgage financing at:
- The Glass City Mortgage Loan Officer will then assist you in completing a mortgage loan application and to obtain your credit report
- Glass City will process your application and complete a mortgage loan pre-approval letter, which is necessary for your realtor and enables you to know how much “house” you can afford (including your mortgage payment, taxes, and insurance).
What should you bring to your first meeting with the Mortgage Loan Officer?
- Paystubs (two most recent for all borrowers)
- W2 for all borrowers for the past two years
- Two years of tax returns (if you are self-employed)
- Deposit and investment statements for the past 60 days
- Click here for the complete checklist of items needed.
Step 2: Meet with a Realtor
A realtor (real estate agent) is an important part of the home buying process. Your realtor is responsible for your best interests, assisting with setting up home showings and working with your Glass City Mortgage Loan Officer.
Step 3: Go House Hunting
Your realtor will set up home showings so you can review and compare several homes.
- Look past cosmetic issues; these can be changed – Look closely at the foundation, roof, windows, air/furnace, plumbing and electrical (things that may be major repairs/costs)
- You may wish to bring someone with you that has experience in plumbing, electrical, etc.
Step 4 Make an Offer
- Your realtor will help you negotiate a fair market price and prepare a purchase offer (including terms and conditions) to present to the seller.
- What the Offer Contains:
- Address of property
- Sale Price
- Target Closing Date
- Amount of Earnest Money Deposit/Check: A personal check you submit along with the offer to show the seller that you are “in earnest” or serious about buying the property
- Provisions: Who will pay for the title insurance, survey, inspections, etc.
Step 5: Meet with your Glass City Mortgage Loan Officer to proceed with the loan
- Bring your Home Purchase Agreement to the meeting
- The Mortgage Loan Officer will begin the application process and order an appraisal (at applicants’ cost) to determine the market value of the home
- Shop for Homeowner’s Insurance
- This is required by Glass City FCU
- Provides financial protection against disasters (fire, theft, liability, etc.)
- Coordinate a “final walk thru” of the home with your realtor to view the property before loan closing
Step 6: Home Inspection
- A home inspection must be completed within approximately 10 days of the offer acceptance
- The purpose of a home inspection is to alert you to the home’s condition or any major repairs needed to be made
- The inspection will be done at your cost (typically $300-$500)
- You will receive an inspection report, and then have 3 options:
1. To cancel the offer
2. To request the seller repair some or all of the problems identified
3. To ask the seller to issue a monetary credit during closing that will cover the cost of the repairs
Step 7: Loan Closing
On Loan Closing Day:
- All parties will sign the papers officially completing the deal
- Bring proof of identification for all applicants (drivers license or State ID) and your Homeowner’s Insurance Policy and the paid receipt
- You will sign all legal documents and pay closing costs and escrow items (guaranteed funds in advance of closing: cashier’s check or wire transfer)
Step 8: Move into your new home!
- FINALLY! You can move in to your new home!
- Be sure to do a thorough cleaning of the carpets, walls, refrigerator, bathrooms, etc. before moving in
- Gather your friends to help move large items to save on moving vans/companies and to assist with painting and other jobs