There are several key steps to buying a home, and you can count on your Prudential
Locations agent to be by your side throughout the entire process, with up-to-date
information, professional expertise and
advice. Your agent will customize the process to fit your unique needs.
Download our handy Homebuying Checklist for a printable version of this list.
1. Estimate what you can spend
Sizing up your finances early will prepare you to find the best home loan.
Use a few standard guidelines to gauge your home buying power:
- Estimate two and a half times annual income.
- Calculate 28% of before-tax income for monthly housing debt (mortgage payments,
property taxes, insurance and any maintenance costs for a co-op or condominium).
- Determine how much money you've saved for a down payment and closing
costs.
- Get a rough estimate of how much you can afford with our
How Much Can I Borrow? Calculator.
- Start gathering relevant financial papers needed for your application and
be one step ahead of the game. Our Mortgage Checklist can help.
- Investigate neighborhoods and schools.
2. Get pre-approved
A pre-approval is a letter from a lender to give homebuyers a specific loan
amount and loan type. You can get pre-approved before or after you have found
a home to buy. However, many buyers find they have increased negotiating
clout if they are already pre-approved when they conduct their home search.
3. Find the right home
House hunting can be fun and exciting, but you have to do some homework to
find the right home for you. Choose a Prudential Locations agent, and together you will:
- Conduct a cost-of-living comparison if planning to buy in a different geographical area.
- Prioritize desired home features. Get started with our
Wish List.
- Make an offer and negotiate a final price.
- Have the home inspected.
4. Close the deal
If you've followed the steps above, these final stages of the home purchase
should go smoothly:
- Find the best mortgage for you. Talk to a mortgage consultant to explore your options.
- Organize your documents and information before you apply. Follow our Mortgage Checklist.
- Apply for a mortgage and obtain a commitment letter. For homebuyers with pre-approvals,
this will be a formal application.
- Close the loan. A real estate agent, settlement agent, or attorney generally walks homebuyers through the
process of meeting contract contingencies and scheduling settlements.
- Move in and celebrate!