Process
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.
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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.
- 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.
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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.
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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.
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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!
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