Bee | High IQ Buying: How to buy a home

December 30, 2022

Bee | High IQ Buying: How to buy a home
Bee Mortgage App | High IQ Buying: How to buy a home

High-level overview of buying a home:

- Getting pre-approved
- Signing a contract to buy a home
- Closing

Smaller steps:

1. Identifying a home buying budget
You might want to know what price range to be looking in. This is where Bee’s app can help. While this estimate is no substitute for an actual pre-approval, it will give you a good estimate for how much home you can afford to buy.

2. Start looking at houses online
Start dreaming! Be sure to check out multiple homes to get a good idea of what’s available.

3. Work with a real estate agent
Before you make an offer on a home it’s best to hire a real estate agent to represent you in the transaction. Buyers who use agents statistically get better deals than those who don't. Your agent is your advocate in the purchase to make sure you’re getting a good deal, and you don’t have to pay them anything. Their commission is paid by the seller, even if the seller has an agent selling the home for them.

4. Home shopping with your agent
Your agent will gather a list of houses for you to look at that are in your price range. If you see one you like, they’ll make an appointment to see the home in-person. You’ll do this until you find the one you want to make an offer on to buy.

5. Get pre-approved
When you find a home you like and are ready to make an offer, you’ll need to get pre-approved to show the sellers that you're a qualified buyer. Getting pre-approved with Bee takes a few minutes and can be done in three ways: - In our app (for iOS users; invite only) - On our website - Directly with a loan officer Once you’re pre-approved you’ll receive a pre-approval letter.

6. Make an offer on a home
When you find the home of your dreams, it’s time to make an offer. Your agent will work with you to help you so this the best way possible. You might want to request the seller give you some credits that help you cover the cost of closing. This is common. Rely on your agent’s expertise to guide you.

7. Sign a purchase agreement to buy the home
Once your offer is accepted by the seller, you’ll both sign a contract. Closing normally takes place about 30 days after the date you sign the agreement, but could go up to 60 days depending on the circumstances of the deal. Great lenders close before 30 days. After you get a copy of the signed contract, you’ll need to send it to your lender. Lock in your rate and order appraisal with the lender. If rates are higher than they used to be when you go to lock in a rate, you can always refinance the home in the future when rates drop.

8. Loan Processing: Provide requested documents to lender
After you lock your rate in and order the appraisal, your file goes to loan processing where the lender will make sure the property is eligible for financing. This is the property approval step, and is called loan processing by the lender.

The lender completes three main steps in processing:

- Establish the current value of the home with an appraisal.
- Make sure the title is clear of any liens or encumbrances.
- Verify all costs associated with the home such as property taxes or any dues homeowners are required to pay.

While this is going on, you will be asked to provide certain documents to the lender such as:

- Homeownership insurance policy information verifying adequate coverage on the home
- W2’s verifying job history
- Survey of the property
- Letters of explanation for various things such as credit inquiries

Borrowing tips:

- Good communication between all parties involved
- Follow all lender instructions or requests quickly
- Sending in requested documents quickly
- Letting the lender know of any updates you receive on your end
- Any delays on your end could cause you to miss your closing date or have to pay to extend your rate lock.

If you’re buying a condo, you’ll most likely have to pay to have a condo questionnaire completed by the company that manages the condo units and common areas for the homeowners association. Please note: Do not use your credit to buy anything new until after you close. Financing anything new could jeopardize your ability to qualify for the home loan. After you close, you can buy whatever you want with your credit. It won’t matter at that time.

9. Close!
Get ready to sign your name a gazillion times at the title company’s office! After you close you'll get the key to your new and and Bee a homeowner!

Fill out the form below to contact us or call us at 904-316-5566 .

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