10 Steps in Your Indiana Homebuying Process

Before you fill out any paperwork, start saving up for your down payment. Most traditional home loans require 20% of the home’s purchase price up front, while other types of mortgages, like an FHA loan, require much less. There are even home loan options that do not require down payments. It is important to know your options to make sure you have enough on hand to put down a good amount of money. The more you put down up front, the lower your monthly mortgage payments will be. You’ll also need money to pay for your closing costs if you’re not financing them into your mortgage.

Check your credit report and credit score before applying for a loan. By law, you can get a free copy of your credit report every 12 months at annualcreditreport.com. Be sure to review your credit report for any errors and dispute them early on in your home buying process. It can take time for credit bureaus to change incorrect information, so cleaning up your credit may take a while.

Before you start shopping for houses, determine your budget to get an idea of what you can afford. This will give you and your real estate agent a good idea of your range. Remember, you may get approved for more than you can realistically afford, since most calculators and mortgage companies don’t ask about or factor in every regular expense. It’s wise to add a dose of common sense to any mortgage payment decision to ensure you can comfortably afford your monthly payments.

Another step you’ll want to complete before house shopping is to get pre-approved for a home loan. This will show sellers you are a serious potential buyer, which can help in the negotiation process. Indiana Members Credit Union can help you get pre-qualified for a mortgage here. 

 

Now comes the fun part: shopping for your dream home in Indiana or surrounding areas. Before you begin, determine which amenities are nonnegotiable for you and which aren’t. It’s also important to consider the neighborhood or quality of local school districts. Ask your friends, family, or Indiana Members Credit Union lender to refer to a good real estate agent who can help you navigate the process.

When you find the home in Indiana you’d like to buy, it’s time to make an offer and negotiate. Your real estate agent should be able to guide you through this process and handle everything on your behalf. Make sure you know the selling prices of other comparable homes as well so you can negotiate accordingly.

Once you and the seller have both agreed to the home’s purchase price, you’ll need to put down a deposit to show you are serious and secure the home. This money will go into an escrow account. 

 

To finance your home, you’ll need to submit your mortgage application. Indiana Members Credit Union offers a variety of mortgage options, from fixed-rate mortgages and adjustable-rate mortgages to Jumbo mortgages, USDA loans, construction loans, first-time homebuyer loans, and more. Loan payment terms also vary and typically range from 15 to 30 years for most loan types. Talk to your mortgage officer to figure out what works best for you and your family.

Once your loan application is submitted, the lender will order the appraisal and reach out to the title company. During this time, the processing team may ask you for updated documents that the underwriting team is requesting for loan approval. The underwriting team will review your file again when the appraisal and title work has been completed along with the updated documents that were provided. Once your loan is officially clear to close, you’ll set up a transfer of funds to the title company for the closing day and time that’s been scheduled. On closing day, you’ll head to the title company to review and sign the closing documents.

 

Once you’ve completed the process, you’ll be handed the keys to your new home. Start packing and calling up your friends to help you move, or get ready to hire a moving company. Don’t forget to set the date for your housewarming party!