Buying a home is very exciting but can also feel like a daunting or confusing task. It may be one of the largest purchases of your life and with that, could cause stress or uncertainty.  Knowledge is power. Understanding the home buying process, terminology, all costs involved, and your many options will help you have the confidence you are making informed decisions about your home investment. 

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Most people utilize a mortgage to purchase their home. A mortgage is a loan that allows you to finance the price of the home minus the cash you put toward the purchase in the form of a down payment. You then repay the money over 10, 15, 20, or 30 years and while you are making these payments, the lender holds the deed to the home. Mortgages involve large amounts of money, therefore lenders (and the government) have developed specific requirements for each loan type to help mitigate the risk of the borrower defaulting (not repaying the loan).      

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Before you hit the streets (or your internet browser) to find a dream home, there is work to be done that can help make the most of your time and financial resources. Preparation is beneficial months, even years, before you apply for a mortgage. Being proactive can result in qualifying for a lower rate, better loan products, and a larger loan amount. Knowing what to expect and what will be required will help you successfully navigate the buying process to get the keys to your new home.