Buying a Home
Buy a house. Make it a home. We can help.
Buying a home is an exciting step toward investing in your future. With a little preparation and friendly guidance from our loan experts, the process can be simpler and faster than you think. From pre-approval through closing, Commerce Home Mortgage manages every step. We help you find the right loan for you so you can move into the home of your dreams.
Buying vs. Renting
Making the leap from renting to buying is advantageous for most people. And as rates remain historically low, now is a great time to reap the benefits. When you buy a home, you make an investment that builds equity over time, unlike renting. When you buy with a fixed-rate mortgage, your monthly payments never increase, whereas rent usually goes up when you renew a lease.
Know Your Numbers
Purchasing a home is one of the smartest investments you can make. But before you jump in with both feet, it’s important to understand some of the associated costs.
Upfront Costs
Earnest Money Deposit
Once your purchase offer has been accepted, you’ll need to provide an earnest money deposit, which will be held in a third-party trust account, such as an escrow company or real estate attorney, for example:
- The deposit will be 1% to 3% of the purchase price
- If you cancel the purchase, you forfeit the deposit.
- After completing the purchase, your deposit will be applied to your required funds, like the down payment or closing costs.
Closing Fees
Down Payment
Most home purchases require a 3%, 5%, 10%, or 20% down payment based on the loan criteria. Qualifying U.S. veterans with Veterans Administration (VA) loans are an exception.
Additional Fees
Depending on the lender or seller, you may be required to pay fees at closing, including:
- Private mortgage insurance (PMI)
- Homeowner’s insurance
- Title insurance
- Escrow/attorney fees
- Points and/or origination fees
- Document preparation fees
- Survey fee
- Pest or mold inspection
- Property taxes
- Recording fees
Ready to Buy?
The Buying Process
Buying your home should be something to celebrate, not a source of stress. We make the mortgage process as simple, fast, and pleasant as possible.
1. Apply
Talk to your loan specialist to determine the best option for you, complete an application, and provide documentation.
2. Sign
Review and sign (or e-sign) documents provided by the disclosure team.
3. Underwriting
We’ll prepare your loan file for underwriting and order an appraisal. Then the underwriter will analyze your credit, income, and assets.
4. Get Approvals
First, you’ll recieve conditional approval, which may require responses to third-party requests. Afterward, the underwriter provides final approval.
4. Close
After the title or escrow company reviews the information, all parties sign loan documents at a scheduled time and place. We fund your loan soon after.
Ready to Buy?
Tips for Happy Homebuying
Prepare for financial obligations, including mortgage payments, property taxes, homeowner’s insurance, utilities, maintenance, and repairs.
Remember that while most homes are excellent investments, some homes have the potential to lose value.
Choose your location carefully with an eye to the future. Consider schools, safety, transportation, possibility of relocation one day and other factors important to you.
Use a licensed real estate professional to help find and purchase your home. They are experts in their local markets and have a fiduciary responsibility to you.
Expect the sale process to be completed in 30 days or less.
Ready to Buy?
