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 so you can move into the home of your dreams.

Buying vs. Renting

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

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. Underwrite

We’ll prepare your loan file for underwriting and order an appraisal. Then the underwriter will analyze your credit, income, and assets.

4. Approve

First, you’ll receive conditional approval, which may require responses to third-party requests. Afterward, the underwriter provides final approval.

5. 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.

Tips for Happy Homebuying

Get pre-qualified before your home search to confirm your price range and give the seller confidence that you can complete the transaction.

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.