Buy A Home
Buying Process for Your Next Home
Shopping for your next home can be exciting – but finding the right financing option may seem overwhelming. With PHH Mortgage, it doesn't have to be.
We’ll help you find the financing that fits your situation – and maybe even get an edge over other buyers. Our experienced loan consultants will answer your questions every step of the way. It all starts with a call to (800) 210-8849.
This overview gives you a good idea about what’s involved in buying your next home. You may be familiar with some of these terms and steps from buying your current home.
Determine What You Can Afford
Some of the key costs to consider when buying your next home include:
- The down payment: This is the part of your home purchase price you’ll pay in cash and will not finance with a mortgage. The larger your down payment is, the lower your monthly mortgage payments can be. Some make a larger down payment on their next home by using the money they make on the sale of their current home.
- Closing costs: Due at closing, these cover expenses that complete the transfer of ownership – such as an origination fee, attorney's fee, initial escrow payments and the costs of obtaining title insurance and a survey. Closing costs are typically based on the home price and vary according to location.
- Monthly payments: The amount you pay each month for your next home is based on both the principal (the amount of the loan) and the interest (the amount you pay to borrow money, calculated as a percentage of the amount borrowed). Monthly payments may also include money held in escrow for taxes, homeowners’ insurance and mortgage insurance.
Talk with one of our loan consultants who can help you figure out how much you are comfortable spending and find a financing option that's right for you. Call (800) 210-8849.
Get a Pre-Approval Decision
If you're thinking of selling your home and buying a new one, getting a loan pre-approval decision can make the experience faster and easier from start to finish.
Pre-approval is a preliminary evaluation of your financial status that does not include a commitment to giving you a loan. It's best to obtain a pre-approval decision before you start house hunting, as it will allow you to search with the confidence of knowing the amount you can borrow. In fact, many real estate agents will ask you to get a pre-approval decision first so they can show you homes that suit your budget.
Take a few minutes to call us at (800) 210-8849 for your loan pre-approval decision.
Know What to Expect
Your pre-approval decision application is based on your ability to repay a loan or line of credit. Evaluators will typically consider your income, current debts, credit history, assets and available funds. You will also learn what documentation you’ll need at the time of your mortgage application.
Evaluation criteria for a pre-approval include both your debt-to-income and housing-to-income ratios. Your debt-to-income ratio is based on total monthly debt payments, while your housing-to-income ratio reflects the total amount you spend each month on housing.
You can also contact us to receive a pre-approval decision in as little as one business day.1 Submitting complete, accurate and legible documentation helps to speed the process – and we can help keep you on track. Once you're pre-approved, you can check the status of your loan anytime at www.mortgageloanstatus.com.
Explore Your Options
Once you find your perfect next home, your real estate agent can show you a list of comparable homes (known as "comps") recently sold in the area. You can use these comps to help figure out the right price to offer. Of course, there are other factors to consider, such as the condition of the home and any needed repairs. Search for homes online to get a good idea of what’s available in your price range and desired location.
You could be legally bound by any offer you make, so we strongly suggest carefully thinking through all the details and consulting with your real estate agent beforehand.
Finalize the Home Inspection and Loan Commitment
Your offer should contain provisions for a home inspection by an accredited home inspector and an outline of actions the seller needs to take in case there are problems. The inspection should cover heating/cooling, electrical and plumbing systems, as well as interior and exterior structural elements. It is recommended that you be there during the inspection so you can ask questions and learn about the property.
The loan commitment takes place once we approve the loan, appraise the home to make sure it meets our guidelines and conduct a title search to ensure there are no outstanding liens.
Close on the Property
At settlement, or the closing, you and the seller will transfer funds and sign all necessary paperwork to complete the deal. Closing agents, real estate agents, attorneys and mortgage and title representatives may also be present. Our loan consultant will help you prepare for the closing and will provide you with an estimate of any fees.
Get Started Now
Getting the right kind of financing is a critical step in the process of buying your next home. PHH Mortgage can help you navigate the details and requirements. Call an experienced loan consultant at (800) 210-8849 or begin the application process online.
1 This is not a commitment to lend. All pre-approval requests or applications are subject to complete underwriting review.