Buying a home

Most people only buy a few homes in their lifetime, so nobody expects you to know how the financing works. This covers the order things happen in and what you’ll need at each step.

Barrett is a mortgage broker. We can take your loan to a number of different lenders instead of just one, and help you pick the one that fits. Read more about how we work.

Start with a pre-approval

Before you look at houses, find out how much you can borrow. A pre-qualification is quick, free, and won’t affect your credit score. It gives you a ballpark number. A pre-approval goes further. We review your income, assets and credit, and you get a letter to send in with your offer. Sellers take that letter seriously.

Get pre-qualified, or see each step from application to closing.

What lenders look at

Every lender looks at the same four things:

• Your income, and how much of it already goes to debt payments.
• Your credit history and score.
• The money you have for the down payment and closing costs, and where it came from.
• The home itself. The appraisal has to support the price you’re paying.

Learn more about how lenders look at credit, what goes into closing costs and how appraisals work.

Picking a loan program

Your situation usually narrows the choices quickly. How much you’ve saved, whether you’ve served in the military, where the home is and how big the loan is all play a part in the homebuying process. Your loan officer will walk you through the options, but it helps to know what each loan program is for before you talk.

Short on down payment money? Many state and local agencies offer down payment assistance, and a lot of it is set aside for first-time buyers.

Your monthly payment

Your mortgage payment is more than principal and interest. It usually includes property taxes and homeowners insurance too, plus HOA dues if you have them and mortgage insurance if you put down less than 20%. When you compare quotes, make sure you’re comparing the full payment.

Use our affordability calculator to see what fits your budget. If you’re putting down less than 20%, read up on mortgage insurance and when you can drop it.

Get your documents ready

A lot of delays come down to missing paperwork. You’ll need proof of income, bank statements showing the money you’re bringing to closing, and a photo ID. The exact list depends on how you’re paid, and self-employed borrowers usually need a bit more. Our application checklist has the full list, and you can download any forms you’ll need.

Have questions?

Our FAQ covers rates, points, APR, closing and how long it all takes. Or find a loan officer licensed in your state and ask them directly.