your first steps to buying a home
Owning a home is one of those goals that can feel exciting and overwhelming at the same time. You can picture the house, the backyard, the extra space and the feeling of having a place that’s yours. What’s harder to picture is everything that goes into getting there.
Whether you’re buying on your own, as a couple or looking for a home that better fits your family, there can be a lot to consider. From figuring out what you can afford to understanding mortgage options and saving for a down payment, knowing where to begin isn’t always easy. Homeownership is a process, but understanding the steps and the options available to you can make it feel much more manageable. Let’s break it down.
Step 1: Find out what you can afford
One of the first steps in buying a home is getting a clear picture of what fits comfortably within your budget. Start by looking at:
- Your income
- Monthly expenses
- Savings
- Current debts
This is also where prequalification comes in. You’ll provide information about your income, assets and debts to help your mortgage lender estimate how much you may be able to borrow. This can give you a clearer picture of your buying power and help you set a realistic price range before you start looking at homes.
As you begin the process, it’s also helpful to start gathering the documents your lender may need, such as two years of tax returns, W-2s, recent paystubs and bank account statements. Having these documents ready can help keep things moving once you find the right home. It’s also important to keep your finances as consistent as possible while you’re preparing to buy. Opening new credit accounts, financing a large purchase, changing jobs or making large unexplained bank deposits can affect your mortgage approval. If you’re considering a major financial change during the homebuying process, talk with your mortgage lender first.
Take the first step:
Blackhawk Bank & Trust offers free mortgage prequalification. You can get started online through our mortgage application or connect with one of our mortgage lenders:
Cyntha Loyde
Mortgage Officer
Email: cloyde@choosethechief.com
Phone Number: (309) 787-9551
Cynthia joined Blackhawk Bank & Trust in 2011, specializing in conventional, FHA, VA, and USDA mortgage lending. She also now adds Bridge Loans, Construction Loans and HELOCS to her list of services. With over 25 years of experience in processing, underwriting, closing & servicing loans, Cynthia is committed to providing ideal financing options to all new homebuyers and current homeowners.
laura Cameron
Mortgage Officer
Email: lcameron@choosethechief.com
Phone Number: (309) 787-9506
Laura Cameron has an extensive background in the mortgage industry, starting her career as a Mortgage Officer in 2013 at the Blackhawk Bank & Trust Davenport location. With over 15 years of experience in the field, she has gained valuable knowledge in various aspects of mortgage operations, including Processing, Closing, Secondary Mortgages, and Automated Underwriting System (AUS) underwriting. Additionally, Laura is involved with the Home Builders and Remodelers Association, the Iowa Mortgage Association (IMA), and the Bettendorf Business Network.
Step 2: Understand your downpayment options
The down payment is a big part of buying a home, but it doesn’t have to be the reason you put your plans on hold. Understanding how much you may need and what resources are available can give you a much clearer idea of what’s possible. One of the biggest misconceptions about buying a home is that you need a 20% down payment. Depending on the mortgage, some homebuyers may be able to purchase a home with as little as 3% down. Your Blackhawk mortgage lender can help you understand how much you may need and what options are available to you.
Another option available through Blackhawk Bank & Trust is the Downpayment Plus® Program. Eligible homebuyers may receive up to $10,000 toward down payment and closing costs.
To qualify, homebuyers must:
✓ Meet income eligibility requirements
✓ Contribute at least $1,000 toward the purchase
✓ Complete pre-purchase homebuyer education and counseling
✓ Use the home as their primary residence
Our mortgage lenders can help you understand the requirements and determine whether Downpayment Plus® may be an option for you.
Step 3: Start house hunting
Once you’ve been prequalified and have a price range in mind, you can begin your home search with a better understanding of what works for your budget. This is also a good time to connect with a realtor, who can help you find homes that meet what you’re looking for, schedule showings, provide insight into the local market and eventually help you put together an offer.
Keep your mortgage lender in the conversation, too. Your Blackhawk Bank & Trust mortgage lender can answer financing questions and help you understand how the purchase price, property taxes, and insurance could affect your mortgage and monthly payment.
Step 4: prepare for closing
Found the one? Your real estate agent can help you make an offer and navigate negotiations. Once your offer is accepted, you’ll work with your mortgage lender to complete the financing process. From there, you’ll move through things like the appraisal, inspection, final loan approval and closing. There will be paperwork and probably a few questions along the way, but your Blackhawk Bank & Trust mortgage lender will be there to help you through the financing process.
take your next step with us
Buying a home is a big decision, and you don’t need to know every mortgage term or have every detail figured out before you get started. At Blackhawk Bank & Trust, our mortgage lenders are here to help you understand your options, answer your questions and find a mortgage that fits your needs. Whether buying a home is something you’re ready for now or a goal you’re working toward, we’re here to help from your first conversation through closing day.
Ready to see what homeownership could look like for you? Start with a free prequalification or connect with a Blackhawk Bank & Trust mortgage lender today.