Buying Process

step 1

Check Your Credit Rating and Build Cash Reserver

If you’re shopping for new home loans Austin, you may be wondering where you should start. Before doing anything else, check your credit rating and build your savings. In the current economic climate, most lenders look for great credit ratings and a substantial down-payment. Unfortunately, the days of anything-goes mortgages are a thing of the past. While this makes it a little harder to get a home loan, it’s not all bad. With a better credit score and higher down payment, your interest rates and monthly payments are lower. Don’t be discouraged if you initial credit score is lower than expected. Many credit reports are riddled with errors that are easily corrected.

step 2

Find a lender

It’s important to choose a lender you can trust that offers rates and conditions that work for you. Finding a lender can be one of the most important and stressful parts of finding a new home, but great news! Milestone has 3 excellent preferred lenders that can give you great competitive rates and a smooth process from contact to closing. These lenders have helped many of our customers attain a loan to purchase a new home.

step 3

Get Pre-Approved

Many consumers confuse the pre-approval process with a pre-qualification. In a pre-qualification, the mortgage lender casually asks your income and expenses to provide a letter that says you qualify for a certain amount. During the pre-approval process, they verify your income, expenses, credit rating, and other information and provide a good-faith approval with an interest rate that’s good for a certain period of time. A pre-approval means that you should be able to rely on receiving a mortgage if nothing changes and the home you choose meets the bank’s standards. Be prepared to provide employment information, pay stubs, W-2 forms, tax returns, banking statements, and information on your current creditors. The lender evaluates your financial situation to determine the amount that you can borrow. This figure plus your available down-payment will set the upper limit for the price of your new home.

step 4

Finding a home

There are several key questions to ask yourself before buying a home, because a home is huge investment that will affect your life for years to come. It's important to consider everything from house size and amenities to neighborhood characteristics and proximity to schools and businesses. MileStone provides a variety of resources to help you learn more about each of our master-planned communities and their surrounding areas, but there's no substitute for putting boots on the ground and seeing for yourself. Contact one of our New Home Specialists at 512-645-2145 and they can answer any questions you might have and guide you to the community and floorplan that makes the most sense for you!

step 5

From Contract to Close

Between the time that you sign the contract and close the deal, many items must be taken care of. On your part, call your lender to lock in an interest rate to schedule a home inspection. If any defects are revealed, ask the seller to repair the home. They have the choice of making the repairs, offering to discount the home, or just saying no. If they say no, you can usually cancel the sale. The seller must have several inspections of their own completed including a termite inspection. During this time, arrange to purchase a homeowner’s policy and provide any additional paperwork to the lender. The lender arranges for an appraisal on the home to ensure that it’s worth the stated amount. In some cases, you may be required to sign a statement that discloses the source of your down payment.

step 6

Closing on Your New Home

On closing day, you will walk through your new home to make sure that it meets with your approval. If any damages are present or anything is missing, this is the time to speak up. Next, meet with your real-estate attorney to complete the final paperwork and provide a check to cover the remainder of the down payment and closing costs. Once everything is signed for your new home loans Austin, your lawyer will hand you the key, and you are now the proud owner of a new home!