To get preapproved, you need to  apply with your lender . The preapproval process typically involves answering some questions about your income, your assets and the home you want to buy. It will also involve a credit check.

Rocket Mortgage® offers the Verified Approval^℠ so you can make an offer confidently because you’ll know how much home you can afford. We verify your credit, income and assets with documentation you provide, such as W-2s, pay stubs and account statements. This strengthens your standing compared to other buyers who may not have such an approval in-hand.

Conventional Loans

 Conventional loans , sometimes called conforming loans, are loans that are backed by Fannie Mae or Freddie Mac. The majority of mortgages in the U.S. are conventional loans. Conventional loans are always a popular option for homebuyers, and you can get one with as little as 3% down.

FHA Loans

Backed by the Federal Housing Administration,  FHA loans  are less of a risk for lenders because the government insures them if you stop making payments. As a result, FHA loans have credit score requirements that aren’t as strict. You can get an FHA loan with a down payment as small as 3.5%.

VA Loans

 VA loans  are mortgage loans for veterans, active-duty members of the Armed Forces, and qualifying surviving spouses. The most popular benefit of VA loans for homebuyers is no down payment required. VA loans are insured by the Department of Veterans Affairs.

USDA Loans

Another type of government-backed loan, a  USDA loan , helps people in rural and suburban areas buy homes. You can get a USDA loan with 0% down, but your home must be in an acceptable rural area and you must meet income eligibility rules.

There are multiple parties involved when getting a mortgage and buying a house. Your  real estate agent  is your representative in the home purchase transaction. Your agent will look out for your best interests by finding homes that meet your criteria, get you showings, help you write offers and negotiate.

As a buyer, you can usually work with a real estate agent for free. In most cases, the seller will pay the buyer’s real estate agent’s commission. The commission is usually 3% of the purchase price.

A real estate agent represents you and helps you understand how to buy a house. Your agent will show you properties, write an offer letter on your behalf and assist in negotiations. Real estate agents are local market experts and can also advise you on how much to offer for each property.

It’s possible to buy a house without a real estate agent or REALTOR^®. This isn’t recommended, especially for first-time buyers. The homebuying process can be complicated and emotional. Having an agent by your side can help you navigate the housing market, submit a legally sound offer and avoid overpaying for your property.

How can you find the right real estate agent? Begin by asking family members and friends for recommendations. Direct referrals are often the best way to get unbiased information on agents in your area.

Consider working with a^® Real Estate, LLC Verified Agent.

Your real estate agent will help you  hunt for houses  within your budget. It’s a good idea to make a list of your top priorities, some of which might depend on whether you’re looking for a  starter home (one you’ll be in for a couple years or so) or forever home (one you can picture yourself in for a long time ).

Here are some things you might want to consider when shopping for a house:

• Price
• Square footage
• Home condition and possible need for repairs
• Access to public transportation
• Number of bedrooms
• Backyard/swimming pool
• Local entertainment options
• Local school district ranking
• Property value trends
• Property/real estate taxes

Rank your priorities from most to least important and show this list to your agent. Your agent will then show you homes that fit your criteria. You may need to spend some time searching for the perfect home, so don’t get discouraged if your hunt takes longer than you expected.

Only you can decide which property is right for you. Make sure you see plenty of homes before you decide which one you want to make an offer on. Like much of the homebuying process, you can do a great deal of your house hunting online.

Once you find a property you like that fits your needs and budget, it’s time to make an offer.

When you decide to  make an offer on a home, you must submit an offer letter in writing. Your offer letter includes details about yourself (like your name and current address), the price you’re willing to pay for the home and more. It will also include a deadline for the seller to respond to your offer.

Most offers also include an  earnest money deposit . An earnest money deposit is a small amount of money, typically 1% – 2% of the purchase price. Your earnest money deposit goes toward your down payment and closing costs if you buy the home. If you agree to the home sale and later cancel, you typically lose your deposit.

Your agent will almost always write the offer letter on your behalf, but you can write it yourself if you choose. Your agent will then get in contact with the seller or the seller’s agent to submit the offer.

From here, the seller can respond in one of three ways:

• Accept the offer: If the seller accepts the offer, you can move onto the next step.
• Reject the offer: If the seller rejects your offer, the ball is back in your court. You can choose to submit another offer or move onto another home.
• Give you a counteroffer: The seller can also come back with a counteroffer of their own. They may change the purchase price or the terms of the sale. You can accept the counteroffer, reject it, or make another counteroffer.

Negotiations may go on for some time after you submit your offer. Let your real estate agent help you manage negotiations – don’t be afraid to walk away if you can’t reach an agreement. Once you and the seller agree to an offer, it’s time to move on to the appraisal and inspection.

Lenders usually don’t require a  home inspection  to get a loan, but you should still get an inspection before you buy a property.

During a home inspection, an inspector will go through the home and specifically look for problems. They will test electrical systems, make sure the roofing is safe, make sure appliances are working and much more. After the inspection closes, the inspector will give you a list of problems they found in the home.

When you receive your inspection results, go over each item line by line and look for major issues. If a home has a serious health hazard (like lead paint or mold), ask the seller to correct the problem before you close. If you can’t reach an agreement, you may want to move on and consider other options. Read over your inspection results with your agent and ask whether they noticed any major red flags.

Bear in mind that you’ll be liable for any major repairs after your sale closes. A clogged toilet or a sink that won’t drain aren’t major issues. However, if your home inspection reveals an expensive problem (like cracks in the foundation or poorly installed windows), you may want to reconsider the purchase.

It’s common for homebuyers to include a home inspection contingency in their purchase offer. A contingency gives buyers the option to back out of a purchase (or negotiate repairs) without losing their earnest money deposit if the home inspection reveals major issues with the home.

A  home appraisal  is a review that gives the current value of the property you want to buy. You must get an appraisal before you buy a home with a mortgage loan.

Lenders require appraisals because they can’t lend out more money than a home is worth. If the appraised value comes back lower than your offer, you might have trouble getting financing. Be thoughtful about your offer and consider contesting the results of the appraisal if you believe the appraised value is too low.

Homebuyers should also include an  appraisal contingency  in their offer. Appraisal contingencies are often drawn up to allow buyers to back out of a purchase (or negotiate a lower price) without losing their earnest money deposit if the home appraises for less than the offer amount. As with inspection contingencies, appraisal contingencies may vary, so make sure you understand the nature of your agreement.

After you view your inspection results, you might want to ask your seller to correct some of the problems you found. You can do this in one of three ways:

• Ask for a discounted purchase price considering the results.
• Request that the seller give you credits to cover some of your closing costs.
• Ask that the seller have the problems fixed before you close.

Your real estate agent will submit your requests to the seller’s agent. If you’re buying a house that’s f or sale by owner (FSBO) , your agent will negotiate with the seller directly. The seller might accept your request, or they might reject it. If your seller rejects your request, it’s up to you to decide how to proceed. If you have an inspection contingency in your offer letter, you can walk away from the sale and keep your earnest money deposit.

You should do a  final walkthrough  in your new home before you close, even if you’re 100% committed to the property. This time allows you to check and make sure that the seller has made the repairs you requested and cleared out the property.

Walk through the home and make sure the seller hasn’t left any belongings. Check your repair areas if you requested them and keep an eye out for pests. You may also want to double-check your home’s systems one final time to make sure everything is in working order. If everything looks good, it’s time for you to confidently move toward closing.

Your lender is required to give you your Closing Disclosure, which tells you what you need to pay at closing and summarizes your loan details, three days before closing. Read through your Closing Disclosure and make sure the numbers don’t vary too much from your  Loan  Estimate, which you would have received three days after your initial application.

Once you’ve reviewed your Closing Disclosure, it’s time to attend your closing meeting. Bring your ID, a copy of your Closing Disclosure and  proof of funds  for your closing costs.

You’ll sign a settlement statement, which lists all costs related to the home sale. This is when you pay your down payment and closing costs. You’ll also sign the mortgage note, which states that you promise to repay the loan. Finally, you’ll sign the mortgage or deed of trust to secure the mortgage note.

After closing finishes, you’re officially a homeowner.