10 Most Important Steps You Need To Know When Buying a Home

10 Most Important Steps You Need To Know When Buying a Home

The 10 STEPS in the Home Buying Process

The 10 STEPS:

  1. Mortgage
  2. Credit
  3. Costs
  4. Documents Needed
  5. Down Payment
  6. Inspection
  7. Appraisal
  8. Time Frame
  9. Title Insurance
  10. Closing


  • Unless you have the CASH to purchase the home you will need a Mortgage.  Finding the BEST Mortgage can be as challenging as it is to find the Home of your dream.  The BEST option in this are would be to seek a Credible Mortgage Broker.  Why a Mortgage Broker?  In studies, it was found that Mortgage Brokers can offer the Best Rates with the Lowest costs.  Mortgage Brokers also have more options than traditional banks.  Do your Homework during this process because it can save you a lot of grief as well as money.



  • Your Credit Score is one of the BIGGEST factors when it comes to getting Approved for a Mortgage as well as determining your Interest Rate.  There are over 20 variations of Credit Scores that most people do not realize.  I created www.CreditScoresandMore.Com to explain Credit Scores and advice on how to get a Free Credit Score as well as Credit Counseling and Repair.


  • The cost of your mortgage depends on your credit score, the type of loan you choose, and the fees and other closing costs charged by your lender.  Here is a breakdown of the Average Closing Costs in Illinois:
Illinois closing costs
Origination fees charged by lender $1,085
Third-party fee $1,237
Taxes $610
Total $2,933
City Chicago
Loan amount $200,000
Itemized origination fees charged by the lender
Origination points $386
Commitment fee $370
Document preparation $58
Broker, originator or lender $868
Processing $857
Tax service $81
Underwriting $525
Itemized third-party fees
Appraisal $448
Attorney, closing or settlement $512
Credit report $25
Flood certification $10
Postage/courier $100
Survey $463
Borrower’s share of state and local transfer taxes and fees $1,875
Mortgage tax $0
  • Many of these Fees can be eliminated by choosing to work with a Mortgage Broker:  For Example, I am a Mortgage broker in Chicago and Fees that we do NOT charge our clients from the above list are:  Origination Points:$386   Commitment Fee:$370  Document Preparation:$58  Broker:$868   Processing:$857 Underwriting:$525

My clients save on average $3,064 because I do not Charge these Fees


Documents Needed:

Depending on your situation, here are seven documents you may need when applying for a Mortgage

  • Tax returns. Mortgage lenders want to get the full story of your financial situation. …
  • Pay stubs, W-2s or other proof of income. …
  • Bank statements and other assets. …
  • Credit history. …
  • Gift letters. …
  • Photo ID. …
  • Renting history.

Down Payment:

  • FHA loanDepending on property location and other, personal factors, you could qualify for a home loan from the Federal Housing Administration. In most cases, you’d be expected to make a down payment of approximately 3.5%
  • VA and USDA loansCertain veterans, active members of the military, and qualifying residents of designated rural areas can qualify for a 0% down-payment housing loan
  • Conventional: Depending on your credit score Conventional Loans have Down Payment requirements of as low as 3%.



  • The standard home inspector’s report will cover the condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows, and doors; the foundation, basement, and structural components.


  • A home appraisal is an expert opinion of a home’s value and it ensures the lender that their loan will be well-spent, or at least up to par with the agreed selling price. Since the buyer is borrowing from the bank, they will cover the cost of the home appraisal.

Time Frame:

  • The entire mortgage process has several parts, including getting pre-approved, getting the home appraised, and getting the actual loan. In a normal market, this process takes about 30 days on average, says Fite. During high-volume months, it can take longer—an average of 45 to 60 days, depending on the lender.

Title Insurance:

  • Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. The vast majority of title insurance policies are written on land within the United States.


  • The “closing” is the last step in buying and financing a home. The “closing,” also called “settlement,” is when you and all the other parties in a mortgage loan transaction sign the necessary documents.


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Regulatory Information: Nationwide Multistate Licensing System's Consumer Access Website" (www.nmlsconsumeraccess.org), Premier Financial Services, Inc. NMLS #266214. The State of Illinois | Division of Banking located at 100 W Randolph St, Chicago, IL 60601 (312) 814-4500 | NMLS # 266214 Dan Frio NMLS 246527