Buying a house this year? Don’t be afraid of the home loan process! Our first-time home buyer’s guide breaks it down into seven easy steps.

Step 1: Check Your Credit and Finances

The first thing your Lake Region Bank lender (or any lender) will ask you is what your credit score is and how much you make. Before you apply for your mortgage, you’ll want to review your credit score and have an idea of your general financial picture. Gather documents like pay stubs, tax returns, and bank statements so you’re ready to go when it’s time to apply. We’ll need all of these documents to get a clear picture of your financial history.

Step 2: Get Pre-Approved for a Loan

While getting pre-approved for a home loan is an optional step, we highly encourage most first-time home buyers to get pre-approved before they start shopping for a home. Pre-approval helps you understand how much you can afford, narrowing down your search. It also demonstrates to sellers that you’re a serious buyer with your financing lined up. Work with Lake Region Bank to get a pre-approval letter for a conventional, FHA, VA, or USDA loan.

Step 3: Find Your New Home

Once you’ve got your pre-approval letter, it’s time to start shopping! Work with a real estate agent who understands your budget and your goals. Use your pre-approval to guide your search and look for homes that fit your price range and your lifestyle requirements.

Step 4: Explore Down Payment Assistance

Most home loans require a down payment, starting as low as 3 percent on a conventional loan. If saving enough for a down payment is proving to be a challenge for you, we can help. We offer down payment loans through the bank. As a first-time buyer, you may qualify for down payment and closing cost assistance through the Minnesota Housing Finance Agency. We also offer 0 percent down loan through the USDA Rural Development.

Step 5: Make an Offer and Apply for the Loan

Once you have found the perfect property, it’s time to make an offer. Once your offer is accepted, give us a call to officially apply for your home loan. We’ll ask for updated financial information, verify your income, and order and appraisal on your home. Your lender uses the appraisal to confirm that your new home is worth what you’re paying for it.

Step 6: Underwiring and Approval

Once you apply for your loan, the underwriting team reviews the application, your financial documents, and the home appraisal. It is possible that they may ask you for additional documentation during this phase. Don’t worry—this is normal, and we’ll walk you through every step of the way. Once you’re approved, you will be clear to close and we can schedule your closing date.

Step 7: Close on Your Home

At your closing, you’ll sign your home loan documents, pay your down payment as well as any closing costs, and receive the keys to your home. Congratulations! You’re officially a homeowner.

The home loan process can be confusing and stressful. That’s why we created this first-time home buyer’s guide. The Lake Region Bank lending team is here every step of the way to help you make sense of the process and find the financing that works best for you. For friendly, knowledgeable support, get in touch with our lenders today.