How to Buy a House

Five Steps for Buying Your Next Home

Buying a new home is an exciting journey, but it can also feel overwhelming. At eCash Mortgage, we aim to simplify the homebuying process. Follow these five steps to help make buying your next home easier!

1. Decide How Much Home You Can Afford

Estimating your budget is the first important step in buying a house. Your income, savings, current interest rates, property taxes, and homeowners insurance costs are all key factors that influence how much home you can afford. eCash Mortgage offers an affordability calculator to help you determine your budget.

• Explore prequalification and preapproval: Prequalification is generally an initial estimate, while preapproval typically involves a more detailed review. A preapproval letter can help support an offer but is not a guarantee of final financing. Ask eCash Mortgage which step fits your home search.
• Save cash: You'll need funds for a down payment, closing costs, repairs, and moving expenses. Learn how much money you might need to buy a home.
• Read our tips: There are many ways to save money when purchasing a new home. Check out eCash Mortgage's home affordability tips.

✅ Before you start house hunting, see how pre-approval can help you understand your budget and prepare to make an offer. Pre-approval is not final loan approval.

2. Shop for Homes to Buy

Once you know how much you can afford and have saved enough money, it's time to start shopping for homes. Many buyers begin their search online, but here are some tips to guide you:

Choose where you want to live: The location of your next house will significantly impact how happy you are with your purchase. Learn more about how to decide where to live.

Decide what you want: Create a list of features for your next home, including the size, number of bedrooms and bathrooms, yard size, and any amenities you're looking for.

Attend open houses: Open houses provide a great opportunity to explore homes and discover your preferences. Review our open house tips.

Work with a buyer's agent: An agent can help find homes, arrange showings, make offers, and negotiate terms. Review any required written buyer agreement, including the services, compensation, and payment responsibilities, before proceeding.

You can also connect with a local real estate agent through eCash Homes, a partner of eCash Mortgage, and potentially receive Cash Rewards when you buy or sell a home.

3. Make an Offer on a Home

Once you've found the perfect home, the next step is making an offer. Your offer will typically include:

• Purchase Price: The amount you're willing to pay for the home.
• Contingencies: These are conditions that must be satisfied before the sale can close, such as home appraisal, inspection, and title search contingencies. Learn more about contingencies.
• Financing and Proof of Funds: Sellers may request a preapproval or prequalification letter and evidence of funds for the down payment and closing costs. These documents support the offer but do not guarantee final loan approval.
• Earnest Money: Also known as a "good faith deposit," this shows your commitment to the purchase. Learn more about earnest money.
• Other Information: Your offer will typically include details about you, any co-buyers, proposed closing dates, and more.

It's common for sellers to negotiate terms before accepting an offer. A buyer's agent can help guide you through this process.

4. Apply for a Mortgage

After your offer is accepted, provide the purchase contract and complete the property-specific mortgage review with eCash Mortgage. If you started an application or preapproval earlier, update it as needed. Conventional and FHA loans have different eligibility and insurance structures; compare the full costs for your situation rather than assuming one is always less expensive.

5. Get Approved and Close

After submitting your mortgage application and documents, eCash Mortgage will begin reviewing your application. There are a few key tasks you'll need to complete during this stage, such as:

• Home Appraisals: Your lender will determine whether an appraisal or another permitted valuation method is required to assess the property's value and loan eligibility.
• Title Searches: A title search examines ownership and recorded liens or other claims. Any issues that affect closing must be addressed; the search does not guarantee that no claim can ever arise.
• Home Inspection: Inspections help identify issues that you may want the seller to address before finalizing the sale. Learn about home inspections.
• Homeowners Insurance: You'll need to secure homeowners insurance before closing on your mortgage. Shop for insurance to find the best rates. Learn more about homeowners insurance.

Once your mortgage is approved, it's time to close. eCash Mortgage will explain the closing requirements in your state and help you prepare for the closing process. You'll also need to pay closing costs, which we will review with you in advance. Learn more about closing costs.

After closing and completion of the required funding and recording steps, you can take ownership according to the transaction terms. Your mortgage will have scheduled payments. Follow the instructions from your loan servicer to set up online access or automatic payments.

Best of luck as you embark on your home-buying journey with eCash Mortgage!