Buying your first home is a major investment. But it doesn’t have to be a major headache. By working with your Old National mortgage loan originator and arming yourself with information in this guide, you can create a rewarding, stress-free home buying process.
As a general rule, your mortgage payment (including taxes, insurance and association fees) should not exceed 28% of your gross monthly income or 36% of your total monthly debt. However, there are many factors that impact these percentages so your best approach is to work with a mortgage specialist to determine how much you can afford. Contact an Old National mortgage loan specialist in your area. Our online mortgage calculators can help too.
Your Old National mortgage loan originator will help you chose the mortgage that best suits your needs. Multiple mortgage varieties are available - from loans specifically designed for entry level buyers to jumbo and construction loans. Learn more about the types of mortgage loans available.
The mortgage you choose impacts how much home you can buy and whether you have to pay Private Mortgage Insurance (PMI), which is normally required when the down payment is less than 20%. An Old National mortgage loan specialist can help you understand the benefits of your options and select the right solution for your life and budget.
Mortgage lenders can pre-qualify you for a home loan before you start looking at homes. Our lenders will help you determine what type of home loans best suit your situation and will describe the features and benefits associated with each mortgage option. The process is quick and easy, with an answer in minutes. Once you are pre-qualified for a mortgage:
Now that you've been pre-qualified, you're ready to hire a real estate professional. If possible, have your agent sign a buyer’s agent contract. You want someone who works for you so signing a buyer's agency agreement is critical.
How do you find a good real estate agent? Ask around and don't be afraid to talk to more than one. Are they experts in what you want and need? Will they guide you through the process? Do they listen?
How important is it to be hear a good school? What about commute time to work or shopping? Do you mind a bustling neighborhood or do you prefer privacy? It's difficult to find everything you desire, so it's crucial to prioritize.
Do you prefer a two-story or a ranch? Can you make do without a garage? And if you're shopping as a couple, are you really in agreement? It’s rare to find a house that has everything you want, so a smart approach is to make a list of must-haves and & like-to-haves.
When you’re touring prospective homes, don’t get sidetracked by paint color, wallpaper patterns, decorations and furniture. Instead, focus on things that cannot be easily or inexpensively changed, like:
Your buyer's agent can help you understand the conditions in your market (are homes selling quickly or slowly?), along with comps in the area to help you determine an appropriate dollar figure for your initial offer. Your buyer's agent will negotiate on your behalf. Negotiations are part of the process and a good buyer's agent will help you get the best deal possible.
Now that you have an accepted offer, there are several things you'll need to do.
Generally, you, along with the seller and realtors, will gather at a closing company. You will sign documents and provide your check. When all of the documents have been signed, and all funds have been properly distributed, the deed of ownership and keys will be transferred to you!