First-Time Homebuying | National Federal Bank

Pre-qualify for your mortgage.

It’s important to establish how much you’re comfortable spending, what you can offer for a down payment, and how much you are allowed to borrow. Pre-qualifying for your mortgage loan involves a preliminary review of your finances. It will help you and your Mortgage Loan Officer determine the price range that best suits your needs. Prequalify Now.

Find a qualified realtor.

Realtors have their pulse on what’s available in your market, in your price range. Looking for your dream home? Working with a realtor is often the easiest way to find it.

Lock in your rate.

You’ve found your home. Now, you’ll work with your realtor to make an offer. You also want to lock in your interest rate. Interest rates can change on a daily basis depending on market expectations, levels of inflation, economic growth, and Federal Reserve policy. Locking in your interest rate allows you to reserve a rate and avoid any fluctuations for a period of time. When you lock your rate, you create an agreement with the lender. The agreement stipulates the number of days for which the interest rate—and any discount points—are guaranteed. Typically, buyers lock their rate 45 days before closing.

Close on your house.

Closing on your home is the last step in the purchasing process. Once you close, legal ownership is transferred form the seller to you and the house is officially yours. During closing, you’ll sign all the papers and pay closing costs. Closing costs are the fees associated with the actual purchase of your house and transfer of the title. Your Mortgage Loan Officer will provide you with a full list of closing costs. Often, they include credit report fees, origination fees, appraisal fees, title search fees, and recording fees.