What Do You Need to Purchase a New Home?
In a world where things are constantly changing, the one thing you can rely on is the many benefits of homeownership. A home will always be a great investment for your future, and it’s never too soon to prepare for that big step. If you’re anticipating buying a home in the Savannah area in the near future, it’s all a matter of being prepared. The friendly, knowledgeable team at Ernest Homes can’t wait to help you become a homeowner!
How To Begin Your Journey to Buying a Home
Becoming a homeowner is an exciting time, but the process can be trickier than expected for first-time buyers. There are a few important steps you’ll need to take to prepare — especially getting your financial information organized and ready.
- Check your credit score. Many first-time home buyers worry their credit score may be too low to qualify for a mortgage, but some mortgage programs don’t require a minimum score. The three credit bureaus must provide one free credit report per year. Check your score early so you have time to correct any mistakes.
- Determine what you can afford. Lenders use your debt-to-income ratio to determine your borrowing limit. Budgeting for the home-buying process includes:
- How much you can contribute to a down payment
- Your expected closing costs
- Your preferred monthly mortgage payment
To buy a home, lenders will also require:
- Proof of employment
- Financial history
- Monthly income documentation
- Debt information
- Have a plan. Many conventional loans require a 20% down payment, but there are alternatives. USDA and VA loans require no down payment, FHA loans offer lower down payments, and HUD provides state-specific programs. Be sure to keep funds stable in your account for 60–90 days before applying.
- Get your documentation together. Mortgages require extensive paperwork. Gather these documents in advance:
- W-2 forms or business tax returns (2–3 years)
- Personal tax returns (2–3 years)
- Recent pay stubs
- Credit card and loan statements
- Bank statements
- Previous 5–7 years of addresses
- Brokerage statements (2–4 months)
- Recent retirement account statements (401k, etc.)
- Get pre-approved. Meet with your lender or mortgage broker and bring all documentation. Your lender will determine how much you can borrow and at what rate.
- Start shopping. After pre-approval, you can confidently look for homes that meet your needs and budget — without wasting time on homes outside your price range.
- Prepare for Closing Day! Before closing, make sure you have:
- Government-issued photo ID
- Final payments/closing funds (confirm payment method)
- Proof of homeowners insurance
- Closing Disclosure (compare with final paperwork)
- Home inspection reports
Ernest Homes has over 30 years of experience helping Savannah home buyers. Our homes are located in desirable, growing areas with excellent schools, employment opportunities, and family-friendly communities. When you’re ready to take the next step, we’re here to guide you every step of the way. Connect with us today to get started.
