Purchasing a Home
Education | Resources | Tips
Wondering if you’re qualified?
When considering how to buy a house, the first step is to get pre-qualified with GMFS Mortgage before you start your search for your dream home. Being pre-qualified gives sellers the peace of mind knowing you will be able to finance the house after the purchase contract is signed, which can improve your negotiating position over other buyers.
Contact a GMFS Mortgage Loan Officer today!
Home Purchase Loans:
- A Conforming Fixed Rate loan can be used to refinance your home
- FHA loan is typically the most flexible mortgage product with lower minimums for down payment and credit score, while allowing a higher debt-to-income (DTI) ratio
- USDA Rural Development loans offer 100% financing for properties in eligible rural area designated by USDA and can be used to purchase your primary residence or refinance for rate term
- VA loans are typically the best option for first time home buyers if one of the borrowers is a U.S. military veteran
- 100% Financing (No Down Payment) home loan options
- See more Loan Options (e.g. First Time Buyer, Second Home/Investment property, etc.)
Resources for Home Buyers
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- Home Loan Process
- Calculate: How much mortgage can I afford?
- Calculate: How much mortgage can I qualify for?
- More Calculators
- First Time Home Buyers
- Mortgage Educational Resources
- Providing Requested Documents
- Home Buying Education Articles (independent 3rd party)
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Customer Reviews
Adam and his team at GMFS were a pleasure to work with. The most important thing to me is communication and Adam called us all the time to make sure we had all the information needed. It’s in the slogan and it’s true, GMFS changed my life!
Ryan Larussa is a very very good realtor. He was very patient with me as I stressed out about moving to Baton Rouge from Shreveport and buying a condo. He met with me regularly and gave me good advice on explaining why I was keeping my townhouse in Shreveport. I have had a very good experience with the mortgage provider and insurance agent and that is due to Ryan’s work. I would recommend him to others and have asked him to be my realtor when I move back to Texas.
Unbelievable experience with GMFS. Adam made the entire process completely painless, and made sure I was informed and taken care of the entire way through. Everyone who helped along the way treated me like family, and I’ll definitely be back for my next mortgage. 10/10 recommend to anyone and everyone.
“Changing Lives” is not just part of the company slogan. Bryan Sparacino is one of a kind, and I am so blessed that he helped walk me through the financing process during such a crazy time in the market. Trusting the GMFS team proved to be of tremendous value as I navigated purchasing a home in a different state. Bryan’s experience and knowledge of products, processes, and the marketplace were the difference makers in getting my loan closed quickly and efficiently. As we start a new chapter, in a new state, in our new home, our lives have been forever changed because of Bryan Sparacino and the GMFS team. Thank you for EVERYTHING!
Working with Ashley to close on our new home was awesome. Ashley was so helpful and reliable through the entire process, making everything run so smooth. She made herself available anytime we needed, including weekends. I would definitely recommend Ashley and GMFS mortgage to everyone.
Tips & Checklist for Buying a Home
1. Start saving for your down payment as early as possible
Even though there are many options that allow as low as a 5% down payment, it is significantly better to have more money up front than less. Be sure to know how much home you can afford before determining how much money you have to save. If you plan to only save 5% of your down payment, keep in mind that 5% of $200,000 is $10,000. In addition, Putting down less than 20% may mean higher costs and paying for private mortgage insurance (PMI). Know how much down payment you need, set a goal, and work hard to reach that goal.2. Check your credit score
Your credit score is one of the key factors in determining what type of mortgage and the interest rate for which you qualify. As soon as you know you may want to buy a home, begin work on your credit score. Dispute any errors on your credit report and get them resolved as quickly as possible. Also, do NOT open nor close any accounts within at least six months of applying for a mortgage.3. Budget for closing costs
Whether you plan to pay for the closing costs up front or are planning to roll them into your mortgage, you need to have an idea of how much your closing costs will be. Be sure to do some research yourself and shop around and compare prices for certain closing expenses, such as homeowners insurance, home inspections and title searches. Also, never be afraid to ask the seller to pay for a portion of your closing costs or negotiating your real estate agent’s commission. Closing costs typically run between 2%-5% of the total loan amount.4. Budget for move-in costs
In addition to insurance, inspections, home title, real estate agent’s commission, and all of the other costs involved in buying a home, many people forget that the actual moving process costs money. Be sure to save enough money for things such as cleaning supplies, food to restock your cabinets and refrigerator, new rugs, paint, and anything that you would like to change cosmetically to the home.5. Know what type of property you want to buy
Now that you have your budget, it’s time to consider what type of property you want to purchase. If you already have your heart set on a single-family home, then you know you’ll be getting a lot more room with more maintenance. On the flip side of that, you may want to have less work and more amenities, which would steer you toward a condo or town-home.6. Research mortgage options
Did you know that a 30-year, fixed rate mortgage isn’t the only option for purchasing a home? If you can afford larger monthly payments, you can get a lower interest rate with a 20-year or 15-year fixed loan. Or you may prefer an adjustable-rate mortgage, which is riskier but guarantees a low interest rate for the first few years of your mortgage. Speak with a GMFS Mortgage Loan Officer to determine what is best for you and your future. Loan Options7. Know the difference between mortgage preapproval and mortgage prequalification
Pre-Approval: Getting preapproved for a home loan requires more documentation, verification and time than a mortgage prequalification process.- Requires complete mortgage application (excluding property address)
- Credit report pulled
- Information submitted to automated underwriting system
- Borrower provides documentation of income and assets (e.g. paystubs, tax returns, bank statements, etc.)
- Lender reviews and verifies all information
- Lender issues a Preapproval Letter subject only to:
- a satisfactory property appraisal
- general closing conditions (e.g. evidence of hazard insurance)
- No material change in information used to issue pre-approval (e.g. new debt, job loss, etc.)
Pre-Qualification: Getting a mortgage prequalification is a simpler process than getting a home loan preapproval and yet still demonstrates you are serious about buying a home to both realtors and sellers.- Requires discussion with mortgage lender about your monthly income and liabilities
- Credit report may be pulled
- Does NOT include submitting a full mortgage application, income documentation nor any verification
- Lender issues a Prequalification Letter based on what you have told them
At GMFS Mortgage, we find that the vast majority of our borrowers opt for getting prequalified for a mortgage because it is a faster process than getting pre-approved for a mortgage and therefore allows you to begin shopping sooner for your dream home knowing your prequalification letter allows them to make purchase offers with confidence.
8. Hire the right realtor
Buying a home is stressful enough without having to do your realtor’s job. You need to hire someone who you can get along with and who will work for you! The right realtor should know exactly what you’re looking for, take you to open houses, and schedule home viewings around your schedule.9. Stay under your preapproved or prequalified approval limit for your home loan
Understand that while you can technically buy a home for your maximum pre-approved or prequalification amount, it is the ceiling of your mortgage limit. Instead of maxing out that amount, leave some room for unexpected expenses.10. Consider more than the obvious
How long will this home and location meet your family’s needs?
Is the property in a flood zone?
Is there any pending new construction or zoning changes that may effect your property value or view?
Is there any pending new construction or zoning changes that may effect your commute time?
What is the area like after dark, after a heavy rain and during other seasons?
Have you researched crime reports and statistics for the area?
How important is the quality of local schools to you and to potential future buyers?
If new construction, have you properly budgeted for window treatments, furniture needs, fencing, yard care, landscaping, etc.?
If there is a Home Owner’s Association have you considered the cost of dues and understand the community rules & restrictions?
If the home is more than 9 years old, are you prepared for potential major maintenance costs (e.g. appliances, AC, pool, roof, etc.)?11. Be prepared to compromise
Don’t get caught up in the paint color, the blind choices, or the terrible wall paper choice. These things are easily and inexpensively changed after buying a home. Think carefully about what is a need and what is a want when negotiating. You NEED to make sure the seller replaces the broken air conditioner, you WANT the color in the living room to be almond instead of yellow.12. Make a strong offer, but prepared to negotiate
Your realtor should be experienced and will guide you through the negotiation process. A lot can be up for negotiation in the homebuying process, which can result in major savings. Are there any major repairs you can get the seller to cover, either by fully handling them or by giving you a credit adjustment at closing? Is the seller willing to pay for any of the closing costs? Will it be mutually beneficial to you and the seller to either close sooner or later than normal? If you’re in a buyers market, you may find the seller will bargain with you to get the house off the market. During negotiations try to keep your emotions in check and not take things personally, keeping in mind that at some time in the future your role may be opposite and as a seller you will want to maximize the price you can get for your home.13. Don't forget homeowners and flood insurance
Before you close on your new house, your lender will require you to buy homeowners insurance. Shop around to compare for the best price offering the most coverage with a deductible that makes sense for you. Keep in mind that homeowners insurance is not the same as flood insurance. Even if flood insurance is not required for your property, consider the peace of mind offered for the low annual cost. Note that most flood insurance policies only cover your main home structure (not detached buildings) and that contents coverage is typically an optional add-on.14. Know what is included on your home inspection
After your offer is accepted, you will need a home inspection. However, not all inspections test for mold, radon, pests, etc. Be sure to know what’s included. Don’t be afraid to ask your inspector to take a look — or a closer look — at something and ask questions. In addition to a professional home inspection, conduct your own inspection. Is the water pressure adequate upstairs? Will you need to replace some flooring? Are there any leaky faucets? Any electrical issues with lots of appliances running at the same time? Any evidence of termite damage or treatment? Any evidence of water damage to the interior/attic ceilings, walls or floors?
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GMFS staff has an avg. of 14+ years of mortgage industry experience
Not a commitment to lend. All loans subject to credit and property approval. The following terms are for illustrative purposes only. Rates, payments, and loans terms vary by consumer based on their individual qualifying information. The payment amount illustrated does not include the amounts for taxes, property insurance, or mortgage insurance.
A 30 year fixed rate loan with 360 equal payments, at a 90% LTV loan, resulting in a 10% down payment, and an annual percentage rate of 4.75% will have a monthly principal and interest payment of $1,043 per month. This payment does not include the amounts for taxes, property insurance, or mortgage insurance.