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Homebuying 101

Navigating the homebuying process can be overwhelming, but we’re here to help. From understanding mortgages to finding the right loan, we’ll guide you every step of the way to make your first home purchase simple and stress-free.

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How Can We Help You?

At Mutual of Omaha Mortgage, we understand that buying a home is one of the most significant decisions you’ll make. Our mission is to simplify the homebuying process, providing you with the guidance, resources, and expertise you need to make informed decisions at every step. Whether you’re a first-time homebuyer or looking to upgrade, our team is here to help you navigate the complexities of securing the right mortgage for your needs. From pre-approval or pre-qualification to closing, we’re committed to making your homebuying experience as smooth and stress-free as possible.

Homebuying Process

Purchasing a home can seem overwhelming, but understanding the steps involved can make the process much more manageable. Here’s a simplified guide to the typical homebuying journey:

Get Pre-Approved

Before you start shopping for your dream home, it’s essential to get pre-approved for a mortgage. This will give you a clear understanding of your budget and make you a more attractive buyer to sellers. During pre-approval, we’ll assess your financial situation and provide you with a pre-approval letter stating the loan amount you qualify for.

Find a Real Estate Agent

Choosing the right real estate agent can make a big difference in your homebuying experience. Look for an agent who understands your needs, has a deep knowledge of the local market, and is experienced in handling transactions like yours.

Start House Hunting

With your pre-approval in hand, you’re ready to start looking for homes that fit your criteria. Your agent will help you find properties that meet your needs and arrange showings.

Make an Offer

When you find a home you love, your agent will help you make a competitive offer. If your offer is accepted, you’ll enter into a contract with the seller.

Secure Your Financing

Once your offer is accepted, it’s time to secure your mortgage. We’ll help you choose the best loan program and lock in your interest rate. You’ll also need to provide any additional documentation required for loan approval.

Home Inspection & Appraisal

A home inspection is an essential step to identify any potential issues with the property. An appraisal, required by your lender, will determine the home’s value to ensure you’re not overpaying.

Closing

During closing, you’ll sign the final paperwork and pay any closing costs. Once the documents are signed, you’ll receive the keys to your new home and can officially celebrate being a homeowner!

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Get the Loan That’s Right for You

Choosing the right mortgage loan is crucial for your financial future. Here are some of the most common mortgage loan programs available:

Conventional Loans

Fixed-Rate Mortgages:

With a consistent interest rate over the life of the loan, fixed-rate mortgages are ideal for buyers looking for predictable monthly payments.

Adjustable-Rate Mortgages (ARMs):

ARMs offer lower initial rates that adjust periodically based on market conditions. They can be a good option if you plan to move or refinance within a few years.

Government-Backed Loans

FHA Loans:

Backed by the Federal Housing Administration, FHA loans are ideal for first-time homebuyers and those with lower credit scores. They offer lower down payment options and more flexible qualification requirements.

VA Loans:

Available to eligible veterans, active-duty service members, and surviving spouses, VA loans offer benefits such as no down payment, no PMI, and competitive interest rates.

USDA Loans:

Designed for low- and moderate-income buyers in eligible rural areas, USDA loans offer no down payment and low interest rates, making homeownership accessible in rural communities.

Jumbo Loans

Jumbo loans are designed for buyers looking to finance high-value properties that exceed conforming loan limits. These loans require a higher credit score and larger down payment but can accommodate borrowers with unique financial needs.

Conforming Home Loans

Conforming loans adhere to the guidelines set by Fannie Mae and Freddie Mac, offering lower interest rates and fees compared to non-conforming loans. These loans are ideal for borrowers who meet specific income and credit requirements.

Our loan officers at Mutual of Omaha Mortgage are here to help you find the loan that best fits your financial situation and homebuying goals. We’ll work with you to compare options and choose the one that provides the most benefits.

Mortgage FAQs

Pre-qualification is an informal process where you provide basic financial information to estimate how much you can afford. Pre-approval, on the other hand, involves a more in-depth review of your finances and provides a conditional commitment from the lender on the loan amount you can borrow.

The down payment required varies based on the loan type. Conventional loans typically require 5-20% down, while FHA loans can be as low as 3.5%. VA and USDA loans offer no down payment options for eligible borrowers.

Closing costs are fees associated with finalizing your mortgage. They include expenses such as appraisal fees, title insurance, and lender fees. These costs typically range from 2-5% of the home’s purchase price and are due at closing.

Mortgage insurance protects the lender if you default on your loan. It’s required for FHA loans and conventional loans with a down payment of less than 20%. VA loans do not require mortgage insurance, but a funding fee may apply.

Choosing the right mortgage depends on your financial situation, how long you plan to stay in the home, and your long-term goals. Our loan officers can help you evaluate your options and make an informed decision.

Yes, there are mortgage options for borrowers with less-than-perfect credit. FHA loans, for example, have more lenient credit requirements. It’s best to speak with a loan officer to understand your options and what steps you can take to improve your creditworthiness.

The mortgage approval process can take anywhere from 30 to 45 days, depending on your financial situation and the complexity of the loan. Being prepared with all necessary documents can help speed up the process.

Yes, most loans allow for early repayment without a penalty. Paying off your mortgage early can save you money on interest over the life of the loan. Check your loan terms to see if any prepayment penalties apply.

Additional Resources

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Buyer’s Market or Seller’s Market? 10 Key Indicators Every Agent Should Track

The real estate market is constantly shifting and understanding whether it favors buyers or sellers is important for real estate agents and mortgage professionals ... Read more
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Beyond the List Price: Understanding the True Cost of Homeownership

When buying a home, many prospective buyers focus on the list price—the upfront cost of purchasing a property. However, the true cost of homeownership ... Read more
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How to Help Clients Understand & Adapt to Market Shifts

The real estate market is always evolving, and as a mortgage professional, one of your most valuable roles is helping clients navigate these shifts ... Read more

Let Us Help You Find the Perfect Loan

Our loan officers at Mutual of Omaha Mortgage are here to help you find the loan that best fits your financial situation and homebuying goals. We’ll work with you to compare options and choose the one that provides the most benefits.