Buying a house

A down payment is the portion of your home’s purchase price that you pay in cash up front to get your loan. Many people believe you need a 20% down payment to buy a home, but there are many mortgage options that allow you to put down less. In fact, Wells Fargo has a 3% down payment option on a fixed-rate loan and low or no down payment for qualified borrowers.

With a low down payment, mortgage insurance will be required, which increases the cost of the loan and will increase the monthly payment.

Talk with a home mortgage consultant about loan amount, loan type, property type, income, first-time homebuyer, and homebuyer education requirements to discuss eligibility.

Check out our first-time homebuyer resources for more information or contact one of our home mortgage consultants to help find the mortgage solution that works best for your needs.

Choosing when to buy a home is a very personal decision that will depend on many factors. A home is the largest purchase most people will make in their lifetime, so preparation is key.

The following questions can help you determine if you’re ready to make the leap:

• Do you have a stable source of income?
• Are you budgeting for your monthly bills?
• Do you know how much you can afford for monthly mortgage payment?
• Once purchased, how long do you plan to stay in your home?

Once the offer you make on a property is accepted, one of the first steps you’ll want to take is scheduling a home inspection with a professional home inspector. This inspection is usually at your expense and may be included in your closing costs.

A home inspector looks at aspects of a property – inside and out – and completes a report that reveals valuable information about its condition. It’ll help you spot issues that need to be fixed such as worn-out roofing or heating and air conditioning systems that may require replacement. Once the inspection is completed, your home inspector will provide a detailed inspection report, usually a day or two after the inspection.

Based on the inspection report, you can decide to negotiate repairs into the sales contract and ask the seller to make them or adjust the sales price to compensate the repair costs. As a condition of the sale, your lender may require a final inspection to ensure that repairs have been made. For more information, connect with your home mortgage consultant.

Mortgage prequalification is a simple process that uses your income, debt, and credit information to let you know how much you may be able to borrow. Getting prequalified before you shop for homes can help you:

• Focus your search — Establishing  your price range up front means you can target the right homes in your search.
• Move forward confidently — When it's time to make an offer, you'll have the confidence of knowing you can back it up.
• Know your options — Seeing the loan amount, interest rate, and monthly payment you could qualify for means you'll be able to make the mortgage decision that works best for you.