Buy Your First Home

Let's get you home.

Buying your first home comes with a lot of questions and big decisions – we'll help you through it.

Does your dream work with your budget?

Start with a rate and payment estimate.

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What you need to know

Expand How much can I afford?

You may qualify for more than you want to spend. Use our loan calculators to estimate what you can afford and what you are comfortable spending. Then, talk to a mortgage advisor about your next steps, including:

  • Prequalification
    • To get prequalified, you will need to provide your basic debt, income and asset information; we will obtain your credit report
    • By the end of your conversation with your advisor, you'll know how much you prequalify for and how much you can afford
  • Identify your home expenses
  • Know your home loan options
    • Research the mortgage options available and which works best with your budget and home-buying goals
    • Call a TD Bank mortgage advisor at 1-800-822-6761 to talk about which mortgage is best for you
Expand How do I prepare for my mortgage application?
  • Get your credit report
  • Don't make any major purchases
    • Hold off on making any big purchases, such as a car or furniture, until after your closing
    • Taking on significant new debt now can impact your mortgage loan decision and how much you can borrow
  • Start saving pay stubs and other documentation
    • Start collecting the documents you may need to apply for your mortgage
Expand What's the mortgage application process?

Applying
What you do:

  • You will need a signed purchase and sale agreement to start your application
  • Gather all documentation, such as personal identification, financial and income information, etc.
    • If you are building your home, you'll need to have a signed construction or purchase contract with your builder or developer, and it should include – contract amount, cost of construction and land (if applicable) and construction start and completion dates

What we do:

  • Work to give you a conditional decision within 24 hours of submitting your application
    • If you are conditionally approved, we will send you a conditional approval letter
  • Contact you to review your loan conditions, documentation and next steps
  • Provide you with a Loan Estimate of your closing costs within 3 business days of submitting your application
  • Schedule a tentative closing date within 30-45 days of submitting your application

Processing
What you do:

  • Send us any additional requested information by the date on your conditional approval letter

What we do:

  • Process your application (once we have all your documentation)
  • Review your credit report
  • Verify your information

Inspection
What you do:

  • You or your real estate professional arrange for a home inspection – the inspector will meet you at the property you are purchasing
  • You may also choose to have additional tests done (air, water, pest, etc.)
  • Pay the inspector and/or service providers directly at the time the service or test is completed (these expenses are not paid at closing)

Appraisal
What you do:

  • Review the appraisal once it is completed and shared with you

What we do:

  • Schedule a licensed appraiser to visit the property you want to purchase
    • Once we receive the appraiser's report, we verify that your loan amount doesn't exceed the property's value
    • A copy of the appraisal is included in your mortgage closing document and the appraisal fee is included in your closing costs
    • Note: the appraisal process is different if you are building your home

Underwriting
What you do:

  • Provide any additional information we need to finalize the review process

What we do:

  • Our underwriter receives and reviews all the information provided and makes sure all the loan guidelines have been met
  • Work with a title company to research the property's title and make sure the property is legally cleared for transfer of ownership

Closing
What you do:

  • The closing agent will contact you with a closing date and time, and what you will need to bring to the closing (such as personal identification, check for closing costs, etc.)
  • 3 days prior to your closing, you will receive the Closing Disclosure that will provide the final terms of your loan and the closing costs
  • The exact amount you will be required to bring to closing will be on the Closing Disclosure. You will be instructed to get a certified check or a bank check for that amount – we will tell you who the check should be made out to

What we do:

  • Work with the title company and real estate professional to finalize and schedule your closing date
  • Prepare all documentation for you to sign during your closing
  • Help you finalize the purchase and get you in to your new home
Expand How do I make an offer on a new home?

When you've found the home you want, you'll need to enter into a written contract with a written offer. Working with a real estate professional can simplify this entire process. Your real estate agent will:

  • Provide you with standard forms that comply with state and local laws
  • Guide you on your offer amount based on comparable home sales in that area
  • Present your initial offer and any counter offers to the seller and assist you with negotiations

The written offer includes:

  • Purchase offer: This written proposal specifies the price you're willing to pay, as well as all the terms and conditions of the purchase
  • Earnest money: This is money you put toward your new home with your purchase offer to show the seller your commitment to the offer
    (A real estate professional or attorney usually holds your earnest money and that money becomes part of your downpayment, or is returned to you if your offer is declined)
  • Negotiation: Your realtor can help prepare you for the back-and-forth with the seller on both the amount of your offer, as well as terms and conditions of the purchase
  • Purchase agreement: Following any negotiation and modifications to your purchase offer, once a final price for the home is reached, you and the seller both sign off to create a final binding contract; this is the document you will need to start your mortgage application
Expand How much do I need to buy my new home?

Almost everyone who purchases a home has to put money down at the time of the mortgage closing. The amount of money you'll need will usually cover these fees and expenses:

  • Inspections: You will likely have a home inspection, and possibly air, water and/or soil tests done on the new home; you will cover the costs for these and pay the service providers directly at the time of service
  • Downpayment: Typically ranges from 5% to 20% of the purchase price
    • If your downpayment is less than 20%, you may be required to purchase private mortgage insurance and, depending on your loan, you may be required to pay your first premium as part of your closing costs
    • Talk to your mortgage advisor about options to pay for your downpayment
  • Closing costs: This includes fees paid to state and local governments, as well as bank fees associated with obtaining and originating your mortgage; closing costs typically are 2% to 6% of the loan amount
    • Prepayments: You will have to make initial prepayments of any applicable real estate taxes and insurance, including homeowners, title, flood or private mortgage insurance
    • Points: If you decide to pay points to secure a lower mortgage loan interest rate, that fee will be included in your closing costs
    • Seller concessions: If the seller has agreed to pay all or some of your points or closing costs, the fee(s) will appear as a credit on your closing statement

We will provide you with a Loan Estimate of settlement costs within 3 business days of your mortgage loan application. The closing agent or title company will notify you of your final settlement costs within 24 hours of your closing. You should bring a certified or cashier's check for this amount to your closing.


Have questions? Ready to apply? We're here.

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Talk to a mortgage advisor at 1-800-822-6761

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