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.

Some borrowers assume a 20% down payment is required, but many loan options allow you to put down less. In fact, Wells Fargo offers a 3% down payment option on a fixed-rate loan and low or no down payment for qualified borrowers.

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

Choosing when to buy a home is a very personal decision that will depend on many factors. The following questions can help determine if you’re ready to become a homeowner:

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 your offer is accepted, you’ll want to schedule an inspection with a professional home inspector. This 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. This inspection can help you spot issues that should be fixed, such as worn-out roofing or heating and air-conditioning systems that may require replacement. Once completed, your home inspector will provide a detailed report, usually a day or two later.

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 costs. As a condition of the sale, your lender may require a final inspection to ensure that repairs have been made.

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.