Using Our Process

The Home Purchase Process

Buying a home can be an exciting time in your life, and it can be easy when you know the right steps to take.

Citizens Bank wants to help you understand the entire process—from finding the mortgage that's right for your unique situation to being prepared for a smooth closing. And be assured—we're here to help you every step of the way.

Our Process

1. Get pre-approved. You'll receive a pre-approval decision in as little as 20 minutes! Contact us and we'll give you a same-day loan decision, guaranteed — or we'll pay you $250.
2. With over 100 products to choose from, we'll find the loan that's right for you. For added peace of mind, we offer Pre-Purchase Rate Protection, which safeguards your interest rate against market fluctuations and gives you the option to lock in a lower rate if rates drop.

Here's an overview of how the entire home buying and mortgage process works. For a more detailed explanation, see our article "Frequently Asked Questions: Home Mortgage", or call an experienced Citizens Bank Mortgage Loan Officer at (877) 297-3618.

Determine how much you can afford

This is an important first step on your road to home ownership. Three key costs to consider are:

• Down payment — The part of the property purchase price paid in cash and not financed with a mortgage. One thing to consider is that the larger your down payment, the lower your monthly mortgage payments will be.
• Closing costs — Cash due at closing for expenses you and the seller pay to complete the transfer of ownership. Closing costs are typically based on the home price and vary according to location. They might include an origination fee, attorney's fee, initial escrow payments, and charges for obtaining title insurance and a survey.
• Monthly payments — When you are approved for a mortgage loan, you make a commitment to pay back the loan on a monthly basis. Your payment is based on both the principal — the amount of the loan — and interest — the amount you pay to borrow money, calculated as a percentage of the amount borrowed. It also includes money that may be held in escrow for taxes, homeowner's insurance and mortgage insurance.

There are a variety of loan options that can reduce or increase each of these costs. Use our affordability calculator to help you determine the amount you're comfortable spending. Then talk to one of our Citizens Bank Mortgage Loan Officers, who will help you find the mortgage that's right for you. Call (877) 297-3618.

Get a pre-approval loan decision

Take a few minutes to call us for a pre-approval decision and your home buying experience will be easier from start to finish. Once you're pre-approved, we'll immediately fax or e-mail a pre-approval letter with your loan amount, so you can start house hunting right away. In fact, most real estate agents will ask you to get a pre-approval before they show you homes. You and the agent won't waste time looking at houses that are too expensive because you'll know for sure which houses are in your range. You'll place every bid with confidence because you'll have the letter—and the financing—to back it up. All of which helps you stay more focused on finding the dream home you can make a reality. For added peace of mind, we offer Pre-Purchase Rate Protection, which safeguards your interest rate against market fluctuations and gives you the option to lock in a lower rate if rates drop.* And as we promised, we'll give you a pre-approval loan decision in as little as 20 minutes. For more information, call (877) 297-3618, or click here to get started online.

Make an offer

Once you find the home you want, your real estate agent can provide you with a list of comparable homes (known as "comps") recently sold in the area. Comps help you determine the right price to offer. There are other factors to consider, including the condition of the home, the cost of necessary repairs, and your or the seller's time restrictions. Any offer you make could become legally binding, so consult with your agent beforehand.

The loan commitment

The loan commitment takes place once we approve the loan and the property itself. That means a home appraisal ensuring that the home meets our guidelines, and a title search ensuring there are no outstanding liens on the property are needed.

Home inspection

Your offer should contain provisions for a home inspection by an accredited home inspector and an outline of actions to be taken if problems arise. The inspection should cover interior and exterior structural elements as well as heating/cooling, and electrical and plumbing systems. It's a good idea to be present during the inspection so you can ask questions about the property.

Closing

At the closing, you and the seller transfer funds and sign all applicable paperwork to finalize the transaction. Real estate agents, closing agents, attorneys, and mortgage and title representatives may also be present. We'll help you prepare for closing. This includes providing you with an estimate of any fees due at the closing.

And as we state in our guarantees, we'll meet your requested closing date or we will reduce your interest rate by 1/8 of one percent for the life of the loan.** Once the papers are signed and the fees are paid, you'll get the keys to your new home. Congratulations!

Get started now

The support of Citizens Bank and the simplicity of working with us adds up to a home buying process easier than you ever imagined. For more information, call (877) 297-3618, or click here to get started online.

*If you have selected a property and lock between five and 60 days prior to closing.

**Approved, conventional, purchase loans only, using our preferred closing agent. Excludes loans for REO homes. Void when delayed closing is required by law. Closing date to be mutually agreed upon between customer and us, and customer must provide all required documentation. Timely request for adjustment under guarantee is required.