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. Ameriprise Bank, FSB can 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 service guarantee

We're confident in our ability to deliver superior service. That's why we offer industry-leading service guarantees on pricing, same-day loan decisions, and on-time closings. 

• Best price - We'll beat any lender's price or pay you $500.¹
• Same day loan decision – Receive a same-day loan decision or we'll pay you $250.
• Closing date - We'll guarantee to meet your closing date or we'll reduce your interest rate by 1/8 of one percent for the life of your loan.²

Get pre-approved

A pre-approval decision will make your home buying experience easier from start to finish.  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 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.

With a wide variety of products to choose from, we'll help you find the loan that's right for you and work with you through the pre-approval process. Once you're pre-approved, you will receive a pre-approval letter with your loan amount so you can start house hunting right away.

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. ¹

Determine how much you can afford

This is an important step on your road to home ownership. In addition to your pre-approved amount, consider these three key costs:

• Down payment — The down payment is 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 — Closing costs are typically based on the home price and vary according to location.  This amount is due in cash at closing for expenses you and the seller pay to complete the transfer of ownership. 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 Ameriprise Bank Mortgage Loan Consultants, who will help you find the mortgage that's right for you.

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. ²

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 Ameriprise Bank, FSB and the simplicity of working with us adds up to a home buying process easier than you ever imagined.