Buying a Home

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Buying a home

Understanding the home buying process

Whether you're a first-time buyer or a homeowner looking for a new property, finding the right mortgage is one of the biggest financial decisions in your life. We're here to help you with home buying tips and resources to guide you along the way.

Watch this short video to find out more about each step of the home buying process.

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Home-buying tips

Review your credit reports and find out your credit score before applying for a mortgage
If you need to improve your credit score: continue to pay off outstanding debts, make on-time payments, and avoid taking out new loans or making large purchases
Use our rate and mortgage tool to explore options built for you
Establish a monthly mortgage budget you can comfortably afford. The 28/36 rule suggests spending no more than 28% of your gross income on housing expenses and no more than 36% on all your monthly debt payments combined.

Upfront mortgage costs and fees

Down payment
Closing costs, typically 2-5% of the loan principal
Appraisal and inspection fees, which vary by lender

Recurring mortgage costs

Taxes & insurance (may be paid from an escrow account)
Private Mortgage Insurance (PMI)¹ (included in your monthly mortgage payment if required)

Recurring home ownership costs

Maintenance and repairs
Utilities
HOA dues (if applicable)

A prequalification letter² can help as you look for the right home.

It shows the seller you’re a serious buyer, which can help when you’re making an offer
You’ll know how much you may qualify to borrow, so you can narrow your home search within your price range
It’s quick and free with no obligation if you don’t find the right home for you

To move forward with your mortgage application, we'll need your permission to obtain your credit report. You'll also need to provide additional documents, which include, but are not limited to:

Required

30 days of pay stubs
2 years of W-2s
2 months of bank statements
Contract of sale for purchase transaction
Gift letter (if applicable)
Current property or rental details
Copy of passport or government-issued ID

Employee Verification

Company name
Your position
Start date
Employment letter on company letterhead (if applicable)

Required for International Home Buyers

U.S. Visa
2 years’ history of employment with contact information
2 years’ history of residency

Research neighborhoods to gain valuable housing market insights and find a home that suits your lifestyle and priorities.

Determine a monthly mortgage payment you can comfortably afford. Consider your loan amount, down payment, closing costs, and out-of-pocket expenses.

A home is an investment that may increase your personal wealth. When home values appreciate, you will build equity over time.

Owning

Potential to build equity, which may increase personal wealth
Possible tax advantages³
Down payment and closing costs are required
Homeowner pays for home repairs and maintenance
Option for a fixed principal and interest monthly payment⁴
You decide when it’s the right time to move to another home

Renting

Missed opportunity to build equity
No tax deduction advantages
Security deposit and/or one month’s rent are typically required
Landlord is usually responsible for repairs and maintenance
Rental agreements are not guaranteed over time
You may be bound to the terms of the lease, giving you less flexibility

Useful tools to help you choose the right mortgage

Mortgage products

Today's mortgage rates

Mortgage calculators

Frequently asked questions

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Rate Quote

A Mortgage Consultant will contact you with your personalized rate quote.

Get rate quote

Mortgage financing request

Take the first step to get prequalified² to buy your home.

Get started online

Connect with a
Mortgage Consultant

Call 844.HSBC.MTG (844.472.2684) to speak with a Mortgage Consultant to learn more.

Buying a home—it’s an exciting journey that millions of people embark on each year.

And like any journey, you need to set goals and create a clear roadmap to successfully reach your destination: a new home.

HSBC Bank is here to help. This video walks you through the home buying process step by step - and will leave you feeling prepared, confident, and motivated as you begin your journey!

Prepare for homeownership.

During this important first step, you determine if you’re ready for homeownership and assemble your home buying team.

Determine what you can afford.

You compare mortgage options and rates, review what goes into a monthly payment, and determine how much home you can afford.

Get prequalified.

Show sellers you’re a serious buyer by getting prequalified with HSBC. A prequalification gives you the leverage needed when making an offer. Now it’s time to house hunt!

Apply for a mortgage.

Once you find your home and your offer is accepted, HSBC works with you to ensure all necessary documentation is submitted. Remember: We’ve got your back!

Secure mortgage approval.

We’ll help you finish your application and seek approval.

Close on your mortgage.

Upon final approval, you receive your closing disclosure. Now it’s time to schedule your closing, sign documentation, and get the keys to your new home. Congratulations!

HSBC is here to make homeownership a reality for you. Click to get started today.

1 Private Mortgage Insurance is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Private Mortgage Insurance is generally required for a loan with an initial loan to value (LTV) percentage in excess of 80%.

2 Final mortgage approval is subject to receipt of a satisfactory purchase contract by commitment expiration date, satisfactory appraisal and title report and completion of all conditions stated in your commitment letter.

3 Consult your tax advisor for details on tax deductibility of interest paid on loans secured by your home.

4 Escrow may be required on certain mortgage products. Taxes and insurance may vary, impacting total monthly mortgage payment.

If you are a service member on active duty looking to refinance your mortgage loan, please consult your legal advisor regarding whether your existing mortgage loan is eligible for benefits under the Servicemembers Civil Relief Act and how a refinance may impact those benefits.

Mortgage and home equity products are offered in the U.S. by HSBC Bank USA, N.A. and are only available for properties located in the U.S. Subject to credit approval. Borrowers must meet program qualifications. Programs are subject to change. Geographic and other restrictions may apply. Discounts can be cancelled or are subject to change at any time and cannot be combined with any other offer or discount.

Request a rate quote or mortgage financing

Understanding the home buying process

Home-buying tips

Get your finances in order

Get prequalified

What you need to apply for a mortgage

What to consider when looking for a house

Owning vs. renting