1. Initial Consultation. One of the first things you should do once you decide to buy a home is to speak to a mortgage professional and find out how much you qualify for. You provide information about your income, assets, liabilities and real estate you currently own. You will also sign paperwork so your credit report can be obtained. Your mortgage professional will get an idea of how much you can afford, determine your wants and needs and review mortgage options with you.
2. Apply for Preapproval. Preapproval means that your credit report has been pulled and an underwriter has been consulted. Once you have preapproval you buying power is strengthened because the seller is assured that you are creditworthy and the sale will not be cancelled because you cannot obtain financing.
3. Find Your Home. This is the fun part. Let your Realtor know your wants, needs and how much you can spend and start looking at homes. Once you have decided upon one you can make that offer.
4. Make and negotiate the Offer. Your Realtor will guide you through this process.
5. Get a Home Inspection. Your offer will most likely be contingent on a home inspection which will have to be completed within 7-10 days of acceptance of the offer. You will hire a home inspector to evaluate the condition of the home and check it's major systems.
6. Finalize the Mortgage Application. Meet with your mortgage professional and decide on your mortgage choice and review the terms and conditions. Always ask anything you don't understand to be explained.
7. Lock or Float the Rate. You can lock your interest rate which will secure your choice. If you elect to FLOAT your rate it will change with the mortgage market. At any time you can choose to lock it up to three days prior to closing.
8. Provide all Requested Documents. You will be asked to provide numerous documents, including pay stubs, W-2 Forms, Tax Returns, etc. Your mortgage professional will give you a list. If they call and ask for something else get it as quickly as possible. The approval process cannot move forward without the necessary paperwork. If you have any questions about the reams of paperwork requested, ask your mortgage professional.
9. Receive and Review the Disclosure Package. You will receive a package of disclosures including a Good Faith Estimate of Closing Costs, Truth-in-Lending Disclosures and other information about the financing you have chosen within 3 business days of your application. It is important to review these materials and confirm that the terms shown match your expectations. Contact your mortgage professional with questions.
10. Appraisal and Title Search are Ordered. The appraisal will be ordered and title commitment will be ordered. You will be expected to pay for the appraisal at the time of the loan application. The title company searches the title of the home to ensure you are receiving title clear of any liens, etc.
11. Receive a Commitment Letter. Receipt of this commitment letter means your loan is approved and you are ready to close. There may be some conditions in the letter, for example; proof of homeowners insurance, paying off a collection item on your credit report. The commitment letter contains the terms and conditions under which the loan is be given to you.
All through the process if you have any questions, ask your Realtor or Mortgage Professional. They are experienced and are there to ensure you are comfortable throughout the process of purchasing your home.
No comments:
Post a Comment