Hello ALL. I'm finally getting back into posting weekly BLOG posts so keep a look out for these on a regular basis. If homeownership is on your list of goals for 2013, I've put together a list of steps that will help you achieve this goal. This can be very obtainable for everyone, and it doesn't have to be intimidating.
Buying a home is possibly the single biggest investment you are likely to make. Getting as much information as possible from your mortgage advisor is the surest way to make things go smoothly. I have outlined the process to 5 basic steps in buying a home.
1. Preparation : determine how much you can afford. Start by writing down your budget and how much you can comfortably afford each month. Monthly payment, down payments, Fixed rate or variable rate, purchase price, etc... your mortgage professional will help with all of these and create a mortgage analysis based on your specific situation.
A. Credit scores : every loan starts with reviewing your credit scores and credit history. This will affect the interest rate that you're offered from the lender. It is very important to review your credit report that your mortgage professional pulls to validate the report is 100% accurate.
B. Documentation : get your income, assets, personal items in order for review. It is important to show 2 years employment history with NO job gaps unless you're able to explain it to lender.
C. Request Pre-Approval from lender : after your mortgage professional has reviewed all documentation, they will be able to provide you with an accurate Pre-Approval letter that will within your budget.
2. Shop for your home : once you have Pre-Approval letter in hand from your lender, you will begin the home shopping process. It is very important to have a real estate agent that you can trust and that is very determined to find a home that fits your specific needs.
A. Make an offer : you find your home and you make an offer.
3. Choose your Mortgage terms/programs : once you have Mutual Acceptance and the seller agrees to your offer, you will begin the loan process. It is very important to choose a loan type that fits your specific needs and your mortgage professional can assist you with understanding the details of all the programs available to you.
4. Submit the loan application to lender for Loan Approval : this process is the most important one of all in my opinion. You will submit all of the necessary documents to the lender and you will wait for Underwriting Approval. Once you have Loan Approval, you will most likely have some "loan conditions" to meet in order to get this loan closed. You will work on those with your mortgage professional.
5. Close your Loan : once all of the loan conditions have been met to the lender's standards, the lender draws the documents for you to sign and we close on the home loan.
From the time you find your Dream Home, the loan process usually takes anywhere from 2-4 weeks depending on the scenario. It is very important to find a Mortgage Professional that will help you through this process and make it as smooth as possible for you. Hopefully, these simple steps will help you understand the process a little better.
Have a great rest of your day/week! Please don't hesitate to reach out to me if you have a question.
JV
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