Buying a Home in 5 Simple Steps
Before you begin a search for a new home, you should be pre-qualified. This process helps you determine what you can afford. Submitting the pre-qualification to the seller enhances the offer and increases the chances your offer will be approved.
Choose Your Dream Home!
Congratulations on pursuing home ownership. The advantages of home ownership are many and the process of finding the right home for you should be fun and exciting. Make a list of the features you need and want and determine the neighborhood that is right for your family. When you find the right home, filled with new features such as smart home automation, solar energy, tankless water heaters and designer selected finishes, see your lender about pre-qualification.
Apply for Your Mortgage:
Once all parties have agreed to the purchase price and terms have been signed, the executed contract, becomes the foundation of the new mortgage. Within three general business days after application you will receive a loan estimate, which explains the costs and risks of the mortgage. There are now three steps which need to be completed in order to proceed with the loan.
Decide on a loan program.
Gather all personal documentation.
Sign all necessary loan documents.
The Approval Process:
There are three major steps that are accomplished between your application signing and closing on your new home.
Locking your rate:
Knowing the closing date of the purchase contract helps your lender determine the best time to lock the rate and rates fluctuate daily. Your lender will work with you to determine the right time to lock the rate based on the estimated time of completion on your new home.
An appraisal is an opinion of the property’s value and is necessary to close your loan.
Each loan will be sent to an underwriter who reviews the application, supporting documentation, financial information, sales contract, appraisal and title to ensure all necessary criteria and regulations are met.
Three days before closing you will receive a closing disclosure, which explains the costs of the transaction. The disclosure statement details the lender’s, attorney’s, realtor’s and title fees as well as taxes and insurance. Just prior to closing, once all loan documents are signed, the loan will fund and the deed will record the following day and congratulations, you are ready for moving day!