What are the Steps to a Successful Home Buying Experience?
- Step 1 - Get Pre-Approved
- Step 3 - Submit a Written Offer
- Step 4 - Processing and Underwriting
- Step 5 - Closing Day
Step 1 - Get Pre-Approved
Prior to going house hunting, it is important you take care of the pre-approval process first. The process is quick and easy and when you find that home you fall in love with, you will be able to act quickly, placing an offer in immediately making sure you do not lose out on the home of your dreams.
Benefits of Getting Pre-Approved
- Know exactly what price range of homes you can afford
- Understand your down payment requirements
- Properly budget your monthly payments
- Understand the difference between loan programs and property restrictions
Certain home loan programs have restrictions on property types, HOA restrictions, and appraisal standards that your real estate agent needs to be aware of prior to showing you listings. A personalized strategy session with a trusted mortgage professional should address all of your initial loan approval questions, as well as uncover any potential challenges that could complicate the home loan process.
Step 3 - Submit a Written Offer
Assuming that you've already been issued your mortgage pre-approval and have a firm understanding of the type of home loan and property you are qualified to purchase, your real estate agent will submit your written purchase offer to a listing agent or seller.
Once you receive an accepted offer, the due-diligence period starts a series of timelines for final mortgage approval, inspections, appraisals, and other important requirements that are negotiated and outlined in the terms of the purchase contract.
Step 4 - Processing and Underwriting
This is where you are the quarterback of this game. The home loan process can move as quickly or, in some cases, as slowly as you wish. The quicker you provide the required requested documents to process your home loan and satisfy underwriting final approval, the faster you can get to the ultimate goal; the closing table.
Step 5 - Closing Day
On the closing day, you will complete the signing of the final loan application and other important closing documents to seal the deal and close on your new home.
Latest Home Buying News and Information
Assembling Your Home Buying Team – Knowing The Players
Buying a new home is literally a team sport since there are so many tasks, important timelines, documents and responsibilities that all need special care and attention. Besides working with a professional team that you trust, it’s important that the…
Read MoreCommon Documents Required For A Mortgage Pre-Approval
Even though many lenders are still quoting quick 10 minute pre-qualifications over the phone or online, a true mortgage approval that holds any weight is one that has been issued by an underwriter who has had an opportunity to review…
Read MoreHOA Hurdles to be Aware of When Looking at New Properties
A Home Owner Association (HOA) can have a huge impact on your life when you buy a home in a PUD (Planned Unit Development) or Condominium Project. According to Wikipedia: A homeowners’ association (abbrev. HOA) is an organization created by…
Read More
Do I Need To Sell My Home Before I Can Qualify For A New Mortgage On Another Property?
Although every situation is unique, it is not uncommon for homebuyers to qualify for a mortgage on a new home while still living in their primary residence. Perhaps you are outgrowing your current house, or have been forced to relocate…
Read MoreSeven Things Your Agent Should Know About Your Mortgage Approval
While many experienced real estate agents have a general understanding of the mortgage approval process, there are a few important details that frequently get overlooked which may cause a purchase to be delayed or denied. New regulation, updated disclosures, appraisal…
Read More
First-Time Home Buyer Checklist
Getting a home loan or mortgage for a First-Time Home Buyer can be a little overwhelming with all of the important details, constant guideline changes and federal regulations the mortgage industry faces today. Luckily, we are here to help and…
Read More
Source of Down Payment – Making Sure Your Cash To Close Comes From The Proper Source
Providing proper asset documentation and the actual source of the funds is a critical element of the loan closing process. There’s nothing worse in a real estate purchase than making it all the way through the hoops and hurdles just…
Read More
Renting vs Buying A Home
Buying a home versus renting is a big decision that takes careful consideration. While there are several biased sources that can make arguments for or against owning a home, we’ve found that most home buyers base their ultimate decision on…
Read MoreHow Much Can I Afford?
How much mortgage money can I qualify to borrow? This is typically the number one question mortgage professionals are asked by new clients. Of critical importance when considering mortgage financing: There is sometimes a difference between what a client ***can***…
Read MoreImportant Factors To Consider When Getting Financing On A Foreclosure, Short Sale or New Construction
Short sales, foreclosures and new construction homes all have caveats that need to be considered when pursuing financing. If the guidelines and potential pitfalls are not properly understood, you could face delays in closing or potentially even a denied loan.…
Read More