Looking to buy a house? You know it’s a long process, but if you are not sure where to start, here’s the 411!
It all starts will getting pre-qualified so you know what you can afford; then you will want to discuss mortgage options with your mortgage professional. For a pre-approval application, you need to make sure to include the most accurate information you can to the lender. You’ll also need to provide documentation, which often includes things like paystubs, tax returns and a verification of the source for the down payment. Choosing a real estate agent is an important step in the process, since they’ll be able to help win you the best deal possible.
Once you begin shopping for a house and find the one for you, the terms of the sale will be negotiated and you’ll work closely with your mortgage and real estate professionals to make sure you are successful. An appraisal, title examination and potential other inspections will reveal any hidden things about the home that have not been disclosed already. Homeowners insurance is an important and required piece of the homebuying process. Flood insurance may also be required, depending on whether the property is in a flood zone. You should also make sure to get insurance quickly, since some companies require additional inspections to issue a policy binder.
The processor’s review and file submission will include everything needed, packaged by your mortgage professional. This will be sent to the lending underwriter and will include any necessary explanations. Next is the underwriter’s review, which is based on the information put together by the loan professional and their team. Then, the underwriter makes the final decision regarding whether the loan is approved. There will be an approval, denial or counteroffer, and the lender may ask the borrower for additional information or recommend an adjustment to the structure of the loan.
Now is the time to sign and fund. During this step, final loan and escrow documents are signed and the lender will send a wire or check for the amount of the loan to the title company. Laws vary by state, so this may be done at the same time or may require a waiting period. You’ll want to check with your mortgage advisor for what to expect.
When you’ve come to the end of the process and are now a homeowner, make sure to thank your mortgage and real estate professionals for their help in getting you into your home. You can help them even more by referring your friends and family who are in need of purchasing a home to them. They would love to assist in this important decision-making process. QCBN
By Greg Riordan
Greg Riordan is a loan officer with Legacy Mutual Mortgage. For additional information or to get in touch with Greg, visit legacymutual.com/officers/greg-riordan or call 928-427-5156. You may find his office at 325 W Gurley St #102, Prescott, AZ 86301. Greg cares about the people that choose to trust him with the biggest asset in their lives – their home. He will give straight, honest answers with exceptional advice, whether you are refinancing your home to pay off debt, lower your rate, reduce the length of your loan or to purchase your first or next dream home.
Leave a Reply