If you are just embarking on the purchase process, you may be unsure of what lies ahead on your journey. That is why I wanted to provide you with a step by step guide or “loan road map” to help guide you on your way to homeownership!
- Get Pre-Approved
Submit your application and the documents needed to verify your income, assets, and debts, including thirty days of recent paystubs, last two years of W-2s, and two recent bank statements.
- Home Search and Offer
Your Realtor will help you find the perfect home and write up an offer letter to the seller, which details the price you are offering to pay for a property and any applicable conditions.
- Purchase Agreement
Your Realtor will write up the contract for you and the seller to sign. A deposit is generally required. This agreement will outline all of the required dates, deadlines, and contingencies.
- Home Inspection
If the offer is accepted, a home inspection is next. Home inspections are not required, but highly recommended. A home inspector will look for any issues or violations with the property.
- Application and Disclosures
Your loan officer will have you review and sign a number of documents and disclosures, including your mortgage application and a Good Faith Estimate, which details the estimated costs of financing.
- Appraisal and Title
An appraisal (an estimate or property value) will be ordered and provided to the underwriting team. Your loan officer will select a title company to research the property title.
- Homeowners Insurance
Proof of insurance is required prior to closing. Your first year’s premium must be paid in full. Have your insurance agent contact your loan officer to ensure they receive the proper insurance binder.
- Final Approval
Underwriting will review all the documentation necessary to approve your mortgage loan additional verifications may be necessary at this point. If all of the documentation is acceptable, you will be clear to close.
- Closing Disclosure
You will get a final breakdown of all costs and money required at closing. For closing, you will need government issued identification and a certified check to pay closing costs.
- Your Loan Closing!
It’s closing time! Did you bring your government issued identification? Do you have a certified check to cover closing costs? During the closing, a representative from the title company will review all the loan documents with you. They will get signatures from both you and the seller. After all money is distributed, the deed will then be recorded with you as the new owner of record!
Rest assured you are not on this journey alone. Your loan officer will be with you every step of the way and will be able to answer any questions that arise. Please contact me if you are interested in discussing the home buying process or apply now to get pre-approved today!