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Mortgage Pre-Approval: It is strongly encouraged to get pre-qualified for a mortgage before you start to look for a home. This way, you know the accurate price of the home you can afford and should be searhing for.
Loan Application/Documentation: You will need information about your income, assets and the type of mortgage you are applying for. Your credit report will be pulled to determine credit worthiness. You will be required to provide information to support your mortgage application. It’s important to supply this information in a timely manner to ensure quick approval therefore making the home buying process smoother.
The Hunt: You can now begin looking for your new home. Once you have selected the right one, your realtor will help negotiate the terms of the sale. Price, possession date and any seller’s concessions, if applicable are negotiated. We will then submit your pre-approval letter along with your offer to the seller, which in a competitive market could tilt a sale in a buyer’s favor. The details of the negotiation process and the details of the purchase agreement are items we will discuss together.
Final Application/Locking your interest rate: Once your offer is accepted we will review your Mortgage Application and Good Faith Estimate to reflect the details of the real estate contract. Interest rate should also discussed.
Insurance: Fire and hazard insurance on the replacement value of your new home are required by mortgage companies. Flood insurance will also be required if the property is located in a flood zone. Contact your insurance provider as soon as you have a finalized offer. You will be required to pay the first year’s home owners insurance premium directly to your insurance agent before closing.
Inspections: An inspection for termites is required. If termites are found, there will need to be a remedy in place before finalizing the sale. In addition you will also be given the opportunity to do a whole home inspection. Please discuss your inspection options with your realtor.
Appraisal: An appraisal is required by all mortgage companies for all home sales. The appraisal justifies the price you paid for your new home. In the unlikely event the home does not appraise for the purchase price, you may have the ability to renegotiate your purchase agreement.
Abstracting/Title Opinion: The abstract is a document that will show the history of the property and any liens it might have against it. Liens consist of mortgages, judgments, mechanical liens, etc. An attorney will provide a Title Opinion and will require all liens clear before closing to convey clean title.
Processor’s Review: A loan processor performs a final review of your mortgage request. They make sure all documents are collected and filled out correctly. Your mortgage information is then forwarded to the mortgage company for final loan approval.
Underwriter’s Review: Based on the information sent by the loan processor, the underwriter makes the final decision to approve your mortgage. At this time you may need to provide additional information before final loan approval is granted.
Approval: The underwriter gives the final approval for financing. Then the closing time and location are chosen.
Closing: This will take approximately an hour. Final mortgage documents are reviewed and signed. Please bring a photo ID and if any fund are required at closing please bring a certified check.
Move in and enjoy your new home!