This is your first contact with you lender. Your credit will be pulled and you will have to answer a few questions. Once your lender has all your needed information, you will have a pre-approval letter to take with you.
Step 2: House Hunting
This is where the fun begins! You and your agent will explore different options and find a home that best fits your needs. Your agent will help you make an offer, negotiate and write a contract.
Step 3: Loan Application
Once you and the seller have come to terms and the offer is accepted, you and the lender will start working to complete the full loan application. You can lock in your interest rate at this time if you choose. You will be asked for any documents necessary for closing the loan.
Step 4: Document Collection
To help make the process quicker, be sure to get any and all documents to your lender right away. This will help you choose the right mortgage option for you, and you'll begin to know how much money you may need for closing cost.
Step 5: Inspection and Appraisal
After a home inspection, if you so choose to have one, your lender will order the appraisal. An appraisal determines the market value of the home, and it helps ensure that you are paying a fair price. Depending on the situation, you may need other inspection like pest, well, septic, and water test.
Step 6: Mortgage Loan Approval
After the processor on your mortgage lender's team receives the required documents, they will submit your file to the underwriting staff for full approval.
Step 7: Conditional Approval
Sometimes your file may need more information. The underwriter may ask for clarification on your paperwork. They may give you conditional approval at this time.
Step 8: Insure Your Home
Obtaining homeowners' insurance is a vital part of your home buying process. It is also a required part of the mortgage process. Without proof of insurance, you won't be able to close on your loan. In order for the insurance company to issue insurance, they will need some important information from you and your lender.
Step 9: Clear to Close
Once all of the conditions of your loan have been met and your file is complete, the underwriter will sign off on your loan application. Your lender will let you know when you have the clear to close. Next up, scheduling your closing date!
Step 10: HUD 1 Settlement Statement
The title company will prepare the HUD statements a few days prior to your close date. The statement will give you your total dollar amount that you will need to bring to closing, or if you are receiving money back from any earnest money you paid. If you have to pay money at the closing table, you will need to bring your funds to closing in the form of a cashier's check made out to the closing company. If you need to bring more than $10,000 to close, the funds need to be wired to the title company.
Box 11: Closing Day
The closing typically take about an hour. Once you sign the final document, the home is YOURS!
Step 12: First Mortgage Payment
Your first house payment is due on the first day of the month, One Full Month After your closing date. For example, if you close on May 10th, your first mortgage payment will be July 1st.
Author:Cory Pangburn Phone: 616-482-9332 Dated: April 27th 2016 Views: 156 About Cory: ...
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President, Kelly Pangburn, and her team of seasoned professional REALTORS® have been serving West Michigan since 1995, offering superior real estate services for home buyers and home sellers. Their approach is personal, their office is warm and inviting and their knowledge is unrivaled. Pangburn Properties, Inc., independently owned and operated with the opinion that customers come first. “Helping People Is Our #1 Priority” has been their motto since inception and remains that today. Sincere, honest and trustworthy, the REALTORS® here are truly good people to know.
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"Hi Kelly, Now that the dust has settled on the house deal, we want to thank you for your professional and trusted guidance throughout the process. I know we leaned on you for support and answers, and we appreciate your patience and expertise. It was extremely helpful and comforting to us. Besides that, you were a hoot to work with! It was a pleasure to associate with you and Cory. Your firm will be highly recommended by us."