You have officially been “pre-qualified”…..Congratulations!
You should have obtained a pre-approval letter from your Mortgage Loan Originator.
The pre-approval letter is a powerful negotiation tool that lets sellers know that you are a serious bona fide buyer.
Step 5: Selecting a Realtor
There are many websites out there that show homes for sale, don’t believe everything you read!
Many websites do not have up to date information about the status of a particular property.
Selecting a qualified realtor will save you time by searching out properties for sale that meet you home hunting criteria.
Residential Mortgage Solutions has experience with some of the top rated real estate agents in your market.
Let us introduce you to one of our proven experts to get this process started today. Visit Our Realtor Partners
If you decide to choose your own realtor, here are some great interview questions to ask: Questions to ask a Realtor
The right realtor will act as your advocate on what will most likely be one the biggest purchases of a lifetime; do your homework upfront and choose wisely!
Step 6: You’ve found your dream home
You have completed an extensive search for the home that you love….. it is time to make an offer.
Your prequalification letter will be required by the seller’s agent to prove you are a bona fide buyer who is ready to purchase.
Your purchase offer if accepted will become a binding sales agreement.
Click here to view a list of items your written offer should include.
Step 7: The do’s and don’ts of the loan process
You shouldn’t do anything that will have an adverse effect on your loan.
Lets talk about the DO’s to pay attention to prior to the closing date of your loan.
Always be responsive to providing documentation requested from your lender.
Provide your EMD (earnest money deposit) from you own funds or acceptable gift funds.
Watch your credit score through a credit monitoring company.
Notify you Mortgage Loan Originator of where your assets for closing will be derived.
Save as much money as possible for any unknown expenses that may arise.
Make all your credit cards and installment debt payments on time.
Communicate any positive or negative changes in your employment status or income.
Discuss with your Mortgage Loan Originator how someone providing gift funds to you will be transferring the money.
Now let’s focus on the don’ts of the loan process.
Don’t open up any new loans, credit cards, cars or other debts until you go to settlement.
Don’t change jobs or employment without consulting with your Mortgage Loan Originator first.
Don’t deposit any cash into your account unless it is the exact amount that can be verified by a recent pay check.
Don’t borrower any money from any person or company.
Don’t transfer funds from different accounts before first discussing where the monies are coming from with your Mortgage Loan Originator.
Don’t take any leave of absence or unpaid time off which could affect your qualifying income.
Don’t spend the monies you are using for your down payment and closing cost.
Step 8: Processing and underwriting your loan
After you have submitted the required documents for your loan, your file is broken down, organized and submitted for processing.
The mortgage loan processor orders all of the required verifications on your loan including:
Assets
Employment and residence history
Rental or existing mortgage history
Credit inquiries
Title and appraisal requests
Upon receipt of the required verifications, your loan file is submitted to underwriting.
The underwriter will approve, suspend or decline your mortgage application.
Once conditional approval is issued, you will receive the list of the conditions from your Mortgage Loan Originator.
Step 9: Final Approval
You have met all of the conditions on your loan and the underwriter has issued a final approval or “clear to close”.
You should expect a final Loan Estimate 4 business days prior to your closing date.
Since 2015 the HUD 1 settlement statement was replaced by what is now called the CD or Closing Disclosure.
The CD must be issued by email, mail or in person 3 business days prior to the settlement date.
The purpose of this process is to make sure the loan rate, terms, fees and costs are accurate based on the initial Loan Estimate provided.
Step 10: Settlement Day
Your contract has already determined your day of settlement.
The coordination of where to close and the time is normally handled by your real estate agent for all parties.
Prior to going to sign the loan documents your real estate agent will arrange a final walk through in the home you are about to purchase.
You are encouraged to look for any damage that may have been caused by the moving company that the seller used.
Most title companies or closing attorneys require your funds to be wired to their account one day prior to closing.
Once have executed the many documents required a few other items still need to be resolved.
Making sure the utilities have been transferred into your name on the effective day of closing:
