So you want to buy a home? Where do you start? What do you need to do? How do you qualify?
To get started in process you will need a down payment – typically between 3-20% down. There are programs to help you depending on your income and credit. You need to be able to verify your income – paystubs, w-2’s and tax returns. Your income needs to be stable. Ideally 40 hours per week – or a history with the same company if your hours vary. At least two years if you are self employed. Your credit needs to be good – it doesn’t have to be perfect, but the higher the credit score, the lower your interest rate.
So how do you get started? Talk to your lender – how do you find one? Talk to your friends and family – make sure you are working with someone you trust and that knows what they are doing. Ask questions. Find out if there are programs that can help you. If the loan officer doesn’t know about programs that can help you, you may want to find a new loan officer. Remember you are going to give your loan officer a lot of information! Get quotes for rates and fees – but remember that experience counts and sometimes it’s worth paying a little more to make sure your loan will make it to the closing table! Most lenders are close in rates and fees so if something sounds too good, it may be. Get your approval – make sure your lender pulls your credit report and gets your income documentation.
Once your loan is approved, you are ready to shop! Once you have written your purchase agreement and it’s accepted, you will want to do an inspection. The inspection and the appraisal are two different things. The inspection goes through the home and looks for problems. The appraisal looks at the value of the home. After your inspection is complete, your lender will order title work and the appraisal. They will verify everything you have given them. Once they have everything back, your file goes to the underwriter for final approval!
Yeah! Your loan is approved through underwriting and you are ready for closing. Closing will happen at the title company -they are a third party that goes though everything with you. They have already done the title work to make sure you have clear title to the home. At closing you will sign several forms – the bottom line is if you don’t pay, you don’t stay!! The mortgage is a document that is several pages long and basically it is just that – tells you if you don’t pay your mortgage, they will foreclose. You do want to make sure your name is spelled correctly, the address is right and the interest rate is correct.
Once you have closed on your new home, you get to move in!! You will get your keys at closing and usually have a chance to talk to the sellers and find out anything you need to about the home and the neighborhood – maybe what day garbage is, where the mail box is, maybe something about the neighbors. I always suggest getting new locks on your doors – you never know who has a key to the home! Have fun moving in!! Celebrate your new home!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
