This is the process that provides an estimate of your borrowing power. Simply meet with one of the recommended Mortgage offices, and he or she will help you determine how much money you might be eligible to borrow before you apply for a loan. This will help you determine the price of a home you can purchase.
When you pre-qualify, you provide the loan officer with information about your credit, assets and debts. Based on the information you provide, you will find out how large a loan you could qualify for. This is not a commitment to lend.
Pre-Approval is a conditional agreement for a specific loan amount. It is based on a verification of your income, credit, and assets. It is also conditional upon a satisfactory appraisal of the property and title review, once you find the home you would like to purchase.
With Pre-Approval, you can shop for a home with assurance because you will know in advance how large a loan you could qualify for. For additional assurance, you can lock in a rate to ensure the amount for which you pre-qualified doesn’t change.
Pre-Approval gives you an edge when buying a home since Realtors and sellers will know you are a serious homebuyer.
Savings and Credit
Your loan officer will explain to you how much money will be needed for the down payment on a home. You may need assistance developing a financial plan to help you save the necessary money for the down payment and closing costs.
It is important to have a good credit history by paying your bills on time, limiting your debt, and reducing the amount of credit cards you have and the responsible use of those cards. Our Mortgage partners will review your credit report with you to make sure the record of past and current debt is accurate. The better your credit history, the better your credit score and the more mortgage options you will have.
Mortgage loans are subject to qualification, receipt of satisfactory appraisal, and verification of income, asset and debt information provided by the customer.
Once you know how much home you can afford, you can begin looking! My web site makes it simple to find properties that fit your criteria. Search for properties that are currently listed. Register for your free account on Home Buyers Marketing (HBM) and begin receiving email messages when properties that fit your specific criteria come onto the market. Put homes you like into your Favorites Box and email information about properties to your friends and family.
You will want to consider the features in a home that are important to you, including proximity to your work, schools, etc. You will also want to determine if you want a new home or a pre-owned home and if you want to do repairs on a home that requires fix-up or want one in perfect condition.
I am always available to provide you important information about neighborhoods, home values, or to find out specific information about homes you are interested in. I can help you compare home values to make sure homes you are interested in are priced appropriately.
I will introduce you to homes that fit your criteria and will make appointments with sellers to look at homes you are interested in. I will accompany you at these showings to answer your questions and point out significant things you may not be aware of.
When we find the home you wish to purchase, I will help you prepare a written offer. You not only specify the price you are willing to pay, but also the details of the purchase including:
- How you intend to finance the home
- Amount of the down payment
- Who is paying the closing costs?
- What inspections will be performed?
- What personal property is included in the purchase?
- Terms of cancellation
- Repairs you wish to have done
- Date you will take ownership and possession of the property
- How disputes will be settled
- Contingencies – potential situations that allow you to cancel the contract without penalty
Once the offer has been submitted, you must wait for the seller to respond. The seller can accept or reject your offer. The seller may counter your offer with a different price or closing date or other changes. This begins the process of negotiation that will continue until both parties agree or decide to go their separate ways. I am skilled in these negotiations and will assist with this process.
Once the offer has been negotiated and accepted by both parties, the earnest money will be deposited.
In a typical inspection a professional licensed home inspector will inspect the property. In some cases inspections will be done by licensed contractors. Items that can be included in an inspection include (but are not limited to):
- Sprinkler System
- Septic Tank
Before the mortgage company will provide a loan, they require insurance on the title of the property. Homeowner’s insurance is also required.
Meeting Contingencies and Deadlines
The contract will set forth all the contingencies and dates that have to be met to stay ‘in contract’. I work closely with the title company to keep you on schedule to all dates and deadlines. This service is just another safeguard to make sure your contract closes on time.
Before the closing occurs, we may visit the home with you to ensure that the house has been left in the expected condition. At this time you will make sure that items such as kitchen appliances, light fixtures, and other items you are expecting to be left in the home as set forth in the contract are there. Should any problems arise, we will assist in correcting the situation.
I will guide you through the process of closing the transaction. The documents will be reviewed with you and all the numbers will be explained. You may ask as many questions as you wish so that you may fully understand the details of the transaction. The documents will be signed by both you and the seller, transferring title of the home into your name.
You Are A Home Owner!
The Top 10 things you should NOT do before closing Escrow
10. Increase balances on existing credit cards or apply for new credit (no credit checks should occur during the entire loan process)
9. Purchase a car or shop for a car
8. Open a new bank account or make large deposits
7. Transfer funds from one account to another
6. Shift credit card debt from one creditor to another
5. Sell major assets
4. Get married, divorced or go on maternity leave
3. Go on vacation…making you unavailable to the lender
2. Borrow money from any source
1. Change employers or quit your job
Why do I need Title Insurance?
Real Estate has always been considered an individual’s most valuable asset. For most people, it is the most expensive and important investment they will make in their lives. Because it is such an important factor in our society, it is granted unique treatment under the law.
When you purchase a home or other real estate, what you actually acquire is title to the property rather than the land itself. Your title encompasses ownership, use and possession of the land. However, title to property may be limited by rights and claims asserted by others. Problems with title can limit your use and enjoyment or real estate and have negative financial consequences. Title defects also threaten the security interest your mortgage lender holds in the property.
Protection against hazards of title is available through a unique coverage known as title insurance. Unlike other kinds of insurance that focus on possible future events and charge an annual premium, title insurance is purchased for a one-time payment and is a safeguard against loss arising from hazards and defects already existing in the title, with extended coverage available to cover certain future events, as well.