The Home Buying Process

If you’re thinking about buying a home, it can be a very stressful process and it’s important to understand all the steps.  This should give you an idea of how the process moves.

Get Pre-Approved

Some lenders require that you have a specific home chosen before they will discuss loan options, but we will typically offer a pre-approval letter prior to that. Getting pre-approved prior to selecting a home gives you a good idea of what you can afford and the different programs that are available to you.  Most sellers also require a pre-approval letter before they will accept your offer anyhow, as it shows that you are a serious buyer and some one that can afford to purchase their home.  

Part of the pre-approval process is also checking your credit.  Most lenders use your mid FICO score in determining your interest rates and creditworthiness. so it may be a good idea to check it out for yourself first.

Choose Your Home

Once you find your ideal home it’s now time to make an offer.  If your offer is accepted, most sellers will require you to provide an earnest money deposit, which secures the home while you obtain financing and have the necessary inspections completed in order to finalize the purchase.  

Gather Your Documentation  

When you apply for a loan, you will be asked to provide certain documentation and/or information relating to your current financial status, employment, assets (including both real and personal property) and liabilities.  Make sure to have your current paystubs, bank statements, tax returns for the two years preceding your application and information relating to any debts that you currently owe.  If you are self-employed, you will also be asked to provide a year-to-date profit/loss statement, which is also known as an income statement. 

Meet With Your Lender  

Now that you have your documentation together, it’s time to meet with your lender or mortgage broker.  At this point, you will complete a mortgage application and submit it for approval.  Depending on the lender, it may take anywhere from several hours to several days before learning whether or not you are approved. 

Waiting to Close 

If your loan is approved, it’s time to move forward to the next step in the mortgage process.  Your lender will order an appraisal to be completed on the property.  During this time, you should order a home inspection.  This is just as much for your own protection as it is for the lender because it may reveal hidden problems within the home.  The inspection and appraisal can take up to 30 days, at which point the results will be forwarded to the lender.  If all goes well, you will close on the loan and get ready to move into your new home.

If you have any questions about the process or would like to get pre-approved today, please feel free to call me 207-590-0337 or email me at randy@assuredmortgagesolutions.com.

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