Basics of Homebuying
For anyone new to the process of purchasing a home, there are likely more questions than answers. That is where having a good guide can come into play! If you are like me, you won’t want to call your friends and family every time a new question pops into your head. I’ve outlined the basic steps below but I HIGHLY recommend considering this guide for a comprehensive understanding of the home buying process:
http://info.smcapproved.com/first-time-home-buyers-guide
Pre-Qualify
Before you begin searching for your home, you need to know the price range for your home and what kind of interest rate you can get. With this information, you and your realtor can begin your search. This process is free, easy and takes less than 24 hours! Start by calling, going to smcapproved.com or visiting your local Stockton Mortgage office to prequalify for a loan.
Find your Realtor and your Home
Make a list of desirable features and search for homes with those things in mind, alongside your realtor. Your realtor will take all your needs, wants and desirable features, and search the area for your perfect home. You want someone who listens to you and understands your needs, and who is as passionate about finding your dream home as you are.
Once you find the home you want, you will sign a purchase agreement, including your offering price, requested closing date and which items remain in the house, with your realtor.
Loan Application
Once you have signed your purchase agreement, you will return to your mortgage banker and complete your loan application. Your mortgage banker will ask you for some key documents, a list of some basics can be found in the guide using the link above, to create your Loan Estimate. A Loan Estimate is an estimate that lists all fees paid before closing, closing costs and any escrow costs you will provide when purchasing your home.
Home Appraisals & Inspections
An appraisal is usually complete in less than ten days. The appraisal will inform you and your mortgage banker of the home’s current value and your mortgage banker will base your loan amount on the lesser of the sales price or appraisal. Home Inspections are optional and only you can determine if the report is worth the cost. The inspection will cover various areas of the home including roof, exterior, plumbing, electrical etc. to give the purchaser an idea of the condition of their future home.
Processing
The main duty of a processor is to organize and validate your loan documents to ensure they meet the lender’s standards, and that no additional documents are required for the underwriting process.
Underwriting
After your documents are processed, the underwriter will take an in-depth look at the documents to assess your qualifications. They will look at your employment record, your sources of income and your assets and analyze your detailed credit report.
Insure your Investment
Insurance is important for two reasons: it protects your new investment, and it is required by your mortgage banker. Your loan cannot close until you have purchased insurance.
Closing and Settlement
In a basic closing, the attendees will be you and your mortgage banker, the seller, your real estate agent and the closing attorney. At your closing:
- You will sign documents that make you the official owner of your new home
- You will sign your mortgage loan documents
- You will get information on how to make your mortgage payments
- Stockton Mortgage will pay the seller for you
- You will get the keys to your new home!
Visit our website to find your nearest Stockton Office www.smcapproved.com and give us a call to schedule an appointment with one of our mortgage bankers.
Source: Saylor, Morgan (n.d.) First Time Homebuyers Guide (Booklet). Frankfort, KY: Stockton Mortgage Corporation.