Real Estate Financial News
- Investors Raise $2B For GSE Rental Program
Wednesday, February 22nd
Investors seeking to buy and then rent foreclosed properties... - NAR: Existing Home Sales and Inventories...
Wednesday, February 22nd
Posted To: MND NewsWire There was more good news from the National... - MERS Has Second Court Win in Month
Wednesday, February 22nd
Posted To: MND NewsWire For the second time in just under a month...
The Home-Buying Process
Pre-qualification & finding a home
Pre-qualification
Once you've decided homeownership is for you, getting pre-qualified for a home loan is the first, and perhaps most important, step to achieving your goal. During the pre-qualification process, you'll find out how much you can borrow by completing a loan application with your loan officer, who will also pull your credit report and help you decide on a loan program. If the loan officer is able to pre-qualify you for a home, you will receive an estimate of the expected closing costs.
Find a Home
Armed with your pre-qualification, you can shop for a home with confidence. Since you know how much house you can afford, you and your Realtor will be able to focus your search on homes in your price range. When you find the home you love, you and your Realtor will make an offer to the seller of the property in an attempt to agree on the price and terms of your home purchase by way of a contract. If the seller accepts, you move on to the next step!
Building your loan file & submission
Building Your File
As you search for a home, your loan officer will compile the documents that will become your loan file. These documents include (but are not limited to):
- Pay stubs
- W-2s
- Tax Returns
- Bank Statements
- Divorce Decree (if applicable)
In addition to providing these and other documents, you will be asked to sign various forms and disclosures required by law.
Loan Submission
When your loan file is complete, the package will be submitted to underwriters for analysis and approval. The underwriters will set forth conditions that must be met before your loan can close, and may request additional documentation.
Property information
Property Information
As a condition of closing, certain reports about your home will need to be produced that are important for you to review. These include:
- A preliminary title report - done by your title/escrow company. This report determines current legal ownership and checks for any liens, easements, or encumbrances.
- A property appraisal - performed by a licensed real estate appraiser. The appraisal report determines market value of the property.
- A home inspection - performed by a professional home inspector. The inspector will check for structural and electrical/plumbing defects in the home.
Closing process
Signing Loan Documents & Funding
After all the underwriters' conditions are met, your loan "docs" will be drawn and forwarded to a signing agent or the escrow company for signatures. Your loan officer will contact you to arrange a convenient time for signing. The signed documents will be sent to the lender to fund your loan. Funds are transferred to escrow by wire.
Recording
All documents to be recorded will be delivered to the county courthouse by the title company, to be recorded at the next recording time. Your home purchase is now a part of the public record!
Keys!
When recording is confirmed, your Realtor will present you with the keys to your new home!