Pre-qualification is usually done over the phone, but can be done in person. We will get employment and income info, savings info and take a look at credit. It is here that we can determine if you are eligible for financing, what Loan Program is most suitable for you, how much you can buy and what your payment would be.
Step Two: Pre-Approval
Here we will verify the info you gave us in step one. We will review your payroll information and check bank statements and tax returns. Once verified, we can advise your Realtor with confidence that you are eligible for your particular Loan Product.
Step Three: Meet Your Realtor and Start Looking
In this step you will meet with your Realtor and let them know what you are looking for in a home and perhaps where you would prefer to live.
Step Four: Make An Offer
Once you have found a home you like, you begin the negotiation process by making an Offer. You may go back and forth a time or two until the Offer is Accepted.
Step Five: Take Your Loan Application
Now that you have an excepted Offer, we will set a time to meet in person and complete the Loan Application. All of the paper work will be explained to your satisfaction. The documents are signed and dated. Any updated documents might be collected at this time…such as more recent pay stubs or bank statements. You will get a copy of the entire Loan Application package for your records. This application package, along with payroll info, credit report, bank statements, etc is uploaded to the Lender and reviewed by an Underwriter who Approves the Loan.
Step Six: Clearing Loan Approval Conditions
Your Loan Approval is called a Conditional Approval. In other words, your loan is Approved…conditioned upon clearing up various Conditions. Conditions will be items like providing the Homeowner’s Insurance Binder, title work from the Attorney, etc. There may be more information the Lender will require from you…such a letter explaining an address that showed up on your credit report, or providing evidence of a deposit on your bank statement that was not payroll. And once all the Conditions are satisfied you are cleared to close and ready to go to settlement.
Step Seven: Go To Settlement
Settlement is usually held at the Attorney’s office. The attorney is representing “you” as the Buyer. He/She is responsible for explaining all of the documents you sign and, in particular, the Settlement Sheet…known as the HUD 1. The settlement sheet details the costs each party pays and where the money goes. The Attorney is responsible for disbursing the money to the Seller and all the parties that are paid from the transaction. And at the end of the settlement…you get the keys to your new home. Congratulations!!