Getting Pre-qualified is the first step in exploring the idea of purchasing a home. This process is free and it starts with a simple call, with no obligation. It will allow you to know the type of loan that is best for you as well as what your purchasing power is, so you can begin shopping with a licensed Realtor.

There are hundreds of loans available, so consulting a mortgage professional is an important first step. During the process, your mortgage professional will ask for basic information to understand your financial situation. Your credit report will be used to help the mortgage professional understand what you can afford.

Next, the mortgage professional will ask you for information such as employment history, information about your savings, marital status, ownership of additional properties, and other questions to help determine the best loan programs for your unique situation.

The following are some additional questions a mortgage professional might ask:

Are you a first-time homebuyer?

A first-time homebuyer has not owned a home in the last three years or is a recently divorced homemaker. Why is this important? Because there are many programs that require a lower down payment, provide a lower interest rate, or even provide down payment and closing cost assistance to new homebuyers.

Are you a Veteran?

Many Veterans qualify for a special VA loan that requires no down payment and doesn’t require mortgage insurance! In most cases, it is easier to qualify for a VA loan. So, why not use this special benefit?

Acceptance occurs when all parties agree to the price and terms of the contract. At that time, the clock starts ticking to adhere to all dates that are outlined in your purchase agreement. This is also known as a ratified contract.

Your purchase contract will outline the timeline and dates that are critical to remaining compliant. During your contract period, you may be handling tasks such as: inspections, appraisals and working with your mortgage professional on items they need to get your loan approved.

Open Title

The title company is a third party who remains neutral throughout the transaction. They will carry out all the instructions of your contract and provide the title insurance. They will also collect your earnest money deposit and prepare the final closing figures.

General Inspection

You have the right to do inspections anytime prior to closing. If during your inspection contingency period there are problems found, the buyer can terminate the contract or potentially discuss repairs with the seller. The contingency period begins on the date of the executed contract and normally lasts from 3 to 15 days.

Appraisal

An appraisal may be required by the lender to insure the property’s market value and to certify the property meets required standards. Two important areas to focus on are the appraised value and required repairs. You typically pay the cost as required by the appraiser up front. Federal law entitles you to a copy of the appraisal.

Loan Approval

After the underwriter has reviewed your file, they will provide a conditional approval, often times requesting additional items. This is a normal part of the process. Once all conditions have been cleared, your loan has final approval and can be moved through the closing process.

Repairs

Repairs are a common part of purchasing a home. Some repairs may be required prior to funding the loan. It is not uncommon that most repairs will take place after homeownership unless required as a condition of the loan by the appraiser or lender.

Homeowners Insurance

For loan approval, you must obtain homeowners insurance. You will need to provide your insurance agent with the address, square footage, and age of the property. Some insurance companies ask for additional information that can be provided by your real estate agent. Your insurance premium for the first year will typically be included in your closing costs.

The amount of your insurance premium is determined by the type of coverage needed. This will be discussed with your insurance agent.

Closing

Closing is the date and time scheduled for you to sign your loan documents and other paperwork based on your close of escrow date in your contract. The title company will coordinate the time and date convenient for you and the title company.

Funding

Funding occurs when all papers have been signed, all conditions have been met and your funds to close are in title. Funding typically occurs on the day before or the day of your contracted date to close. Careful planning will ensure that all expectations have been met. You will receive the keys for your new home when the loan has funded and recorded.

Possession

After funding and recording, your real estate agent will give you the keys to the property and you will officially own your new home. Congratulations!