We are here to help take stress out of the equation as you move through the home loan process. Check out our quick guide below to give you an idea of what you can expect.
Before you start looking for a new home, it is important to know how much home you can afford. Your income, assets, and credit history are the main factors in determining your budget and can be evaluated by your loan officer to help determine your ideal price range. By working with your loan officer before beginning the house hunt, you will not only save time, but your real estate broker will be able to help you find homes that are within your budget. Once you find a home, your loan officer will be able to further assist you by helping to determine the interest rate, costs involved in the purchase process, and potential monthly payments.
Once you have found a home and your purchase offer is accepted by the sellers, it is time to submit your loan application to purchase the property. At this time, your Loan Officer and Loan Processor will gather all the necessary financial documents required from you, such as W2s, tax returns, and bank statements – and secure the interest rate and costs involved in buying the home.
The home inspection and appraisal will evaluate your chosen property, but in quite different ways. A home inspection is completed to protect you from purchasing a property with structural defects, electrical or plumbing issues, and other major problems. An appraisal is completed to protect from lending more than the home is worth. Shortly after your purchase offer is accepted and the loan is being submitted for financing, your real estate broker will order a home inspector to check out the home and report any findings before you are fully committed to purchasing the home. The time frame for the inspection to be completed should be clearly written into the sales contract. If there are no findings that warrant canceling your offer, an appraisal will be ordered and an appraiser will validate the market value of the home. It can take some time for the appraiser to complete the report. In the meantime, your loan team will continue to process your loan.
Once the appraisal is reviewed and all of your financial information is validated, you will receive loan approval. Barring any unforeseen circumstances or changes in your financial situation, this guarantees you the money to purchase the home on or before the scheduled closing date, as agreed upon in your purchase agreement.
On your closing day, you will meet at a title/escrow office to sign the final loan paperwork and take ownership of your new home. The escrow officer is a third party agent who explains the loan paperwork to you on behalf of the lender and notarizes needed documents. Your loan officer may attend the closing, as well, and will always be available to answer any questions you may have and help you throughout the process. The escrow company will return your final loan documents for recording and complete the disbursement of funds.
After your loan has closed, you'll be given the keys to your new home – congratulations and welcome home!