The Home Buying Process
Step 1. Is Now the Right Time?
• How long are you planning on living in your next home?
• Consider the benefits/drawbacks to owning a home.
Step 2. Get pre-approved for a mortgage
• What’s the best price range for you?
• What are the different loan programs available
• Make sure your credit score is in good shape.
Step 3. Find your dream home
• What kind of home do you want
• How many bedrooms and bathrooms?
• Are school districts important?
Step 4. The Escrow Process
• The home inspection.
• Reviewing disclosures.
• Ordering the appraisal.
• Securing Financing.
Step 5. Closing
• The final walk through.
• Schedule the move.
• Changing over utilities.
Preparing For The Lender
• Ensure to have the full names of all of the purchasers as they are to appear on the title.
• Bring social security numbers of all purchasers.
• Present residence address for all purchasers.
• Previous address for all purchasers going back 2 years if they have not resided in the present home for 2 years.
• Home, Office, and Cell Phone numbers.
• Present employer: Name, address and a contact person to send employment verification forms.
• Explanation for any gap of employment during your 2 year history.
• Relocation letter for any transferees giving the: Date, Salary, New Location, and Any relocation benefits.
• Previous Employer: Name, Address. and Contact Personell, going back 2 years if youve not had your present job for 2 years.
• Present Salary: Year to date pay stub and last 2 years’ W-2s.
• If any variable income, commission, part time income, bonus, overtime, interest income, etc, is being used to qualify, 2 years signed fedral tax returns and w-2s and/or 1099s.
• If self-employed: 2 years signed fedral, individual, and corporate returns (if applicable), Also, a profit and loss statement and balance sheet.
• Diploma and transcript if student during 2 year period.
• Rental Income: Copy of lease which is current and at least one year in length.
• Alimony and child support (only if used for qualification): Copy of divorice decree and property settlement (Ratified) setting out terms. Proof of payment will also be requested at application.
• Income from a note held: A copy of the ratified note.
• Retirement, social security and disability income: Copy of award letter and latest check showing amount of present payment. Copy of end of year statement if applicable.
Do’s and Dont’s During the Loan Process
There are certain Do’s and Dont’s which may affect the outcome of your loan request. These remain in affect before, during and after loan approval up until the time of settlement when your loan is funded and recorded. Many times credit, income, and assets are verified the hour before you have signed your loan documents. Here is a list that you should comply with:
Make Sure that you DO NOT:
Do any of these things that may alter your credit and may risk you obtaining your loan. Also, these things may put you defalut of your sales contract, may put your earnest deposit at risk, and may put you at risk of being sued.
• Quit your job or change jobs. If this is likely, consult with your loan office and call their office should this occur.
• Allow anyone to make an inquiry on your credit report except your lender.
• Apply for credit anywhere else except with your lender. This may cause more “Hits” on your credit rating which can reduce your credit score.
• Change bank account or transfer money with your existing accounts.
• Co-Sign for anyone, for any reason, for anything.
• Purchase or attempt to purchase anything else on credit such as another car, truck, boat, furniture, or other real estate.
• Charge any abnormal amounts to your current credit cards or credit lines.
• Wait longer than the time frame given per your contract to provide all neccassary paperwork and infomration to your lender when requested.
Make Sure That You DO:
• Keep all accounts current, including mortgages, car loans, credit cards, etc.
• Contact both your lender and your sales associate anytime a question may arise.
• Make all payments on or before due dates on all accounts, even if the account is being paid off with your new loan.
• Have any ledner-required money/funds to your loan office with 72 hours after home inspection is complete.
• Return phone calls from your agent, loan officer, settlement company, or anyone else involved in your transaction within 2 hours of a message.