A New Home is one of the biggest purchases you will make during your lifetime and also one of the most rewarding! Owning your own home lets you take control of your own destiny and start investing in your own future equity. There are so many different ways to finance a new home from the type of loan, the rate, the term, etc. All of these factors will allow our mortgage loan originators to give you the best options available at that time. Programs are constantly changing and the options vary depending on personal specific situations. Please call our office to discuss any special circumstances you may have so we can explore options together. The list below is a helpful guide to give you an idea of what to expect.
- Most loan types will require we verify 2-year work history, preferably in the same line of work. While there are many exceptions to this rule, in general, a 2-year history in the same line of work or 2 years of tax returns for self-employed borrowers will be required.
- Most loan types will need a credit score of at least 620 and no late payments in the last 12 months. However, there are a lot of exceptions to this rule. We have options below 620 but the debt and asset requirements will be more strict on these programs so please call for details.
- Down Payments are not required on all loan types. Depending on what types of loans you may qualify for, you may not need a down payment. If you need a down payment we will need to verify the source of those funds.
- Acceptable funds can come from a verified gift from a family member or close friend, a 401K loan, retirement account, savings, or checking, etc. Cash or deposits into your account we can not source would be unacceptable forms for your down payment.
- Remember to report any possible debts including other properties you may own or vacant land/lots you own, debts you have co-signed for another person, IRS repayment plans, alimony, child support, and in some cases even monthly child care expenses need to be reported.
- If your current situation does not allow you to qualify for a new home, our loan originators will gladly help assist you with a plan of action that should allow you to qualify in the future. We have several customers working on a path towards home ownership and all of those that successfully follow our advice will be eligible to purchase in the future.
Once you are pre-qualified it is time to notifiy your real estate agent to start looking at new homes. At this time we will also begin working with your agent to send letters to accompany any real estate offers you decide to make.
Once your offer is accepted, we will begin the underwriting process. Here is what you can expect;
- A lot of paperwork 😊 Your initial disclosures have to be signed to start this next step.
- The remaining documentation not obtained during the pre-qualification process will now be needed
- The appraisal will need to be paid for and ordered. The cost of the appraisal ranges from $600 to $1100 depending on the type of loan you qualify for.
- The underwriter will make special requests after reviewing your file. Supporting documentation can often lead to the request of additional documentation so work closely with your loan originator and processor to make sure these documentation requirements are met.
Once all of your loan documents have been cleared in underwriting, your file moves to our closing department. Here we will begin working on the final numbers for closing with the title company and verify any expenses you may have paid prior to closing including appraisals, inspections, etc. A draft of your closing costs will be sent to you for signature. This must be signed by you 3 business days in advance of your scheduled closing so please do this as soon as possible to avoid closing delays. Remember, this is just a draft, final numbers will always come from the title company, Once the final numbers have been confirmed for closing, we will send the loan closing documents to the title company. You will need to coordinate with the title company for the payment of any funds you owe at closing and please attend your closing with 2 ID’s to help speed along the process. Your loan originator will review these documents prior to your closing and answer any questions you may have.