Applying for a Mortgage
1. Select mortgage lender – Programs differ: interview several.
2. Be Prepared – Use the checklist below to help gather necessary information before you apply.
3. Pre-qualification: Determines buying power: price range
4. Application – Loan Officer
Outlines your financial requirements; helps determine the right mortgage plan for you; helps complete the application forms.
5. Processing – Loan Processor
Your primary contact. Gathers information; works with appraisers and credit agencies; keeps you updated on loan status
6. Processing – Underwriter
Reviews all information and makes a decision on your loan.
7. Loan approval time: 3-6 weeks
Be sure that you have the following information available when you apply for a loan.
1. Social Security Number
2. Residence address for the past two years. If you’re a renter, landlord’s address/phone for the past two years.
3. If you’re a homeowner, loan number and mortgage holder for the past two years.
4. Name, address and phone number of each employer for the past two years.
5. W-2’s for the past two years and pay stubs for the past 30 days.
6. If self-employed or commissioned, personal and business federal tax returns (all schedules) for the past two years, a year-to-date profit and loss statement and balance sheet.
7. Bank statements ( including checking, savings, money market)
1. Buying a home: the process
2. Selecting an Agent
a. Traditional Agent – Represents Seller all of the time
b. Dual Agent – Represents both Seller and Buyer at the same time
c. Transaction Facilitator – Represents neither Buyer or Seller
d. Buyer Agent in Traditional Firm – Sometime represents Seller, sometimes Buyer
e. Designated Buyer Agent – Represents Buyer or Seller in a specific transaction. Broker is a Dual Agent
f. EXCLUSIVE BUYER AGENT – Represents Buyer 100% of the time
THE SEARCH STEP
1. Pre-Qualification – Determines purchasing power; defines price range
2. Needs and Wants – Set priorities for size, location, style, features
3. Select Search Area – Preview information on available homes
4. Review Comparable Sales and Tax Data
5. Drive-by Tour of Homes
6. Tour – Select Homes with Agent
7. Writing an Offer – Strategy, negotiation, financing, contingencies, inpsections
1. Mortgage Application – Requires credit check, home appraisal
2. Settlement Schedule – Deadlines for inspections, approvals, insurance, settlement
3. Professional Home Inspection – Buyer & Agent should be present
4. Select Settlement Attorney – For title search, title insurance, survey, settlement statement
5. Mortgage Approval – Takes approximately 2 -4 weeks
6. Obtain Homeowner Hazard Insurance – Lender requires
7. Termite Inspection
8. Notifiy Utilities
9. Final Walk-through inspection
SETTLEMENT – CONGRATULATIONS!