So you are ready to buy a home? You have been searching for that perfect neighborhood and the perfect home and you found – the “one”. All you want to do is purchase, move in and get settled. Not so fast, there are still many things left to do before your dream is made into reality.
The following page of information will explain in detail what to look for, where to look and what to expect throughout the loan process. If you are a first-time home buyer these pages can be invaluable, giving you the knowledge needed to have a smooth and successful mortgage process.

Needs Assessment | Pre-Approval | Application

Underwriting | Processing | Closing

Needs assessment

The mortgage process begins with you. There are a number of questions that will need answering before you begin. The following questions are a great starting point.

• What is your price range?
• How much can you afford as a down-payment?
• What is the maximum amount you are willing to spend on a monthly payment?
• How long do you plan to live in the home?

Feel free to use our Mortgage Calculator to help establish some of these needs.

Once you have answered these questions contact us to help you determine the best loan program and amount to suit your needs.

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Pre-Approval

The biggest misconceptions regarding a home loan is the difference between Pre-Qualified and Pre-Approved. We know that they sound similar but their impact on your transaction is quite different.

Pre-qualification is an estimate of your borrowing power. This estimate is based only on the information you provide and is not verified by a lender.

Pre-approval is a firm loan commitment issued by a lender, subject to a satisfactory appraisal of a property to be purchased. When you have been pre-approved, your income, assets, and credit have been reviewed to the satisfaction of the lender.

Pre-Approval provides the biggest benefit. Here are several reasons to get pre-approved early in the process.

Confidence: Allowing you to shop for a home with confidence knowing that you have the backing of your financial institution.

Credibility: Having a pre-approval letter in hand at the time of negotiations will tell the seller that you are serious and not wasting their time.

Agility: Knowing what your financing capacity is allows you to respond quickly to counter offers.

Focus: Once you have been pre-approved you can stop worrying about financing problems and start focusing on finding that perfect home.

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Application

Applying for a mortgage is an important part of the process and helps to formalize the financial aspect of your loan. Working with our mortgage professionals will help you:

• Identify the required documents regarding your income, assets, and liabilities
• Determine the ideal loan amount and loan programs that will meet your needs
• Prepare your loan application for underwriting

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Underwriting

Underwriting is when we will be evaluating your credit history, debts, assets, income, and information about the property you wish to purchase, in order to make a mortgage loan decision.

Below are the three major factors that will determine your eligibility for a home loan.

Collateral: The property's value is confirmed by an independent appraiser comparing the value of the home with at least three properties that are similar and have sold within the last three to six months in the same area.

Capacity: Your income and overall debt structure are evaluated to determine that you have the ability to pay the loan back on time.

Credit: Your past credit history is checked to make sure that you have a history of paying your current obligations on time.

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Processing

When processing your loan we will collect any outstanding documentation required to satisfy the condition determined by the underwriter. This could include any of the following reviews.

• Verifying your income and assets
• Reviewing the Purchase and Sale Agreement
• Reviewing the properties appraisal
• Checking on past credit issues, child support/alimony payments, receipt of gift funds, employment information, etc.

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Closing

The closing phase is the final step in obtaining a mortgage. Normally this will happen at the same time you purchase the home.

At the closing your mortgage is activated, the title for the property is transferred from the seller to you, and the keys to your new home are turned over to you. You will be required to sign many documents, pay your closing costs and the rest of your down payment. Expect the closing to take at least an hour and will be held at a location determined by the agreement.

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