Buying a home is not as scary as you may think. By preparing and being prepared for what to expect, buying a home can be much easier. It is important to understand what to expect when preparing to buy a home, and what to expect during the home buying process. With this short outline of the five main home loan milestones, below, you will be able to gain an understanding of where you are in the process of buying.
Pre-Qualification
Congratulations, you’re ready to buy a home! This is a good step to take if you want to move into the new house you are searching for. This is a no-cost, no-commitment, 10-20 minute analysis that will give you a great starting point for your new home loan process. This information is necessary to calculate your maximum monthly mortgage payment and how much you can borrow from Mortgage Broker Surrey. If you pre-qualify for a loan before you go home shopping, it helps you set a budget and strengthens your negotiating position when making an offer.
Application
You should find a home before you make an offer to purchase it from the seller. A real estate agent will be able to present the terms of the contract to be signed, accompanied by a pre-qualification letter. Once your offer is accepted, you’ll receive your initial disclosure package and you will begin the application process. If you want to avoid a long-term relationship with a lender, you may need to provide your Mortgage Broker Surrey and processor with updated income and asset documentation. Your loan will stay on track if you have your documents completed quickly and thoroughly.
Processing
Once all the documentation is complete, the processor will review it for accuracy and completeness. He/she will review your title work, appraisal, credit report, and any other documents that are necessary. Once the processor has reviewed the full application package, he or she will pass it on to the underwriter. Don’t worry about it, your mortgage specialist will be there to guide you, answer any questions you may have and ensure that your application will complete.
Underwriting
Once your loan gets to this point, the underwriter will review your entire loan package to determine if the package meets the guidelines for approval. The underwriter will examine your financial documents, credit history, employment information, assets, and other supporting materials to make sure that you qualify for the loan. Once all conditions have been met and any contingencies have been cleared, the underwriter will issue their final approval and the loan is sent to closing.
Closing
You’re now in the final home loan milestone, closing. This is the best part!. A week prior to closing, you will receive your closing disclosure (CD). They’ll show you how much you’re likely to pay in closing costs, terms of the loan. How much money you’ll need to bring to the settlement. You’re always welcome to contact us if you have questions. We want to make sure you’re getting everything you need. Once the transaction documents are signed, the funds will be distributed, and ownership of the property will transfer to you. The house is finally ours.
The process is long, but strive to make it as seamless as possible. If you are ready to start your home buying process, contact one of our mortgage specialist.