Why purchase a home?
Purchasing a home is one of the most rewarding decisions you can make in
a lifetime. It allows you the comfort of having a roof over your head, the freedom
to paint or decorate any color you want and the security of a place to call
your own. It can be one of the best investments you'll ever make.
How to purchase a home:
Step #1 - Pre-Qualification
First, you, the borrower, will fill out an application and gather up current pay stubs, W2s, 1040 Tax Forms and Bank Statements. At the same time, I will run your credit to determine, along with all of the other paperwork, how much you can afford to pay for a house. Since different loan programs can cause different valuations for a borrower, it is essential to connect over the phone or in person and find out about your needs.
No rules are carved in stone. Each client is handled on a case-by-case basis. So even if you come up a little short in one area, your stronger point could make up for a weak one. It's about compensating factors that create balance in the eyes of a lender.
Step #2 - Picking a Program
Second, I select loan programs that fit your needs and lifestyle. This depends on how long you plan to keep the loan/property. If you plan to sell the house in a few years, a shorter term loan like a 3/1, 5/1 or 7/1 ARM might be suitable. If this is a home you plan to live in for the next 15-30 years, a more long-term loan like a 15-year or 30-year fixed might be more appropriate.
Shopping for a loan is difficult without mortgage experience, as there are so many lenders and programs to choose from, each with different rates, points and hidden fees. That's why an experienced mortgage professional like myself can evaluate your situation and recommend the best types of loan programs for you.
Step #3 - Processing and Closing
Once I have your paperwork and we have evaluated your needs and financial situation together, I get to work and research the different programs and lenders that might be best for you. At the same time, I work with your Real Estate agent to obtain copies of the purchase contract and preliminary title report as well as order an appraisal of the property. Then I submit the file for approval from the lender. Once we have loan approval, my processing team works on clearing any conditions the lender might have. When conditions are cleared, I make sure your documents are sent to the escrow company and have the escrow officer prepare all the documents for you.
When the documents have been signed, they go back to the lender for final review and my team works on any last minute conditions that need to be met.
Step #4 - Fees
What does it cost? The costs are minimal to the borrower...YOU. In the beginning,
there is a credit report fee which usually runs around $17 per borrower (married
couples are only $17). There is also an appraisal fee which can run from $250-$900
depending on the size of the property and the type of appraisal needed for the
loan. These are the only two costs the borrower will need to pay up front. There
are some closing costs which we account for in escrow but those are mainly for
processing, escrow and title. You can also choose to pay points, or not, but
this is something we can discuss in detail if you are interested.