Steps to Buying a House
1. Initial Consultation
Let’s meet! Contact me and we can meet face to face or even just over the phone. During this consultation we will discuss the basics of what you are looking for. We can discuss any questions you may have about the home buying process and get acquainted with one another.
2. Get Connected with Lender
Getting the loan to buy your future home is a big part of the home buying process. Some people already have a preferred lender they would like to work with, but if you don’t, I have many great resources! When getting pre-approved, the lender will look at:
3. Establish Search Criteria and View Properties
Now that you know what you are pre-approved for, we can customize your search even more. Together, we will go view properties. Once you find a home you like, we will write an offer.
4. Make an Offer
When writing an offer, there are many important components. Some of the main items that we will need to discuss when writing an offer are:
5. Ratify Offer and Prepare for Closing
Once the seller accepts your offer and all parties have signed it, it is then a “ratified offer”, and your future home will go from “active” to “pending”. The escrow process varies in each transaction, but 30 or 45 days could be considered standard. During this time quite a few things need to happen. Some of the main tasks on the escrow to-do list are:
Here are some VERY critical points to consider when going through the home loan approval process. Please keep this handy!
** DURING THE LOAN PROCESS, THE LENDER WILL NEED TO VERIFY YOUR EMPLOYMENT. IF YOU ARE AWARE OF ANY REASONS THAT YOUR EMPLOYER MAY TAKE AN EXCESSIVE AMOUNT OF TIME FOR THIS PROCESS OR IF THERE ARE ANY CHANGES IN YOUR EMPLOYMENT STATUS DURING THE LOAN PROCESS, LET YOUR LOAN OFFICER KNOW IMMEDIATELY.
** YOUR TAX RETURNS WILL BE VALIDATED WITH THE IRS BY THE LENDER. THIS IS A STANDARD PROCEDURE FOR ALL LENDERS. IF YOU HAVE FILED AN EXTENSION OR FILED ANY TYPE OF AMENDMENT, PLEASE ADVISE YOUR LOAN OFFICER OF THIS INFORMATION AT THE TIME OF APPLICATION.
** DO NOT MAKE ANY LARGE DEPOSITS TO YOUR ACCOUNTS THAT YOU CANNOT PAPER TRAIL, ESPECIALLY LARGE CASH DEPOSITS. LENDERS DO NOT WANT TO SEE DEPOSITS THAT COULD BE MISCONSTRUED AS A LOAN OR FUNDS COMING FROM UNACCEPTABLE ACCOUNT OR SOURCE. TRANSFERRING FUNDS BETWEEN ACCOUNTS WILL ALSO REQUIRE A PAPER TRAIL, SO YOU MAY WANT TOREFRAIN FROM MOVING MONEY AROUND DURING THE LOAN PROCESS IF POSSIBLE.
** DO NOT APPLY FOR OR OPEN ANY NEW CREDIT CARDS OR MAKE ANY LARGE PURCHASES ON CARDS YOU CURRENTLY HAVE. LENDERS WILL PULL A PRE-CLOSING CREDIT REPORT BEFORE FUNDING YOUR LOAN TO ENSURE THAT NO NEW DEBT HAS BEEN INCURRED. IF THERE IS NEW DEBT OR HIGHER BALANCES, YOUR LOAN WILL HAVE TO BE RE-APPROVED WITH THESE NEW PAYMENTS WHICH COULD NEGATIVELY IMPACT YOUR RATIO’S, CAUSING A DECLINE OF YOUR LOAN. DO NOT CO-SIGN FOR ANY LIABILITIES DURING THE LOAN PROCESS.
** IF YOU ARE A WAGE EARNER (NOT SELF-EMPLOYED) , YOU MUST LET YOUR LOAN OFFICER KNOW IF YOU FILE ANY SCHEDULES ON YOUR TAX RETURNS SUCH AS SCHEDULE ‘A’ WHICH IS UN-REIMBURSED EXPENSES. YOUR W-2 AND PAY STUB WILL NOT REFLECT ANY TYPES OF DEDUCTIONS LIKE THIS AND IF YOUR LOAN OFFICER IS UNAWARE OF THESE DEDUCTIONS, IT COULD NEGATIVELY IMPACT YOU LOAN BEFORE FUNDING.
** CONTINUE TO PAY ALL LIABILITIES ON TIME, ESPECIALLY ANY LIABILITIES THAT ARE REFLECTED ON YOUR CREDIT REPORT. YOUR CREDIT IS AN INTEGRAL PART OF THE LOAN APPROVAL PROCESS AND COULD HAVE A NEGATIVE IMPACT IF NOT KEPT CURRENT AND IN GOOD STANDING.
** ENSURE THAT YOUR APPLICATION IS FILLED OUT IN ITS ENTIRETY. MAKE SURE ALL INFORMATION IS LEGIBLE AND CORRECT. EVEN A SMALL ERROR IN DOLLAR AMOUNT FOR INCOME OR ASSETS COULD TAKE VALUABLE TIME TO CORRECT AND HOLD UP THE FUNDING OF YOUR LOAN.
** MAKE ALL MORTGAGE PAYMENTS ON TIME. MORTGAGES ARE PAID IN ARREARS, THEREFORE, WHEN YOU MAKE YOUR PAYMENT, IT IS FOR THE PREVIOUS MONTH. DO NOT LET THE CLOSING OF YOUR NEW LOAN DICTATE IF AND WHEN YOU PAY YOUR CURRENT MORTGAGE. YOUR CREDIT IS IMPORTANT AND SHOULD NOT BE JEOPARDIZED IN ANY WAY.