Step 1. Pre-Approval Process
Your first goal for getting financing is to getting a pre-approval. This is probably the most important step in the home purchasing process. With this step you can set your home budget so that it fits your comfort level. Due to the fact that your home loan will probably be your largest monthly payment, it is important to make sure it fits your budget, as well as your needs.
The pre-approval process starts with an application either taken by me on the phone, on-line application, or face to face, whichever is the most comfortable or convenient for you.
After I receive the application, I will pull your credit, analyze your income and work history to determine a qualifying debt-to-income. At this point, I will give you options on financing, and together we will determine which program is best for you by taking into consideration your payment and funds you have to work with to secure the home.
I will do my best to educate you about the program we decide on so you have a full understanding about the ins and outs of any of the requirement for that program.
Step 2. Finding Your New Home
At this step you are working with your Real Estate agent. I have talked to them and given them details of your loan program so we are all on the same page. The agent will pull up a range of homes in the marketplace that will fit in the budget we decided. In many cases, you will get introduced to an agent through friend or family member, and if you don’t have an agent I have had really good success helping my clients find a comfortable agent.
I always recommend that you have an agent working on your behalf. I believe we all need someone on our side handling the details for us, which helps reduce the stress level.
If you are choosing to forego the help of a real estate agent, pleas know you will be responsible for all details of the transaction. This includes the contract, inspections and communicating with the sellers. I handle the financing the same in this situation as I would if a real estate agent was involved.
Once a property has been found, your agent will write up a contract with an offer based on your input and mine. At this point, I will send an approval letter over to the agent to go with the offer. As soon as the contract is negotiated and secured you will move on to step 3.
Step 3: Application and Closing
After the contract has been secured, the realtor will send it to me so we can finish up the application process. The first action will be to set an appointment up so you can bring me the following items.
Drivers License and Social Security Card
Most current 30 days of pay stubs
W2 and Federal tax returns for the last two years
Most current 60 days of bank Statements which must have bank name, account number and your name on them with all pages of the statements
Most Divorce situations will require the divorce decree.
Child support income will have to be backed up by 12 months of history of receipt and continue for 3 years
There may be additional documentation required based on the loan program we are using which will be disclosed when we set the application appointment.
Once I have the signed application with the required documentation, The file moves to our processing department. The processor will order verification of employment, title and appraisal.
The file will go to an underwriter for preliminary review so we are aware of any additional requested disclosures.
After we have received all required documentations, verification of employment, title and appraisal, the file goes back to underwriting for a final review. With a successful review we will have a clear to close.
With the clear to close the file goes to our closing department and they work with the title company to finish up the final HUD which is the final financial statement that shows all the closing costs involved in the transaction.
On closing day, you will sign the final HUD and all disclosures. At the closing you will be required to bring your driver’s license and a cashier’s check for any funds you are required to pay. Once completed the realtor will hand you the keys to your new HOME!
This basic procedure will apply to a refinance transaction but will not have a realtor involved; I will handle all aspects associated with the refinance.