Rebecca Richardson - Mortgage Consultant
Buying a home has plenty of nuances that the average person might not be aware of when beginning their journey. It can be hard to find all the right information, so below, I’ve broken down three key bits of knowledge that you should know before you buy! After all, an educated buyer is a strong buyer.
Consider Quality Over Speed With Your Pre-Approval
I’m sure you’ve seen those advertisements offering a pre-approval in 5 minutes with no documentation. I’ve seen them too, and let me tell you, I wouldn’t buy a pack of gum with a pre-approval letter like that.
When it comes to getting pre-approved, the goal isn’t speed, it’s accuracy. An accurate pre-approval letter not only gives you a comprehensive understanding of your financial picture before buying a home. It also sets you up for a smooth approval process once you’ve had your offer accepted.
Buying a home is a significant financial and emotional investment. It’s important to take the time to ensure that you’re on solid ground with your mortgage strategy before putting your money on the table. There are plenty of complex little details regarding your income, credit, debts, and savings that matter a lot more than. You might think.
When making this kind of commitment, you owe it to yourself to work with a lender who will take the time to fully review and document your file to avoid expensive surprises. If you take the time and plan ahead, you’ll make sure you’re not paying the price.
Don’t Make These Mistakes When Buying Your First Home
Buying your first home is an incredibly exciting process, but it can also be easy to make some common and costly mistakes. Prepared homebuyers are the best homebuyers, and when you’re making a purchase at this dollar amount, you want to make sure you’re doing it right.
Talking to just one lender is one of the most common mistakes people make. Shopping around for a good rate is one of the most obvious benefits of branching out to multiple lenders, but it’s also important to make sure your lender is a good fit. They should understand your unique situation and meet you where you’re at by educating you and being transparent through every step of the process.
It's uncommon for you to know all the ins and outs of the mortgage process. After all, it’s your first time going through it. My advice is to make sure you’re talking to a couple well-vetted people as part of the process. Their expertise will go a long way towards making your homebuying journey stress free.
Step-By-Step From Being in Escrow to Homeownership
You did it! After months of budgeting, shopping, and submitting offers, you have a home under contract. But… now what? Now that you’re under contract, there are still plenty of steps before you park the moving truck outside of your new residence. Let’s break down the steps below!
Submit your Application: This is when you lock your rate, sign disclosures confirming details of your loan and the home you’re buying, and have your appraisal ordered.
Loan is Processed: Here, a processor will review your application to confirm that we have all the required documentation.
Underwriting: Your income, assets, and credit information will be reviewed to confirm that your loan meets the guidelines and that you can be approved.
Closing: Once your loan has received final approval from an underwriter, you’ll close on your home. At this point, any outstanding money for your down payment and closing costs will be due.
Funding & Recording: During this step, the lender provides the funds needed for the loan as well as certain closing documents to the title company.
First Payment: Usually, you’ll start making payments on the 1st of the month following your first full month of ownership.
As you can see, there’s a little more to buying a home than having an offer accepted then moving in. As we mentioned previously, all these steps will go by smoothly with an accurate pre-approval letter given to you by a well-vetted lender who you trust.
I’ve helped countless buyers from all different backgrounds achieve their dreams of homeownership, and I’d love to help you as well! If you’re ready to get started, reach out and let’s get started!