Mortgages for First Time Home Buyers
Thinking about buying your first property?
Purchasing a first home is a major milestone in life but the mortgage process can feel a little bit overwhelming. The paperwork, requirements and fees can be complex and confusing, particularly the first time you deal with them. We are here to help.
Once you’ve decided that you are ready, both financially and mentally, to take on the responsibility of homeownership, then the the next steps are to examine and evaluate each of the loan options available so you’re sure to get the best rates and terms possible. With a little bit of patience, you’ll be well on your way to a happy home buying experience.
Typical Mortgage Process
The mortgage loan process largely consists of “mortgage paperwork”, which is mostly about providing documents needed for a mortgage that show how much you earn, where you’ve lived, monthly debts and account balances. You can provide much of this information in person or on your application.
Pre-approvals don't take much time. They involve pulling a credit report that shows your credit score and credit history as reported by third-party, respected institutions. This helps to be able to pinpoint a loan amount for which you qualify. Mortgage pre-approvals also signal to the seller that you’re a serious buyer.
Once you have found your home and made an offer you will hopefully have the deal approved by both parties. With terms of the deal approved by both parties, the purchase agreement (a binding offer) is signed by the seller and buyer. At this point, you can move forward to finalize the loan.
Mortgage Loan Application
We will work with you at this stage to gather the needed documents from you and start the loan application process. We will provide a Loan Estimate, which includes closing costs, the interest rate and monthly payments (principal, interest, taxes and insurance).
Loan processors gather documentation about the borrower and property, review all information in the loan file and assemble an orderly and complete package for the underwriter.
The underwriter is the key decision-maker. They closely evaluate all the documentation prepared in the loan package. They cross check to see if the borrower and property match the eligibility requirements of the loan product for which the borrower applied. Underwriters review the borrower’s credit history and their capacity to repay the loan.
The closing is the moment for which you’ve been waiting. It’s time to sign a bunch of documents and complete your purchase or refinance. Some docs seal the deal between you and the lender. Other docs seal the deal between you and the seller (if it’s a purchase transaction).
When everything is signed, your participation in the closing meeting is done. Congrats! The very last closing items happen in the background; the title company will complete the recording and funding.
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