FIRST TIME HOME BUYERS: YOUR SIX MONTH PANSeptember 19, 2019
Herersquo;s what to do financially when yoursquo;ve decided to stop renting and start owning.
Yoursquo;re still sort of in the exploratory phase but yoursquo;re still committed on buying your first home. Yet buying a home isnrsquo;t something you should do on your own, especially as it >
Now itrsquo;s time to get some referrals for financing. You can get them from your selected real estate agent, friends and family or your financial planner or CPA if you have one. Once you make your choice about where yoursquo;re going to get your first mortgage, yoursquo;ll then speak with your loan officer over the phone or at the place of business. This is the prequalification stage. After a >
Itrsquo;s getting closer. But now itrsquo;s time to submit a loan application to your loan officer. Most often this is done online but your loan officer might offer to come to your home or place of business and take the loan application face to face. Yoursquo;ll sign a list of documents, most importantly your loan application and authorization forms allowing the lender to inquire about your employment and credit history. Your loan officer will electronically submit your application to an automated underwriting system which will, within a matter of moments, provide a list of items needed to get your loan to the full approval state. You will then have a preapproval letter in hand. Itrsquo;s time to submit copies of your pay check stubs, bank statements and tax returns if needed.
Your loan officer told you not to make any sudden changes about your work, employment or make any >
By now yoursquo;ve likely looked at your fair share of homes and you may very well be in a position to make an offer. You should always keep in close contact with your loan officer as well. Interest rates move over time and itrsquo;s possible that rates have gone up which effectively lowers the amount you can qualify for. Conversely, rates may have gone down and your buying power received a boost.
Yoursquo;ve found a home. Wheels begin to spin rather quickly after the contract has been signed. Your lender will need an appraisal and many lenders ask for money to pay for an appraisal upfront. Your loan will be reviewed one more time and any expired documentation will need to be updated. Credit documents such as a credit report, pay stubs and bank statements need to be no more than 30 days old when itrsquo;s time to fund the mortgage. Once your loan has received full approval and yoursquo;ve met all your loan conditions, loan papers are orders. At your closing, you will sign a host of closing documents and have your down payment if needed and closing cost money wired to the settlement agent. After signing, the lender does one more review of your file, making sure all the documents have been properly signed. Yoursquo;re now a first time home owner.