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Mortgage reps where very knowledgeable. I received several offers over the phone within minutes!
Eric K.
Charlotte, NC |
As a first time home buyer, I wasn't too sure about the options available to me. My mortgage rep showed me what to do and now I own a home...Thanks!
Angela M.
Cranston, RI |
refinance was smooth and easy.
J. Stone
Ft. Myers, FL |
The other mortgage company
said my loan couldn't be done, you did it in a week.
N. Sisto
Clifton, NJ |
I really did receive the
loan, I still cant believe the offer I got!
A. Garcia
Boone, NC |
My friend recommended your site, now I know why!
P. Johnson
Los Angeles, CA |
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First Time Home
Buyers
Step 1:
Qualifying For a Home Loan
The first step is to figure out the amount that you are qualified to
borrow, and determine the options available to you. This will increase
your borrowing power. There are many Lenders that have programs that allow
first time homebuyers to put little or no money down depending on your
credit history and loan amount.
Complete the online form and we find the Lenders that will pre approve you
based on the information you provide. If you have not begun to look for a
home, you can estimate the property value. This will at least give you a
starting point.
Once you complete the online form, the lenders that fit your criteria will
contact you to make their best loan offers. They will also discuss the
lending options that are available to you.
You should consider:
The down payment
This is the amount of money you have available to put a down payment on
the house you want to purchase. Depending on your credit history, you may
qualify for a loan program that requires 0% down.
Don't forget to budget for closing costs
There are other costs beside your down payment associated with purchasing
a home. First time homebuyers have to take into consideration closing
costs. Some additional fees associated with closing costs are points,
lender's fees, title charges, escrows for your property taxes and home
owners insurance. Many loan programs allow the seller to contribute up to
6% of the sales price to your closing costs.
What monthly payment is comfortable for you
Just because you qualify for a certain loan amount doesn't mean you are
required to use the maximum financing available to you. Along with the
mortgage payment, property taxes, homeowner insurance and all of your
monthly liabilities don't forget to budget for thing you like to do.
Vacations, entertainment, future college tuition etc. also cost money and
you do not want to deprive yourself. You do not want overextend your
budget and work solely to make your mortgage payment.
Step 2:
Choosing your loan program
Once your loan application is pre-approved, our Lenders will review the
loan options that are available to you. They will help you determine what
type of loan is best-suited to your financial and personal situation.
Once you choose your loan program, your Lender will issue you a
pre-approval letter. Your Pre-approval Letter will include your maximum
financing, your loan program details and your monthly payment. You can use
this letter to go shopping for your new home.
You should consider:
Your financial situation
How much money do you have for a down payment and closing costs? Will this
totally empty your bank account? You may want to consider a loan program
that allows you to put less money down so that you have some money in
reserves.
The length of time you plan on staying in the home
Most first time homebuyers sell their homes within the first five years of
purchase. You may not want to spend a lot of money on points to get a
lower rate on your mortgage because you will not be in the house long
enough to recoup your savings. Also, you may want to consider an arm that
has a lower monthly payment. If you plan to sell your home within two
years you may want to consider an FHA one year arm. If the rate for the
first year is 5% the maximum your loan can increase is 1% in the next
year. So the second year interest rate cannot exceed 6%.
Your personal credit history
If you have less than perfect credit, there are loan programs that will
allow you to work on improving your credit and reward you for doing so.
For example, our Lenders have several rewards programs that allow you to
enjoy a reduction in your interest rate without refinancing. If you make
24 months mortgage payments on time, your rate will automatically reduce.
They also have adjustable rate mortgages that will allow you to convert to
a 30 year fixed at each adjustment period. Ask your Lender for details of
special financing programs.
Step 3:
Going House Shopping
Once you have been Pre-qualified, choose your loan program and have been
issued a Pre-approval certificate, it's time to go house shopping. It is
recommended that you seek the services of a professional real estate
agent.
Once you have found the home that meets all of your needs, you will
negotiate a sales price and then sign a sales agreement. Many homebuyers
have an attorney review this contract to make sure everything is in order.
You should consider:
Your real estate agent
Be sure to use a real estate agent that works for you. Your real estate
agent should be knowledgeable and familiar with the area that you want to
purchase your new home. The best way to find a good real estate agent is
to ask for referrals. Pick an agent that wants to work with you in
fulfilling your home purchase needs.
The length of time you will remain in the home
If you plan on never moving again, will this home meet your needs? Do you
plan on moving in a few years? Are you planning a family or will your
income increase over several years? It is important to know how long you
plan on staying in your home before you purchase.
The neighborhood
Don't make the mistake of purchasing a home in a neighborhood you know
nothing about. Will this neighborhood meet your needs? Ask the neighbors
the true story about the neighborhood.
Type of Property
Are you looking for a single family home, a townhouse, or condo? Before
you begin your house shopping, decide what type of property that will
satisfy your needs. Also don't purchase a house that may be hard to
resell. When you are looking for a home, think about how you would sell
it!
Step 4:
Processing & Final Loan Approval
Now that you have found your property and have a signed sales agreement,
it is time to process your loan application with your Lender for final
approval. This step gathers and verifies all the documentation for your
loan. A real estate appraisal will be preformed to determine the value and
condition of the property you are purchasing. Your title work, a survey, a
house inspection (not the same as an appraisal) and a termite inspection
may also be ordered.
Once your file is complete, it is sent to underwriting to validate the
documentation provided by you. The underwriter may request addition
documentation at that time. Most Lenders' use automated underwriting
systems. This allows the lender to speed up the lending process.
Once your information is validated, you will be issued a final loan
commitment. Then you can schedule your settlement.
You should consider:
Providing Documentation
Be sure to give yourself plenty of time to process your loan. Time is of
the essence. When documentation is requested, it is in your best interest
to forward the information to your Lender as soon as possible. Often
times, your file can not be moved to the next processing step without the
necessary documentation. Providing documentation on a timely basis will
make your loan application process much smother.
Coordinators, Loan Processors, Mortgage Representatives
We realize that the lending process can be very stressful. There is a lot
of work to be done. That is why our Lenders have an informed staff that
will help you through every step of the way. If you need assistance with
any matter, make sure to contact your Lender directly.
Part 5:
Going to Settlement
This is the final step in purchasing your new home. This step is the
actual closing of the real estate transaction between you and the seller
of the property. Generally, the settlement takes place at the title
company. All of the interested parties meet to sign the final
documentation. You may be in the room with the seller, the seller's real
estate agent, your real estate agent, your attorney and if the seller
brings an attorney. This final step will need to be coordinated with all
partied involved.
Once all of the settlement papers are signed and monies are exchanged, you
receive the keys to your new home, along with copies of all the closing
documents. Congratulation- You are now a proud new homeowner!
You should consider
Your down payment and closing costs:
Request a copy of the HUD settlement statement prior to your closing. This
form summarizes the entire financial transaction. It will also let you
know the amount you will need at the settlement table. In most cases you
are required to bring certified funds to the settlement. You do not want
to be short money at the settlement table.
Your Timing
If you are currently renting now, planning the move to coincide with the
end of their lease often creates a big dent in the budget. Check with your
landlord about an early release or extension of your lease when you
consider buying your first home.
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