Home Purchase And Mortgage Process For First Time Home Buyers

Gustan Cho Associates are mortgage brokers licensed in 48 states

This BLOG On Home Purchase And Mortgage Process For First Time Home Buyers Was PUBLISHED On November 25th, 2018

What does the mortgage process look like for first-time home buyers

Starting Home Purchase And Mortgage Process:

The first thing you want to do is contact one of us for your pre-approval.

  • We can let the loan officer know if you are ready now or you might need to work on a few things
  • When you call us there are 3 major things we will need to know
  • First is how is credit, credit scores, credit payment history
  • Credit is one of the most important things a Loan Officer will go over with borrowers
  • If the credit score is too low we will assist on how to get scores maximized
  • If the debt is high we will advise you on what to pay off
  • If you have Bankruptcies or Foreclosures we will let you know of important dates we may have to wait for
  • So this is the first step and most important
  • Once we have established that your credit is ok we will discuss income and what is usable and what is not

In this article, we will discuss and cover Home Purchase And Mortgage Process For First Time Home Buyers.

Qualifying Income And Employment

W2 income is always the easiest:

  • We can usually go of your current salary and your past income doesn’t matter
  • If you have overtime, bonuses or self-employed we need to average income
  • Plus we need to determine a 2-year job history

So this step is sometimes complicated and you may not make as much qualifying income as you might think.

Verified And Qualified Funds For Home Purchase And Mortgage Process

What are the verified and qualified funds for home purchase and mortgage process

After we have credit and income squared away we then discuss how much money you have for the down payment, closing costs and reserves:

  • A good rule of thumb is you must have 3.5% in the bank of clean funds
  • This means no odd deposits like cash or friend paid you back some money you lent them
  • If you don’t have the 3.5% you can get a gift
  • In general the more money you have the easier the approval process will be
  • Closing cost can be $7,000
  • If you cannot come up with this I always recommend asking realtor ask for sellers concession credit for this from the seller

Finally, we can now write you a pre-approval after all these issues are addressed.

Starting Home Purchase And Mortgage Process With Solid Pre-Approval

Now you go out with your realtor with our pre approval and purchase your home.

  • When you have a contract then what we need to do is package up all the documents that verify your job history, credit, income and assets
  • We package this up and submit to one of our underwriters
  • While the underwriter is reviewing these documents we order the appraisal, title and homeowners insurance
  • When the underwriter approves you they will give us a list of conditions to satisfy
  • Conditions are a list of more paperwork clarifying your financial and credit history
  • When we submit all conditions, appraisal, title, and insurance we are now in review for a Clear to Close
  • These are my favorite words
  • This means we can close in 3 days and we are done

This BLOG On Home Purchase And Mortgage Process Was UPDATED And PUBLISHED On November 25th, 2018