Home Purchase And Mortgage Process For First Time Home Buyers

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

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:

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

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.

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