Learn the proper steps to getting a mortgage
You’ve got your shoes on, your car keys in hand and you’re ready for one of the most exciting times in your life. You’re heading out to find a new home! But wait – before you even step a foot into an Open House, you need to know the proper steps to getting a mortgage. Taking these steps below in the correct order will save you time and help the home buying process go smoothly.
1. Get Pre-qualified
2. Work with a Realtor to find your perfect home
When buying a home, you’re going to come across many forms, disclosures and industry specific jargon. A Realtor is familiar with all these things and can be your expert guide. He or she can also help pinpoint a home that fits your needs, budget and then negotiate an offer.
3. Make an offer
The purchase offer is the first formal communication you’ll have with the seller of the home. It will tell the seller things like what you’re willing to pay for the home, what you expect for a closing date and will also state any additional terms of the sale. Examples include who will pay closing costs and how real estate taxes, utilities, etc. will be prorated between buyer and seller.
4. Provide necessary documentation to your loan officer
Once you’ve made an offer on a house, it’s time to gather the following paperwork –
- W-2’s and/or tax returns for the past two years
- Current paystub from the last 30 days
- Bank statements from the 2 most recent months
- Copy of your purchase agreement
- Your homeowner’s insurance agent name
- Child support agreement/divorce decree (if applicable)
You will need to get the documents to your mortgage lender.
5. Your loan is processed, underwritten, and approved
Your mortgage lender will create a loan file and will give it to an underwriter, who is team member in our mortgage department. The underwriter’s job is to assess the risk of the loan.