Home Buyers, Money and Mortgage
What Goes into the Mortgage Process?
Buying a home is an exciting journey that requires certain steps to complete. However, our team at HomeHunt understands how stressful things can get. Knowing the steps to secure a home mortgage will help this process go as smoothly as possible.
Submit Your Mortgage Application
Once you found a home that you want to buy and a specific lender to work with, you will then fill out a mortgage application. This application will require certain documentation relating to your personal information and finances. You should be prepared to share the following information:
- Income and employment history
- Tax returns
- Marital status
- List of dependents
- Assets and investments
- Debt and liabilities
- Property address
- Social security number to check your credit
Home Appraisal
Your lender will likely request a home appraisal before transferring your loan to underwriting. The lender does this to protect their investment. An appraisal will determine the property's market value based on current real estate conditions. If the value is less than the loan amount, the lender can adjust your loan without losing money.
Home Inspection
After you fill out an application, schedule a home inspection as soon as possible. The sooner you have your inspection complete, the more time you have to fix the problems that the inspector uncovered.
Obtain Homeowners Insurance
A standard homeowners insurance policy insures your home’s structure and belongings in the event of a destructive event, such as a fire. Your lender will require proof of insurance before your home loan can be fully approved.
Communication
Keep in contact with your lender and buyer’s agent. They are your go-to people for information regarding your loan and your new home. Your lender will order a home appraisal to ensure that the home you are buying is comparable to the purchase price. You will need to communicate with your lender to understand the outcome of the appraisal. There are many things happening behind the scenes that you will want to be informed of.
Avoid New Debt
While your loan is processing, avoid opening any new credit cards or making large purchases. New debt can affect your debt-to-income ratio and cause an interruption with your mortgage approval.
Pay Your Down Payment
Once of the final steps is paying the down payment. You will need to secure a cashier’s check or arrange a wire transfer to cover your down payment and any other closing costs.
Close on Your Home
Final step, close on your new home! At your loan closing, be sure to read over all documents and ask any last-minute questions. After you sign the final paperwork, the keys in your hand will never feel more exciting!
HomeHunt is excited to welcome you to your new home! We can help streamline your mortgage process and walk you through this journey. Contact us today!