Home Buying & Financing:
Taking the Steps to Reap BIG Change
Have you set yourself a goal of buying a home in the Chicagoland area?
If serious about buying, I'm betting you've tried to grow your savings, improve your credit standing, and raise your credit scores ... and chosen to work with a Mortgage Originator (because that's the fastest most efficient way) to help you do so.
You've been successful and you're now in a much more advantageous position to buy. But what comes next?
Because of your decision to work pro-actively with an Originator prior to entering the home buying/financing process, you're ahead of many mortgage applicants. You're better prepared and positioned to buy as you move forward. You're organized and you've laid out your purchase objectives. They're clear to you and your Originator.
Your Originator is already well-versed on your credit standing, income(s), debt(s), savings, credit and more. The initial act of the home buying process ... Pre-Qualification ... should be a breeze for you because of the preliminary actions you've taken.
This Pre-Qualification portion of the home buying process is a great time for you to search and find the Buyer's Agent that will assist you during your home purchase. Upon meeting, that agent will ask you a variety of questions.
Especially if seeking to buy a home in a highly-competitive housing market, one of the first things your Agent will want to know is ...
Are you working with a Mortgage Originator? Have you been Pre-Approved?
Once again, this next portion of you rhome buying process should flow more smoothly for you because you've been working with a Mortgage Originator during the time leading up to Pre-Approval. Much of the needed documentation required for Pre-Approval may be in their possession already.
What type of information and documentation will your Originator need to complete your Pre-Approval?
Your Originator will need info and documentation related to your:
- Employment (Name, Address, Tel. # of Employer(s)
- Income (W-2, Pay Stubs, Tax Returns, etc.)
- Bank accounts (Investment, Savings, etc.)
- If Renting: Name, Address, Tel. # of Landlord, plus proof of 12 months of paid-as-agreed rent (Signed Statement from Landlord may be needed)
* Click HERE for my Checklist of Documentation/info
Requested during Pre-Approval
After this important preliminary step is successfully completed, you can view homes with your Buyer's Agent. With a Pre-Approval in hand, you can make an offer on your dream home. Sellers will know that you're serious about buying ... and also have the means and financing to successfully do so.
If you offer is accepted, what then?
The following is a step-by-step guide that will lead you through the remainder of the home loan process:
- Contract/Agreement of Sale: The Home Inspection is ordered, then completed. Requests for repairs/or credits are negotiated at this time.
- Application Process: A full Application is taken (either in-person or electronically) and completed. Loan Terms are finalized.
- Appraisal/Report Ordered: Paid for by the Buyer, the Appraisal is ordered. The Title Report is also ordered.
- Homeowner's Insurance: The Buyer/Borrower should start shopping for their home insurance policy.
- Processing: Mortgage Processor completes and submits all updated info, verifications, etc.
- Appraisal Report Received: Appraisal is reviewed by Lender. Buyer is emailed a copy within 3 days of its receipt.
- Underwriting: Originator/Mortgage Processor submits the completed file to Underwriting. When/if approved, an Approval/ Conditional Commitment Letter is sent to the Buyer (and Attorney, if applicable) for review.
- Commitment: Buyer is updated on their file and any outstanding items needed by Underwriting. Outstanding items/conditions are submitted.
- Final Clearance: Upon all items being submitted, final clearance is provided.
- Clear-to-Close: Buyer is notified that they have received a "clear-to-close" via the Underwriting process.
- Closing Disclosure is sent.
- Closing Date is scheduled/coordinated between parties.
- Loan Documents are drawn and delivered.
- Final Closing Disclosure: Prepared by Escrow - Closing Department. Discloses all costs and expenditures, including the Buyer's "Cash-to-Close" for Closing.
- Final Walk-Thru is performed.
- Closing Day - Signing of Documents: Loan documents are signed. Funds are provided for Closing. All documents are reviewed and the transaction is officially closed.
There are many steps to be taken during the home buying process. Some small, some large ... some easy, some more detailed.
That makes it imperative that good communication be practiced by all parties (buyer and professional) throughout each step. Every communication must be performed in a timely manner. Each conducted thoroughly and clearly.
When this is done, the process will be smooth, successful, and enjoyable. Exactly what home buying should be ... and the BIG change you wished for.
* Hoping to Buy or Refinance a home in the New Lenox - Chicagoland/IL or WI area? Contact Me today! I'll put my 40 years of mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI Lic. #216987
American Portfolio Mortgage Corp.