The home buying process can seem very overwhelming at times. This report will be in several parts and hopefully will make planning a little easier for you. I am in Tennessee but the information will be good no matter what state you are in. This post is designed to give you an understanding of the loan process; a timetable and items needed. Try to relax; Buying a home should be a FUN ADVENTURE! I am here to help you through the process.
You will hear several terms... buying power worksheet...pre-approval... commitment letter...loan approval..........................What does it all mean?
Buying Power Worksheet (BPW) - This form will have your income, debts and employment history and will provide me enough information to give you an estimate of how much house you can buy under current lending guidelines and the loan programs available. There is no cost associated with this service and helps to establish a road map to financing your new home purchase.
Pre-Qualification - is not an approval from the underwriter, it is an opinion made from the information you provided and your credit report. This is a quick and easy way to find out what types of loans are available and how much you can qualify for. I can tell you if you are within the lender's guidelines; give you a price range for your new home, estimated down payment (if any), money required for closing and estimated house payment at this time. The pre-qualification is based on the information given by you, so it is very important that you give an honest picture of your financial situation. Our goal as a Lender is to get you approved for a home loan and answer all your questions so you understand the home buying process. This should be your first step in buying a home! Then you are ready to start looking with your Realtor.
Commitment letter - is a letter given by the Mortgage Company stating that you, the borrower, are qualified for a home loan. This is issued after reviewing your credit report and income information provided by you. This letter is normally contingent to verifying all the information and final loan approval by the underwriter. A commitment letter is used to show the seller that you have seen a lender and are qualified for a home loan. When a Seller sees this they know you are a serious Buyer!
Approval - Hooray!! You have done your loan application, the underwriter reviewed your loan documents and our verification process and approved you to purchase a home. You can select a home within your price range with confidence because you are approved. The last step: is when your property information is processed and approved by the lender's underwriter. This is the final step to homeownership. The property must meet certain standards before we can close your loan. We will need a sales contract, property appraisal, termite inspection, title search, proof of homeowners insurance, and in some cases a property survey. We will take care of everything but your homeowner's insurance policy; you must make this selection. The next step is closing & you will be a NEW HOME OWNER!
When should I contact a lender? It is never too soon
For any questions Contact Brenda Tressler at brenda@imsiloans.com
I look forward to hearing from you!
FOR MORE INFORMATION FOR FIRST-TIME HOMEBUYERS... JUST CLICK ON LINK BELOW!
Thanks for visiting me! I am very excited about this group and thanks for letting me be a part of it! See you around... I am going to read some more of your fine post! Have a great day! Brenda :)
Robin: Thanks for visiting and leaving me a comment... it is always nice to see you! Brenda :)
Hello dear friend! We are doing fine... I am here posting comments and thinking about what my next post could be about. I need to get back to my New Buyers information posts. I hope all is well up your way and thanks for the visit! Brenda :)
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