I help a lot of first time home buyers and as a first time home buyer I understand there are many questions or concerns that they may have. I simply put together a short summary of the Loan Process here at NuHome Group. This summary is very brief to help not complicate things.
Qualification- you would need to provide certain documentation to be pre-qualified. Thirty days of Pay stubs, 2 recent months bank statements, 2 years tax returns w/ W-2's (2013-2012) or 1099’s and other forms of income may be requested, a front and back copy of your social security and photo ID is required.
Approved- you must know that the approvals are only good for 90 days, which is including finding your house. Thus only gives you about 45-60 days to find the house. If you can’t find a home within that time frame then you may need to be re-qualified.
Find house- work with your Realtor/ Representative to find you house. Remember if you are buying with FHA Financing there may be some restrictions. I have noticed that there have been many cases of people having trouble finding houses where the seller's don't want FHA financing. This can be troublesome. So make sure which you know what type of financing your obtaining (FHA or Conventional).
Negotiating the deal- there are some things that you should know about when negotiating for your home. If you ask for seller contribution for the purchase of your house the seller will give you the negotiated amount to be applied to your closing costs. FHA allows 6% and Conventional allows 3% or closing. If the seller pays the Title Policy and survey this will help lower closing costs.
Executed Contract- Once the offer is accepted you will be expected to pay the Earnest money to the Title Company for them to take the house off of the market.
Inspection- Once you have an executed contract you would need to have an inspection on the property you’re in process of buying. This very crucial and will help you know what exactly is wrong with the property if any. For example, this inspection will notify you whether the property has: Roof, electrical, AC, or plumbing damage. These are some of the the major things you are normally confronted with. If your problem is cosmetic then, it is at the discretion of both the seller and the buyer.
Appraisal- an appraisal is required for the banks to review. This is a professional analysis of the property and its value.
Disclosures- Once you have a pre-approval and contract then you would set an appointment at your earliest convince to sign disclosures so we can send your file to underwriting.
Loan Submission- Loan is ready to be reviewed by a Lender. In other words, your loan will be sent to a bank for review.
Conditional Approval- the loan will have conditions to be met in order for the approval. Once these conditions are satisfied then your loan would be sent to closing.
Closing- Before we can close your loan or schedule for closing we would need the Lender to provide us with the closing instructions for the Title Company.
Scheduling closing- Depending on the title company and the TIME OF MONTH! We will schedule the closing based on the Title Company’s availability and the buyer’s convenience and availability.
Closing table- you would go to the Title Company and sign all documents.
Funding- Certain documents are sent to Lender to review and assure that they have been signed.
Keys- keys are given to you when the loan is funded and money is dispersed.
Move in- Normally, 3 days before closing, you can start transferring the utilities so you can have your utilities by your official move in date.
That's about it. No problem, right?! I hope that this helps you better understand NuHome’s Loan Processing.
For more information about this subject or about loans contact us by phone at (713) 373-0345 or via email email@example.com.
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