Ten Steps to Buying a home this year. Step 9. Applying for a mortgage .

By
Real Estate Agent with RE/MAX Centre Realtors
http://activerain.com/droplet/5cjs

Most buyers require financing when buying a home. If you are paying cash, some of this may not apply to you..

If you are  financing the purchase,  you should apply for a mortgage within the time frame mentioned in the agreement.

You have already been prequalified by the lender before you started your search. Now you should make a formal application.

If you had already been preapproved, provide the agreement of sale to the lender .

DO NOT PROVIDE FALSE INFORMATION.

The lender will require bank statements, tax returns,pay stubs, 1099s, and lots more information. If you made a large deposit into your account recently he may ask for a written explanation. Provide everything in a timely manner so that your loan will be approved by the mortgage commitment date as mentioned in your agreement. If there is going to be a delay have your agent prepare an addendum for  sellers to sign and agree to it.

Do not apply for any other credit at this time. It may affect your ability to quailfy for the mortgage for which you were prequalified as it will change the ratios.

Do not change jobs. If you change jobs inform the lender immediately. Different lenders have different criteria these days.

If your job picture changes in any way inform the lender right away.  I  had a sale where the buyer was in  an accident, was unemployed for a month and was on temporary  disability. The mortgage commitment date was extended till he got to work full time again.

Some buyers shop for a lender who has lowest rates. When you compare lenders compare apples to apples. Know the difference between points and no points when they quote you  a rate. Ask the lender for all the other charges as well.

There are some lenders  who do not lend money  for purchasing   condos.

The lender will require title insurance and home owner insurance/ hazard insurance on the property prior to settlement. You should get insurance even if it is  cash deal.

Your agent or attorney can help you get title insurance. You can shop for home owner insurance. Most companies give you a discount if you have home and auto insurance with same company but it is still a good idea to compare.

The most important thing to do is to pay all your bills on time and  not apply for new credit .

You can buy your furniture after settlement or pay cash. Do not pay by credit card  unless your income supports additional debt. 

 

 

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When you read about events please check the year for the event as some people find information a year later and think it is for that year. . The posts remain online even after the event.

Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

IF YOU WOULD LIKE TO SUBSCRIBE TO MY BLOG         CLICK HERE   OR EMAIL ME AT Gita01@aol.com

 

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Rainmaker
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Gita - this is another informative post is a wonderful series for home buyers. 

May 04, 2018 10:53 AM #13
Rainmaker
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Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Gita,

What a wonderful series in reviewing the buying process for those looking to buy.  I hope many call you who have read this series.  A

May 04, 2018 12:52 PM #14
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Gita- what a wonderful series you have created!  And applying for a mortgage is critical!

May 04, 2018 06:05 PM #15
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Grant, I hope they will read this post

May 05, 2018 04:16 AM #16
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Alexandra I hope they will call me

May 05, 2018 04:17 AM #17
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Kathy, I agree.

May 05, 2018 04:17 AM #18
Rainmaker
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Gita.  Great advice for those who will be applying for a home loan.

May 05, 2018 04:41 AM #19
Rainmaker
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Patricia Feager
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Good Morning Gita Bantwal - I love this series! Most intriguing to me is how you addressed issues many Cash buyers fail to consider, such as Title Insurance and Home Insurance. I had a buyer last year who was reluctant to pay any more than what the price was for the house. I kept reminding them of the importance and finally they listened. The property (house) was split right down the middle, 1/2 in flood zone; the other half not. It would have been impossible to get an Insurance Co to insure it so they walked and found something else. 

This is a great series. I hope it gets featured!!!

May 05, 2018 06:02 AM #20
Rainmaker
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Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists

Gita, Being prepared before going on the home search is such an mportant step in buying a home.

May 05, 2018 06:07 AM #21
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Gabe, thank you for reading

May 05, 2018 06:32 AM #22
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Patricia, thank you for your comment

May 05, 2018 06:32 AM #23
Rainmaker
3,957,495
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Sheila, I agree.

May 05, 2018 06:32 AM #24
Rainmaker
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Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hello Gita.  A well-conceived post!  With the majority of homebuyers obtaining a mortgage(especially first timers) this is a must read. 

May 05, 2018 10:53 AM #25
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Good job on this series, Gita. These posts are taking a buyer step by step and you are explaining the process beautifully.

May 05, 2018 07:45 PM #26
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Gita,

I had a situation recently where an accident placed the buying process on hold.

You post provided good tips for potential home buyers.

May 05, 2018 11:34 PM #27
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Michael, I hope they will read it 

May 06, 2018 03:30 AM #28
Rainmaker
3,957,495
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Debbie, thank you for reading

May 06, 2018 03:31 AM #29
Rainmaker
3,957,495
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Jennifer, thank you for the comment

May 06, 2018 03:31 AM #30
Rainmaker
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Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great advice Gita, and from the loads of comments many agree with me!

May 07, 2018 06:53 AM #31
Rainmaker
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Kristin, I hope buyers will read this.

May 07, 2018 01:22 PM #32
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Rainmaker
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