Buying a home today can be a little scary and not quite as easy as it was 10 years ago. So many changes have been made to the lending process along with tighter guidelines and more documentation required. Here are some things to expect with each step of the home buying process.
When you find your perfect home and you decide to make an offer, be prepared to most likely receive a counter of some kind. Also, be sure to talk with your agent about closing costs, pre paids and seller concessions. You will need to have the funds for these things at the closing unless you ask the seller to pay for them as a seller credit.
After an agreed upon offer is accepted in writing, you now have a fully executed contract. You will have negotiated a certain number of days to complete a whole house inspection along with a certain number of days to reply to the repair addendum. Once all of these repair requests have been ironed out and a decision has been agreed upon, the process will continue to move forward.
At this point your lender should be asking for documentation to continue the loan process and get everything ready and prepared for underwriting. This is where the underwriter's review all of your financials and income in detail to make sure you meet all of the investor's requirements for them to approve you for a loan. It is extremely important that during this time you do not make any large purchases, take out any lines of credit, open a credit card, get a loan for a car, buy a washer and dryer, quit your job, change jobs, get married, get divorced, make any large purchases on a credit card or make any drastic change whatsoever.
Even if you hear the words, "You are cleared to close", that does not mean you are set to close. The lender will pull your credit again and do a verification of employment either the day before or the day of your closing. If anything has changed, you will not close on your loan. They will have to re work all of the numbers and set a later closing date for roughly 2 weeks out, or you may no longer qualify for the loan and you will not close at all.
It is extremely important that you have a Realtor that is experienced and can guide you through the entire process with proper knowledge. You can reach out to Cristen Appleton at Real Estate Victory and ask for her help or guidance with your real estate needs!
Author:Cristen Appleton Phone: 513-706-2680 Dated: January 20th 2015 Views: 6,949 About Cristen: ...