Steps to
Buying a Home

 




Mortgage Application

Once the inspection hurdle has been cleared . . . your focus turns to financing. It is your responsibility to obtain your mortgage promptly.

I usually provide your lender or mortgage broker with basic information about the property but it's up to you to complete the mortgage application, provide necessary documents and resolve any questions which may arise about your credit report.

There are many types of loan programs on the market today . . . It's possible to obtain a "no income verification" mortgage which will save you some time and trouble but may cost you money in the form of a slightly higher interest rate or "points."

Lending guidelines have tightened considerably of late . . . Providing documentation of your income and assets will greatly enhance your eligibility and probably get you more favorable terms.

You should be prepared . . . to deliver tax returns for the last two or three years, copies of bank, brokerage and retirement account statements and your two most recent pay stubs to your lender. It's a good idea to have this material gathered and organized when you first start looking at property.

The sales contract you've signed commits you to meeting a deadline for obtaining your mortgage so time is of the essence in completing your application.

Soon after you've submitted the application . . . the lender will schedule an appraisal. Appraisers are licensed by the state and are objective third parties with special training and expertise in determining the fair market value of real estate.

The home you wish to buy . . . must appraise for at least the sum you intend to borrow since no lender will, or should, lend you more than what the property is worth. A mortgage is, after all, a secured loan, meaning that the lender has a claim on your house until the mortgage is fully paid. Lenders have no more interest in overpaying than you do.
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