In this article
Determine Your Housing Needs
Whether it’s deciding on the type of home you want – what you should expect to pay for it – to getting the right mortgage, we walk you through every step.
Before You Find a Home
Take the time to explore the area thoroughly. Get to know the neighborhood to appreciate its character both day and night. You’re making a long term investment so you want to be sure that the neighborhood, schools and transit system fits your lifestyle.
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We will help you to identify the type of home by covering the pros and cons of each home type.
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Working With a Realtor
Start by asking for referrals from friends or your licensed mortgage advisor or consider going to open houses in the area you want to live in with the ultimate goal to find a home that fits your lifestyle and to see how the realtors work and if their personality is a good fit for you or not.
If you are going to be spending quality time house hunting with your agent you have to get along and tell the agent what your wish list is so that he or she can find the right listings to show you.
Make Your Offer
This is where having a realtor on your side can actually help you find the right home faster than doing it on your own. They will help you make an informed decision based on an analysis of recent sales in the area and your budget based on your pre-approval letter to get you to the right offer amount. Your realtor will also assist with negotiating seller paid closing costs, estimated closing date, and any other concessions that may come up during the process.
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After you find a home you may make a conditional or contingent offer it is usually the result of a not having closed the sale of a previous home and wanting to buy a new one. It can also be due to a situation where the home appraisal is much lower than the listing price or a home inspection revealed a serious issue that directly affects the price of the home. This can include any number of issue like: a cracked foundation, damaged roof, or electrical not being up to code.
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When the realtor puts in your offer to a seller, the seller has three choices to make at that point: accept the offer as is, make a counter Offer or reject it. When a counter offer takes place your agent amends the contract with the seller and then comes back to you. The process of going back and forth may take a few amendments until the offer is finally accepted. Knowing when to take the deal and when to walk away is the key here. This is where a realtor shines in helping you make the right decision.
Once your contract is fully executed and has been accepted by the seller, the next step is to start the mortgage approval process with your lender. If your loan is pre-approved then you have a big head start and your approval will happen much faster.
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Choosing the Right Mortgage Broker
When you are choosing a mortgage advisor you are really allowing the advisor to use his years of experience to match you up with the right terms and rate that fit your budget. The super power of a mortgage advisor is that he has access to many unique products that the big national banks simply do not. He will walk you through the loan application process and answer all of your questions so you know exactly what to expect.
How to Get Started With the Loan Application
In order to obtain a home loan you need to fill in what is called a Uniform Residential Loan Application. This will help the lender determine your eligibility for the loan and how much they can lend you. The primary advantage to getting the loan application pre-approved upfront is knowing how much you can afford for your mortgage and what price range you should be looking for in a home. Don’t feel intimated. Your licensed mortgage advisor will walk you through each step.
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How the Loan Process Works
The loan process is made up of twelve steps that start from the initial meeting with your mortgage advisor to the closing of your home purchase with your closing agent.
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What is Private Mortgage Insurance?
In most mortgage loan situations the lender expects the borrower to take out mortgage insurance if they are depositing less than 20% down payment. This insurance protects the lender in case you default on your mortgage. Mortgage Insurance enables the bank to offer you lower down payment options.
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