What can you afford?
Prior to setting up an appointment to view new homes, your mortgage lender should take a glance at your paystubs, credit report, tax returns and bank statements to determine if you will qualify for a loan. If you are not already working with a lender, please ask your realtor to put you in touch with one of our experienced loan officers for a complimentary pre-approval analysis.
Pre-approval for a loan
When applying for a purchase loan, your loan officer will ask you for some personal information, fill out a residential mortgage loan application and verify your employment. Additional underwriting measures may include confirmation of your income, possessions, debts, and credit record. You will then obtain a letter affirming that your mortgage is approved for a specified amount up until a specific date. The document is for the home seller’s advantage to establish that you’re a qualified buyer. There is no responsibility on your part to continue with the same bank. You are free to continue shopping your loan until it is time to open escrow.
A great method to be proactive in search of your next dream home is to begin driving around homes situated in desired neighborhoods. Ask your qualified realtor to email you new and existing listings on the market. Inventory changes every day so be sure that you stay on top of what is out there. Time is of the essence. If you see a home that you like, contact your realtor to schedule a showing and write an offer. The faster your offer is submitted, the better chance your offer has of getting accepted.
Make an offer
Work with your realtor to write an offer that you feel comfortable with. As your realtor to go over sellers concession and/or credits, fixtures, closing costs and termite repairs when structuring your offer. Your realtor should also provide you with a property profile and comparable sales to help guide you in coming up with an offer amount.
Settle on a price
The seller will react in one of three ways: an agreement, a counter, or a refusal. If you can agree on a figure, you will then sign a contract and be asked to place down payment into escrow also known as a good faith deposit. Make sure the contract denotes that you can get this money back if you remove your offer.
Get an inspection
Ask your realtor to suggest a certified inspector or take a look at the American Society of Home Inspectors. Obtaining a home inspection is always strongly recommended in every transaction. You may require additional inspections such as termite, geological structural and/or environmental surveys during your inspection period.
Close the deal
When the inspections are finished, you will contact your lender to find out when they can close your transaction. Once you receive this information, consult with your realtor about releasing contingencies.