Buying a home can be a daunting task. Between making sure your new home will meet all your needs and getting the best value, adding the mortgage process into the mix can be overwhelming. Thankfully our agents here at The Real Estate Store can help guide you through it. Here is a step-step mortgage road map to help give you peace of mind in your buying experience with information provided courtesy of RMS Mortgage!
Step 1. Pre-Approval
Once you meet with an agent, it’s a good idea to start the home buying process by finding out your mortgage pre-approval amount. Not only will this give you information on what homes would be in your price ranges, but it also means that your lender can check your credit and verify your documentation for approval. This will save you time in the long run. Your Real Estate Agent can help recommend a place to start!
Step 2. Submit Mortgage Application
This next step happens after you have found the house you are ready to buy! Once you are under contract and scheduling a home inspection, it’s time to submit your official application. You will need to provide updated financial documents and the Purchase & Sales Agreement of your potential home.
Step 3. Processing & Underwriting
The mortgage company will organize your updated financial information and order the appraisal. Next they will begin the underwriting process. This can take as little as four days and as long as four weeks, depending on if there are any conditions that need to be met, but on average most people will receive an answer about their application within one to two weeks.
Step 4. Conditional Approval
In some instances, during the underwriting process you may have some conditions that must be met before approval. These may be additional documentation needed, or explanations to questions asked by the underwriter. Make sure to get that information to the underwriter as soon as possible so as not to delay your closing.
Step 5. Home!
Once the appraisal report is completed and reviewed by underwriting, and you’ve obtained home owners insurance, you just need to bring a certified check for tour down payment/closing costs and sign your closing documents.
During your journey, there are some pitfalls that can hinder your progress through the mortgage application. Watch out for:
- Late payments on debt, bills, and household services/utilities
- Inconsistent credit or debit card usage (such as other large purchases or deposits)
- Changing employment status
- Applying for new credit, car loan, store card, etc
- Switching banks
- Co-signing loans
Don’t make any big purchases or changes while waiting to close; when in doubt check with your mortgage broker first. It’s also a good idea to use a credit watch program to monitor your credit during this process and stop unusual activity!
Planning on buying a home in the near future? Reach out to to find out more!