Steps to Purchasing Real Estate

 1.  Get pre-approved for a mortgage.

This first step can be done over the phone, face to face OR online here on my site via a data secure mortgage application.  During this conversation or online submission, you will be asked questions surrounding your employment, credit (we will need your social security number so that we can pull credit), your employment history and salary, and any assets you may have.  I will then be able to give you a pre-approval letter to be presented with your offer (see below).

2.  Find property and get signed acceptance of offer.

A deposit is given to selling real estate agent to be applied to the down payment.  Typically most people give between $500 and $1000 at offer.  The pre-approval letter is presented with the offer.  If your offer is accepted please contact me to let me know.  Different properties may require different mortgage programs.

3.  Have a home inspection done within 5 business days

This usually costs between $250 and $450, depending on the property type you are buying.  This step is optional, but highly recommended.  This step does not determine the value of the property. Once you have completed a successful home inspection and the transaction is proceeding forward, I will then order your appraisal with an independent contractor to determine the value of the property.  Also at that point we can talk about locking your interest rate in for the needed period required to protect you until your closing day.

4.  The mortgage application

Once the inspection is done, it’s time to start the mortgage / paperwork process.  To do this we will need you to fax or mai all (or most) of the followingl: 1) Two years of W2 statements 2) Two months worth of bank statements 3) Four weeks worth of consecutive pay stubs 4) Your most recent quarterly statement from any additional assets you may have (401K, mutual funds, IRA, stocks/bonds, etc.) and 5) A photocopy of your driver’s license and proof of your social security number.  I will need a credit card deposit (or check) to put your file in process.  This amount will be credited back at closing against your final closing costs!  Disclosures will then be mailed to you for signatures, along with a list of documentation to be returned ASAP to your processor.  Any missing items can be later forwarded by fax or email.

5.  The Purchase and Sales contract is signed by all buyers and sellers.

6.  Mortgage Commitment Date

This is the very important day by which the mortgage must be approved on the property you are buying.  A commitment letter with any outstanding conditions will be forwarded to you, and a separate letter will be forwarded to the brokers with your permission acknowledging your loan approval.  A trail of the funds used for the down payment will be documented by your Loan Analyst.  Prior to this date your credit and employment are verified, and the property being purchased is appraised.

7.  The Closing Date

The balance of money is given to the closing agent.  Any down-payment, closing costs, escrow balances for taxes, insurance, and pre-paid interest charges are given in the form of a certified bank check.  Final closing documents signed, and keys are handed over.

Important Notes:

* Keep copies of all checks.

* Save your pay-stubs all pages of your financial statement until you close on your new home

* Obtain a one year pre-paid insurance binder from your insurance agent, bring on closing day (not needed for condominiums)

* Once the mortgage process is started, don’t open up any new lines of credit (new credit card,  car payment, etc.) without speaking to me first as it could affect your loan approval and rate!!