1) A reputable lender can assist you in obtaining a pre-approval in the amount that you can afford and the type of loan program that works best for you.
2) You lender will set up an appointment with you to arrange your pre-approval. You will need to bring the following documentation:
- Recent pay stubs
- W-2 forms (last 2 years)
- 2 years of tax returns
- Recent bank statements, 401K or any other investment account statements
- Driver’s license
3) Once your lender has received your documentation, a pre-approval letter may be issued. A realtor needs to have this letter before you can write an offer on a house
4) Contact a reputable realtor, Larry Kleinheksel with Coldwell Banker Woodland Schmidt, would love to assist you in your home buying process.
5) The realtor is paid by the seller, not the buyer, so you are not responsible for the fees related to the sale of the home
6) Your realtor, Larry Kleinheksel, can make shopping for a home a one-stop shopping experience. Provide your realtor with a list of specifications, so they may search all of the listings and narrow down the options for you
7) Your realtor will then schedule appointments to view these homes. Some homes will not qualify for your loan program; however, your realtor will help you determine this in advance to save time and disappointment
8) It is best to view several homes so that you are able to make comparisons and ensure that you are getting a good value
9) After you narrow your search and select a home, your realtor will help you write an offer. Your pre-approval letter and earnest money deposit are part of your offer. Earnest money is a good faith-deposit, which averages $500 and signals to the seller that you are serious about purchasing the property. The deposit is refunded if your offer is not accepted.
10) Once you have an accepted offer, a home inspection is highly recommended. You many use any licensed inspector (Your realtor will be able to recommend someone)
11) Contact your lender with the results of the inspection. Your lender will wait until they receive the results of any inspection before requesting an appraisal of the home
12) The lender’s appraiser will determine the value of the property and how much can be financed. Your lender will update any additional paperwork. Once the appraisal is received by your lender, your file can be submitted to underwriting
13) Some loans have more than one underwriter who reviews your file, so it can take a few days to get your final approval
14) Once your final approval is received, the closing can be scheduled
15) The seller’s realtor will determine the title company responsible for the closing of the loan
16) The title company performs a review of the property to ensure that there are no additional liens, unpaid taxes or assessments on the property prior to your purchase. The fees for the title work and other expenses are included in your closing costs
17) In addition to title insurance, you will need to have a one (1) year paid homeowner’s insurance policy at closing, which is specific to your home and personal belongings