Five Step Home Purchase Process

Ideally, before you ever even start to look at homes, understanding your options for obtaining a loan are critical.

This starts with the loan approval process. When you go out to shop for a home, the seller will want to know that you are qualified for the loan ahead of time. So where do you start? The Family Mortgage Team @ LeaderOne Financial has a methodical process that insures that you will be educated and comfortable. First we get an application from you. This can be done online or over the phone. This requires your personal information such as employment and income history, money you have saved up and what you owe to various creditors.

Once we receive this information, we will pull your credit and upload your electronic file to one of the government agencies Fannie Mae, Freddie Mac, FHA or VA for an automated approval. We treat this as a pre-qualification instead of an approval. This is a preliminary assessment of everything that was submitted electronically on your loan application, along with your credit. At this point we like to take it a step further than most of our competitors.

We offer a Certified Homebuyer designation. By taking the extra step of submitting all of your income and bank asset information, we can validate, up front, that your file is a “rock solid” approval. The worst thing that can happen is that someone tells you that you are approved, you find your dream house, go through the whole loan process only to find out there is a problem near the end. The loan officer didn’t ask good enough questions upfront and found out that you were paid as a contract employee and paid 1099 income and therefore you are technically self employed. Because you don’t have a 2 year history, you are not eligible for the loan. Getting Certified, insures that you won’t find yourself in this awkward situation assuming that none of your information changes.

While you are getting your documentation together to become a “Certified Homebuyer”, we start working on figuring out the numbers for you. We talk with you about pertinent details such as payments that you are comfortable with, how much money you have to work with for a down payment, what type of property you are thinking of and overall what is important to you about this. What makes you nervous?

home mortgage loan calculationsFrom there we carefully put together some estimates and loan comparisons to show you various options. Some companies just try to fit you in a loan that is convenient for them…they don’t even bother to show you options. There are always options and depending on your goals, one loan typically will become the clear winner after some discussion. Our goal is to get you to that place of confidence so when you go to look for a home, you know what price range you can look in and what the payment will be therefore you can make your offer without hesitation. Once we finalize the numbers for you, we like to get together and walk you through everything, if possible, in person. If not, we have technology available that allows us to present it all to you via audio clip. Then after you have had a chance to listen, we spend some time together on the phone to answer all your questions.

home loan searchNow the fun starts, going to find a home. You and your agent will find a home eventually, make an offer and ultimately, you will sign a contract. That starts the formal process. You will have a certain amount of time to do a home inspection and get your loan formally approved. We have already “Certified” you but the lender has to complete a second review of the file to be sure that your circumstances haven’t changed, an appraisal of the property has to be completed and reviewed.

This starts with all of the application paperwork that must be signed and the items that you will need to gather for us…things like your paystubs, W-2’s, bank statements etc…We most likely have a lot of this but it most likely will have to be updated. We will also be ordering the appraisal and title at this time and encouraging you to shop for your homeowners insurance.

Once we receive all of your signed paperwork and updated documents, we will package all this up and send it to our underwriter for review. home loan approvalThis review is just a double check that all of the information that you supplied in the loan application is supported by the proper documentation. I refer to it as a validation process.

Since we are intimately familiar with the guidelines ourselves, we can offer you a “Certified Home buyer Designation” which essentially is a pre-underwrite of your credit qualifications including income, assets and credit history. When we submit your file at this point it is more about dotting I’s and crossing T’s to make sure all of the proper documentation is in the file. The underwriter will also review your appraisal when we receive it and review the title report to make sure that there are no liens against the house that would hinder you from being able to close on the property.

Once the underwriter reviews the file, they issue what is called a conditional approval. Oftentimes there are a couple things that we may have missed or that you are waiting on that still need to be provided to issue the final approval.

Pre-Closing: The Family Mortgage Group at Leader One offers a 10 day checkup that is unique in the industry. After underwriting has issued the conditional approval, we prepare a Closing Preparation letter for you where we confirm several items to insure we are on the same page. These items include loan amount, interest rate, how much approximately money you will need the day of closing, how you will hold title, among other things. This way we have time to correct any errors that we collectively might discover.

Closing Day: This is the day you have been working towards. Since we have done all the heavy lifting well ahead of this day, this should be as simple as walking in and signing the documents and giving the attorney your check (if applicable). The closing attorney will walk you through all of the standard documents that you will be asked to sign but since we will have already gone over the final numbers in detail ahead of time, it should be sign and go!

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