Before you can get the keys (and title) to your new home, you’ll have to go through several steps. From planning to closing, here is what you’ll encounter during a home purchase.
Consult a Professional
The first step in purchasing a home is consulting a mortgage professional like Drennen Home Loans, your trusted mortgage company Las Vegas. During the initial consultation, you’ll review your finances and home ownership plans (including how long you plan to stay). This gives you an idea of what your monthly payments might be and what size down payment you can comfortably make.
Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage makes it easier to buy a home. It can also help you negotiate the price. To start, you’ll have to choose a lender. You can shop around or ask friends and family if they can recommend one. This is also a good time to get all standard mortgage application materials in order (including W2 forms, bank statements, account numbers, and pay stubs) so that you’re ready to submit an application when you find a loan.
Consider Your Financing Options
Depending on your personal situation, you might be eligible for special loans like VA loans, which are only available to military veterans who want to buy a home. If you have a poor credit score or low income, you may be eligible for government assistance programs that offer loans to people who would otherwise be turned down for a conventional mortgage.
Once you’ve found a loan to apply for and gathered the required documents, it’s time to start the paperwork. Your mortgage professional will send your information to a loan processor, who in turn reviews your application and schedules a property appraisal.
When your paperwork is approved, the next step is underwriting. In this stage, a prospective lender evaluates your level of risk, which includes your likelihood of a default. Underwriting is essential for a loan; without it, your loan will not be funded, which could prevent you from purchasing a home.
After securing a loan, the pre-closing phase begins. At this point, you will need to get homeowner’s insurance and make it effective the day you move in. You’ll also need proof of insurance to get a check from the bank and make a down payment. Any outstanding financial or paperwork issues must be taken care of in the pre-closing stage too.
The closing phase is the final step in getting a new home. In closing, you’ll sign legal documents, make a down payment, and pay all closing fees. The mortgage note, mortgage, and closing disclosure are some documents you’ll see at this time. Closing procedures are determined by each state, which means that requirements vary depending on your location. When the closing ends, the home is yours!