Pre-qualifying for your mortgage should be one of the first steps you take on the road to purchasing a new home. Here’s a review of the process:
Purchasing a New Home – Step 1:
- Determine the price range of homes in your area. Get to know the cost of the “fixer uppers” as well as the “dream” homes. The purchase price will give us the starting point we need to determine if you can qualify for a mortgage.
- Determine how much money you have for a down payment. The more money you can put down, the easier it will be to get a good mortgage.
- Gather up your income and asset documentation. To get a better idea of what you will need to provide, visit our Mortgage Paperwork Requirements.
- Call us so we can crunch the numbers for you.
Step 2:
- After we review your documents, we will determine if you qualify for a mortgage. If so, we will run your credit report and review your credit history. We will not run your credit if you can’t qualify.
- If your credit qualifies, we will prepare a Mortgage Loan Analysis Worksheet to show you different scenarios based upon purchase price, down payment, loan program and interest rate. This worksheet will show you the monthly housing costs including mortgage payment, property taxes and homeowners insurance. Our clients usually find this to be the most helpful tool in making their decision.
Step 3:
- If owning a home fits within your budget, you can start shopping!
- Once you find a home, we will provide a loan approval and strong cover letter to your Realtor that will be presented with your offer. We usually communicate directly with the listing agent to make sure they know you are well qualified. We will help position you in a way that will get your offer accepted.
- Once you are in escrow, we will follow the market carefully and lock your interest rate at the lowest possible point.
- Finally, we will work closely with your Realtor and the escrow company to make sure that nothing goes wrong or delays your closing.
