Purchase
Starting your mortgage application here will give you a better sense of the mortgage programs and loan amounts you may qualify for.
I’ll also need an overview of your financial situation to help determine your creditworthiness.
A mortgage loan application requires me to gather your financial information so I can evaluate the amount you may qualify for.
If you’d prefer to complete your loan application in person, I’m happy to schedule an in-person meeting with you.
I will first check your income and request a copy of your credit report. If your application is accepted, I’ll issue a Pre-Qualification Letter, which indicates that you meet the minimum FICO credit criteria and the lending requirements for approval.
This Pre-Qualification Letter shows that you fulfill the necessary credit requirements and helps narrow down your home search. As soon as you receive it, please give a copy to your Realtor®. This not only lets them know how much you can afford but also persuades sellers to consider your offer more seriously.
What are the six pieces of information I need to process your comprehensive loan application?
- Name
- Income
- Social Security Number (to obtain a credit report)
- Property address
- An estimate of the property value
- The amount of the mortgage loan
If you have any questions, please ask me for assistance in completing your mortgage loan application. I’m always here to help and will gladly answer any questions you may have. I’ll also review your application to ensure all information is accurate and valid. Once reviewed, I’ll process it for approval.
I’m required by law to provide you with a Loan Estimate for your protection. Within three business days after you submit a complete mortgage loan application, I’ll give you a Loan Estimate. This document includes key details about your loan, including the estimated interest rate, monthly payment amount, and total closing costs.
I encourage you to check out the CFPB’s Loan Estimate Explainer to learn more about the Loan Estimate form and important terminology.
Keep in mind that the Loan Estimate is exactly that—an estimate. When we reach closing, you’ll receive a Closing Disclosure, which details the exact charges you’ll be responsible for.
As a homebuyer, you’re not required to use a real estate agent to complete your transaction. However, I always recommend doing your research and engaging a trustworthy REALTOR® who will act in your best interests. A buyer’s agent has a fiduciary responsibility to represent you throughout the buying process.
A REALTOR® can also share information about homes and neighborhoods that might not be readily available online. Best of all, working with a buyer’s agent is typically free for you!
If you need help finding a reputable REALTOR®, I’m more than happy to provide a list of qualified agents.
Setting up a Multiple Listings Service (MLS) search with your Realtor® is the simplest way to discover your new property.
• It can be set up to run automatically and send emails up to 5 times each day.
• Allows you to communicate directly with your agent about each property.
• Within the MLS, you can use search filters to narrow down results by locations, zip codes, cities, subdivisions, streets, school districts, and more.
• Provides all the information you need to buy a house in one convenient location.
One of the biggest advantages of using MLS to find a property is that it always includes the most recent listings and market changes.
Keep in mind that if you search on Zillow or Redfin, the property you’re looking at might be outdated and no longer available.
Now that you’ve been to a few open houses and found properties you like, you’re ready to make an offer.
Negotiating and getting an offer approved may take some time.
Your broker will draft a purchase contract with the terms of the offer once you’ve negotiated a price and the seller approves it. If the sellers accept your offer, they will sign and return the contract.
If the seller agrees to include any fixtures or appliances with the sale, ensure they are mentioned in the purchase contract. Don’t assume anything will be left behind if it isn’t specified in the contract.
Appraisal Contingency
When your offer is approved, your lender will arrange an appraisal from a third-party appraisal business, and you must pay the appraisal fee upfront. The appraisal ensures that you are paying a fair price for the home.
The contract includes an appraisal contingency to protect you if the home’s appraised value is less than the agreed-upon purchase price. In this case, you have a certain number of days to cancel the contract, complete the purchase, or negotiate with the seller to lower the price to the appraised value.
Financing Contingency
This allows you to apply for and secure mortgage financing to purchase the property. It safeguards you if you are unable to secure financing, allowing you to cancel the contract and receive your earnest money back. You’ll have until a specific deadline to secure mortgage funding for your purchase. You also have until this date to terminate or request an extension of the contract.
House Sale Contingency
This will not apply to you if you are purchasing your first house.
If you’re purchasing your first house, this will not apply to you. If you’re selling your current house and buying a new one, this is significant because it gives you a set amount of time to sell and pay off your old mortgage before you can get a new one.
This can be frustrating for sellers since they must reject other offers while waiting for the contingency to be resolved. You are covered by this contingency if you are unable to sell your house for at least the asking price, and you have until a specific deadline to withdraw from the contract without legal penalties.
Inspection Contingency
Your agent will help you schedule a home inspection within a few days of your offer being approved.
The inspection contingency protects you by giving you a set amount of time after the inspection to renegotiate or withdraw your offer without incurring legal penalties if there are major damages to the house.
Before closing, there will be a final walk-through to check that the seller repaired any defects discovered during the inspection, if they agreed to do so.
Once the seller accepts your offer, it’s time to secure your financing.
During closing, you’ll sign the final paperwork and pay any charges needed to legally transfer ownership of the property to you. The closing agent will then review and authorize your loan.
Congratulations—you’re now a homeowner!
