Home Buyer Steps Continued
- Provide your Lender, Broker, Banker with your Down Payment Assistance Package. Let them coordinate your assistance with your loan package.
- Provide your Lender, Broker, Banker and the Real Estate Agent with the contact information for your selected title company, appraiser, insurance agent and if needed home inspection company
- Have your Lender, Broker, Banker put together “back up” plans in case you need a different loan program to close on the house of your dreams.
- Based on your Pre-Approval, make a list of the items you can’t live without in your new home, things you’d like to have and things you can’t live with in your home. Include colors, flooring, style of home etc.
- Before deciding how to start, make sure you have or can have at least $1000.00 to spend during the loan process. This covers your contract deposit, appraisal and any other up front out of pocket expenses you may be required to pay. You may not need it, but if you do, you have it.
- Decide whether or not you are going to use a Realtor®. If you are, give them your wish list and a copy of your Pre-Approval. If you’re going “By Owner”, start shopping. With your Pre-Approval in hand, NEVER let a Real Estate Agent convince you to “go with my preferred” lender/broker/banker. This can create delays and problems as you will now be starting the loan process over.
- STICK WITH your plan, your loan Pre-Approval amount and always keep in mind the limitation that may be set by your assistance program on the maximum cost of your home. Remember, your loan Pre-Approval is based upon the MAXIMUM dollar amount you are approved for by an underwriter. Don’t let your Realtor® “upsale” you on spending more than you are approved for or you may find yourself being declined and wasting everyone’s time. Change this at your own risk!
- Before contracting, insure your Lender, Broker, Bank is involved. In conference with your Realtor®, determine what closing assistance you need from the seller on your contract. Insure the purchase price, property taxes, Association Fees and insurance FIT your Pre-Approval and assistance program. Then and only then should you sign.
- Once you have contracted on a home, you need to look at locking your interest rate. Follow the market and make a decision to lock now or let it ride. If the rate you were approved under is available, at this point, you should give heavy consideration to locking.
- GET YOUR MORTGAGE COMMITMENT TO LEND within one week after contracting. Push hard for this, and make sure you read it and review with your Lender/Broker/Banker All remaining conditions. Review them on a regular basis.
- Work closely with your Lender, Broker, Banker to get any remaining documents needed to update your loan and down payment package. You are now only a few weeks from closing and any delays in providing documents may create closing delays.
Buyer Beware – Remember, a Realtor® is only a tool in your arsenal to assist you in finding a quality home. You don’t need a Realtor® to buy a home, however, you cannot buy a home without a loan unless you are paying cash.