Whether it’s a wrap around porch, a white picket fence, or a condo at the beach, everyone has their own idea of what “home” looks like.
For the majority of people, buying a home is the largest purchase they will make in their lifetime and most do not have the cash on hand to make such a large purchase. That is where your bank comes in handy.
Before you start the Internet search and overwhelm yourself with options, let us explain the home loan process in a way that is easy to understand.
A home loan, or in bank terms, a mortgage, is the financing option available to purchase a home. The terms can be overwhelming, the amount of research exhausting, but the most simple question is this: how much money do you have to put down on a purchase of the home?
No matter the answer - if it's no money, some money, or a pile of money, there is a home loan option for you.
After determining your down payment amount, you will need to talk with a lender about the documents they will need from you to get you pre-approved. They will ask for an application, income information, and want to verify how well you have made your payments to others in the past through your credit bureau report.
A pre-approval letter is something you give to your real estate agent so they know what your budget is and it helps the sellers be confident you can afford the agreed price.
When you find the home you want to make an offer on, contact your lender and let them know that you have found the one!
They will get you an updated letter with the new home address.
Now the “hurry up and wait” part begins. After the seller of the home accepts your offer to buy, the bank will order an appraisal to determine the value of the home and get with a title company to make sure there are no outstanding debts owed against the home. From the time an offer is accepted to the day you get the keys to your house is normally 30-45 days.
The bank may contact you for different pieces of information as they go through the process to prepare for closing, which is the day you will sign all of your loan documents and get your brand new house keys. Then, you’ll just need to find someone to help you move all of that heavy furniture into your new house!