Home Buying & Financing:
Take the Steps. Reap BIG Change
Have you set yourself a goal of buying a home in the Chicagoland area?
You've been successful and you're now in a much more advantageous position to buy.
But what comes next?
Because of your decision to work pro-actively with an Originator prior to entering the home buying/financing process, you're ahead of many mortgage applicants. You're better prepared and positioned to buy as you move forward. You're organized and you've laid out your purchase objectives. They're clear to you and your Originator.
Your Originator is already well-versed on your credit standing, income(s), debt(s), savings, credit and more. The initial act of the home buying process ... Pre-Qualification ... should be a breeze for you because of the preliminary actions you've taken.
This Pre-Qualification portion of the home buying process is a great time for you to search and find the Buyer's Agent that will assist you during your home purchase. Upon meeting, that agent will ask you a variety of questions.
Especially if seeking to buy a home in a highly-competitive housing market, one of the first things your agent will want to know is ...
Are you working with a Mortgage Originator? Have you been Pre-Approved?
Once again, this next portion of your home buying process should flow more smoothly for you because you've been working with a Mortgage Originator during the time leading up to Pre-Approval. Much of the needed documentation required for Pre-Approval may be in their possession already.
What type of information and documentation will your Originator need to complete your Pre-Approval?
Your Originator will need info and documentation related to your:
- Employment (Name, Address, Tel. # of Employer(s)
- Income (W-2, Pay Stubs, Tax Returns, etc.)
- Bank accounts (Investment, Savings, etc.)
- If Renting: Name, Address, Tel. # of Landlord, plus proof of 12 months of paid-as-agreed rent (Signed Statement from Landlord may be needed)
* Click HERE for my checklist of documentation/info requested during Pre-Approval
After this important preliminary step is successfully completed, you can view homes with your Buyer's Agent. With a Pre-Approval in hand, you can make an offer on your dream home. Sellers will know that you're serious about buying and have the means and financing to do so.
If your offer is accepted, what then?
The following is a step-by-step guide that will lead you through the remainder of the home loan process:
- Contract/Agreement of Sale: The Home Inspection is ordered, then completed. Requests for repairs/or credits are negotiated at this time.
- Application Process: A full Application is taken (either in-person or electronically) and completed. Loan Terms are finalized.
- Appraisal/Report Ordered: Paid for by the Buyer, the Appraisal is ordered. The Title Report is also ordered.
- Homeowner's Insurance: The Buyer/Borrower should start shopping for their home insurance policy.
- Processing: Mortgage Processor completes and submits all updated info, verifications, etc.
- Appraisal Report Received: Appraisal is reviewed by Lender. Buyer is emailed a copy within 3 days of its receipt.
- Underwriting: Originator/Mortgage Processor submits the completed file to Underwriting. When/if approved, an Approval/ Conditional Commitment Letter is sent to the Buyer (and Attorney, if applicable) for review.
- Commitment: Buyer is updated on their file and any outstanding items needed by Underwriting. Outstanding items/conditions are submitted.
- Final Clearance: Upon all items being submitted, final clearance is provided.
- Clear-to-Close: Buyer is notified that they have received a "clear-to-close" via the Underwriting process.
- Closing Disclosure is sent.
- Closing Date is scheduled/coordinated between parties.
- Loan Documents are drawn and delivered.
- Final Closing Disclosure: Prepared by Escrow - Closing Department. Discloses all costs and expenditures, including the Buyer's "Cash-to-Close" for Closing.
- Final Walk-Thru is performed.
- Closing Day - Signing of Documents: Loan documents are signed. Funds are provided for Closing. All documents are reviewed and the transaction is officially closed.
That makes it imperative that good communication be practiced by all parties (buyer and professional) throughout each step. Every communication must be performed in a timely manner. Each conducted thoroughly and clearly.
When this is done, the process will be smooth, successful, and enjoyable. Exactly what home buying should be and the BIG changes you wished for ...
* Hoping to Buy or Refinance a home in the Chicagoland area? Contact Me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI License 216987
American Portfolio Mortgage Corp.
Cell or Text: 708.921.6331
Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
Referrals are Greatly Appreciated and Welcomed!