Nextdoor Realty Group, Inc
Financing to Closing: 9 Easy Steps
These are the basic steps, but every sale is different and unique. For instance, rural properties may require septic approval and well testing. If you are uncertain about the condition of the home, obtaining a Home Inspection may alleviate some of your concerns. I can help you with all your questions.
1. Secure a lender.
2. With advice from your lender, choose the mortgage type best suitable to your needs. Discuss your interest rate options and "lock-in" the best interest rate.
3. Make a loan application. Take two months' of bank checking and savings statements, employer pay stubs, monthly credit card statements, and other investment reports. If self-employed, you may need two years of income tax statements. Check with your lender for any additional requirements. Be prepared to pay the additional fees for the loan application and the appraisal of the property.
4. Your lender can give you a booklet with specific mortgage information, a good faith estimate of all closing and related costs, and an estimate of your loan costs. This is provided in the form of an initial "Truth-in-Lending" Disclosure Statement (Reg Z).
5. Obtain the loan approval.
6. Attend the settlement, and close the sale.
7. Lender or settlement officer will disburse all funds including payment to seller.
8. All legal documents will be sent and recorded at the County Recorder's Office.
9. Move into your new house and enjoy!
1) The Mortgage Application: The most important aspect of your home purchase is the mortgage you obtain. The amount of this mortgage loan will be decided by the price of the home and your down payment.
2) The Down Payment Deposit: A down payment is the money you pay up front toward the house. The more cash you pay as a down payment, the less money you will pay each month on the mortgage, and the lower the interest costs will be over the life of the mortgage.
3) Settlements & Closing Costs: Closing Costs are the costs of borrowing money, establish the loan, and preparing the necessary documents to finalize the sale. These costs may be significant and are easily overlooked by a first-time buyer.
When you know the amount of your down payment and estimate of the closing costs, and the mortgage amount for which you qualify for, you will know how much home you can afford to buy.