The Home Buying Process- Financing

Dated: January 16 2023

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The best advice we can give you about financing is for you to talk with a loan officer and begin the process BEFORE you become too invested in your home search. This is because this process can take several weeks and, in that time, you may find the home of your dreams, only to find out you don’t qualify, or someone else buys it whilst you are still awaiting loan approval.

Knowing the specifics of your loan will also:

·        Determine what condition homes need to be in. Fixer users may sound interesting to you, but your loan may not be applicable.

·        Determine if you will require sellers closing cost assistance.

·        Determine if you would qualify for homes with expensive condo fees, flood insurance or Property Owners Associating fees.

·        Being pre-approved puts you in a strong position when we start negotiating on a property because the seller and their agent know you are capable and committed to the purchase.

In our experience there are some things you absolutely must not do after your loan application because they may mean starting the process again.

·        Do not make major purchases. Adding any new debt to your credit card can impact your ability to purchase. Even a credit check can cause delaying problems.

·        Do not quit or change your job[s]. Your loan approval is based on your current job. Changing jobs can cancel your approval or delay your ability to purchase by months.

·        Do not change banks or move your money.

·        Do not pay bills or credit cards until you consult with your loan officer. They will advise you if it is necessary to pay off bills to qualify for your loan.

·         Down payment (can be 3.5% to 20% of purchase price )                                                                                      Some loans may not require a down payment such as a VA loan.   

·         Closing costs (approx. 4% of purchase price)

·         Minimum of 2 mortgage payments

·         Earnest money deposit (approx. $500 to $1000)

·         Optional property inspection (approx. $400)

      Don't hesitate to contact us with all you questions.

   

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Patti and Kevin Harris Real Estate

Straight forward, customized service for every client, whether buying or selling, no matter what your criteria and timescales. We have over 20 years experience helping to guide our clients through t....

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