Let’s Explore the Process.
Once a contract is signed by the seller and buyer, it becomes binding. From that date, the clock starts ticking on completing various tasks within the agreed upon time frame. Your VILLAGE agent will continue to monitor these timelines to make sure you do not lose your contractual protections because of a missed deadline. During the transaction, checking on progress throughout the process is key. Working to provide your lender with necessary paperwork and ensuring all the information is correct will avoid last minute issues.
- Deliver the agreed-upon earnest money to the holder within the time frame specified in the contract.
- Make a formal application for the loan within 3 days of the contract binding agreement date.
- Hire an inspector to conduct an inspection of any and all systems, as well as any additional inspections that may be desired. Once all inspections are complete, you can decide to terminate, accept as-is, or ask for repairs.
- Identify and declare a company for homeowners insurance, provide verification of funds required to close, and direct the lender to order the appraisal and show proof of payment of such within 14 days of the binding agreement date.
- Continue to provide your lender with any requested information in a timely manner, and do not make any purchases that would jeopardize your loan approval.
- Perform final walk-through. I will accompany you on the final walk-through to verify that the home is in the same condition it was when you first viewed it, and to ensure all requested repairs have been completed.
Formal Loan Application
Once your offer has been accepted, you will have 3 days to make a formal loan application. Your lender will need the information listed below to begin the loan process and to complete your application file. Make sure you deliver everything in a timely manner.
Once all of this information is collected and verified, your file will be sent to underwriting. Once the appraisal is complete, a final analysis of all information will be conducted by the lending company, and you will then receive a formal loan approval declaration, usually within one week of closing.
Be Prepared to Present:
- Two-year employment history (if applicable) that includes names and addresses of all employers, a copy of the most recent pay stub, and W-2 forms for the past two years. If you are paid based on commission, you will need federal returns from the last two years; if self-employed, two years of federal tax returns and profit and loss statements for the last year.
- Banks names and addresses, account numbers, current balances, and last two or three months’ account statements for checking, savings, and investment accounts.
- Monthly payments and balances for debts and liabilities, mortgages, personal and auto loans, credit cards, and student loans.
- Verification of amount, and terms of child support and/or alimony payments and/or income.
- Three-year address history that includes names, addresses, and phone numbers of landlords (if applicable).
- At the application appointment, you should be prepared to provide a personal check for property appraisal and credit report, if necessary.
- I can provide a list of mortgage companies for you to research. Understanding your mortgage options now gives you an advantage as you negotiate your home purchase.
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