8Steps to Homeownership

BY ROSEANN LUND

Buying a home is an exciting time in life, with important decisions to make and vital paperwork to fill out. Don’t worry — you are not alone. With the assistance of a mortgage loan officer, it should be an efficient, pleasant and ultimately rewarding experience. Many important things should be considered throughout the process, especially if you're a first-time homebuyer. Finding a top mortgage lender with locally approved, financed and serviced home loans will provide you with expert advice and save time. The benefits of a local mortgage is that your mortgage lender can answer servicing questions even after the loan closes. These eight simple steps from Gate City Bank will help keep you on track and successfully open the door to your dream house.

Step 1: Pre-Approval

A home purchase might be your largest and most important financial transaction so it’s important to keep an eye on the details. Get the process started by getting pre-approved. Your mortgage loan officer will provide you with the estimated monthly mortgage payment amount for which you have been pre-approved. He or she will explain loan programs and requirements, financing options and details on how your loan will be serviced.

Now, go house hunting.

Step 2: Find a Home

Found your dream home? Once you’ve made an offer and it’s accepted, share the good news with your local mortgage loan officer. He or she will need a copy of your signed purchase agreement.

Step 3: Application

Now, let’s get started with the paperwork. Your mortgage loan officer will discuss the following:

• Loan estimate of closing costs. This details the loan amount, charges and fees, annual percentage rate and will also state if your lender will be servicing your loan.

• Locking in interest rate.

• Other forms associated with the specific loan program you have selected.

Step 4: Homeowner’s Insurance

Now that you’re well on the way to purchasing your home, you’ll need homeowner’s insurance. Your mortgage loan officer will provide you with the information necessary for your agent/agency.

Step 5: Home Appraisal

Relax. Your mortgage loan officer will make arrangements for the appraisal, using a third-party company that will inspect the property and compare it to similar properties sold in the area to determine the home’s current appraised value. When it’s done, your mortgage loan officer will provide you with a copy of the appraisal and discuss any items pertaining to the approval process for your loan.

Step 6: Title Insurance

Your mortgage loan officer will obtain a title insurance commitment, which provides the bank with the legal details of the property including any liens against the property.

Step 7: Loan Approval

You’re almost done. During the final loan approval process, a mortgage loan underwriter will review your loan package, appraisal, total debt ratio, credit history, employment history and other required information to make sure it conforms to your chosen loan program.

Step 8: Closing

You will be provided with a closing disclosure, which will contain information about your loan, loan fees and other costs associated with obtaining your loan. Your mortgage loan officer will have the total dollar amount you will need to provide to the title company at closing. The bank will prepare the closing documents for you to sign, and will work with you to ensure you close on your scheduled closing date. Now, sign on the dotted line.

That’s it. Congratulations! You’re a homeowner! This eight-step process to home ownership will create a better way of life. Take your first step today. PB

Roseann Lund Senior Vice President Residential Mortgage Lending and Payment Services Manager Gate City Bank Grand Forks, N.D. roseannlund@gatecitybank.com