TH E BE S TSTTI M E TOE BU Y T HE BE TIM
TO BUY IS NOW
Table of Contents
01
The Best Time to Buy Is Now
Home Prices on the Rise Interest Rates Slowly Increasing Investing in Property Successful Homeownership
02
The Home Buying Process
Getting Organized Pre-Approval Finding a Home Making an Offer / Inspection Loan Approval and Processing Closing Day and Moving In
03
Meet the Team
THE BEST TIME TO BUY IS NOW Home Prices on the Rise • Throughout 2021, home prices rapidly rose once the economy started to recover. They are still going up and now is the best time to buy before it’s out of reach. • Home prices are still going up and will for the foreseeable future - making now the best time to buy before it's out of reach
Interest Rates Slowly Increasing • Rates were at historic lows recently and have started to slowly rise over the past few months. Interest rates change daily, so it's important to make sure you get the lowest rate while you can. • If you wait too long, the increased interest rate you receive could put a monthly mortgage payment over your budget.
Successful Homeownership • Becoming a successful homeowner is simple when your lender and agents are working in your best interest! Since both home prices and interest rates are on the rise, getting started now is crucial. • Setting you up with the right plan and mortgage program to secure your dream home is our goal. In some areas, renting is becoming more expensive than buying — making now the perfect time to buy.
Investing in Property • When renting a place to live, you’ll never see a return on the payments you make each month. Paying towards a mortgage each month builds equity in your home that you can use later if needed. • Since property values are predicted to continue rising, now is an opportune time to buy and get a great return!
THE HOMEBUYING PROCESS Deciding to Buy • When you first decide to buy a home, making sure you have the proper representation will help save you time and money. • The journey can take up to a month and discussing the home buying process with your real estate agent will help familiarize you with everything before you talk to your lender. • Getting organized and having the information you need ready will help you start the home buying process smoothly.
STEP 1
STEP 2
STEP 3
Initial meet and greet with your loan officer
Loan application Income/Assets/ Credit
Loan application submitted for automated UW approval
STEP 6
STEP 7
Submit Offers/ Offer Accepted
Earnest money submitted and recorded
STEP 11
STEP 12
Clear all outstanding conditions
Loan is CTC! Schedule Closing
STEP 4
STEP 5
initial Loan PreApproval is issued
Start looking for homes with your REALTOR®
STEP 8
STEP 9
STEP 10
Inspection (for buyer) and Appraisal (for lender) ordered/ received
Lender submits full file (with appraisal) to underwriting
Conditional Loan Approval
STEP 14
STEP 15
Title agent emails required documents to lender for funding
Lender funds your loan. CONGRATS! YOU'RE A HOMEOWNER!
STEP 13
Title agent prepares closing docs / Buyer and seller sign accordingly
Pre-Approval • Before you start shopping for homes, getting preapproved with your lender will allow you to fully understand how much they are willing to lend you and on what terms. • There are many ways to get pre-approved, and most lenders will let you provide the information they need online. • You can always visit in person if you’re more comfortable, but you’ll need these documents to complete the pre-approval:
1
Recent Pay Stubs
3
Two Years of Tax Returns (1040's)
2
Two Years of W2's, 1099's, or K1's
4
Two Months of Bank Statements
• Once you provide this information to your lender, you’ll receive a letter of pre-approval and can start shopping for homes within your budget. • Work with your real estate agent to find the home with everything you desire, they will use their tools and resources to help make your search quick and easy.
MORTGAGE DOCUMENT CHECKLIST Last 30 Days Pay stubs Last 2 years W2's Last 2 years Federal Tax Returns (1040's) Most current 2 months bank statements (all pages)
Source and explain all large depostis in excess of 30% of monthly income
Fully Executed Gift Letter (if Gift is being used)
Most recent quarterly retirement statement (if applicable)
Self Employed Borrower
Last 2 years Corporate Tax Returns (1120s, 1120 or 1065)
Last 2 years K1's
Last 2 years Federal Tax Returns (1040's)
For A Purchase Bring
Fully Executed Purchase Contract signed by all parties
All Riders and Disclosures signed by all parties
For A Refinance Bring
Recent Mortgage Statement
Home Owner's Insurance Dec Page
Condo Association Statement (if applicable)
THE DO'S OF THE MORTGAGE PROCESS DO
DO
DO
DO
DO
DO
DO
DO
Get pre-approved with Neighborhood Loans
Work with home buying experts such as Real Estate agents and Loan Offeicers
Understand your FICO credit score
Keep lines of communication open as often as possible
DO
Create a savings plan
Maintain your current employment and income
Log a paper trail of funds coming in and out of your bank account
Keep good records and documentation
Keep up with your current bills and mortgage
DO
Ask questions!
THE DON'TS OF THE MORTGAGE PROCESS DO NOT
DO NOT
DO NOT
DO NOT
Change jobs, become self-employed, or quit your job
Use credit cards excessively or let current accounts fall behind
Purchase an automobile
Spend the money you have set aside for closing
DO NOT
DO NOT
DO NOT
DO NOT
Originate any inquiries into your credit
Make large deposits without checking with your loan officer
DO NOT
DO NOT
Omit debt or liabilities from your loan application
Change bank accounts
Purchase furniture
Co-Sign on a loan for anyone
Offer Accepted / Home Inspection • With the offer accepted, you are one step closer to becoming a homeowner. The sales contract will need to be reviewed and signed. • Don’t start buying furniture yet, there is still plenty to be done and taking on new financing during the mortgage process can create issues. • Having the home inspected by a third-party company is highly recommended to verify that the sellers are being truthful about the current conditions of the home. • If you’re searching for a third-party inspector, your lender might have a trusted source. If you must find one on your own, ask for their qualifications, references, sample reports, and any other questions you may have. • Some inspectors will let you attend the home inspection with them. • You will receive a detailed report of the inspectors’ findings, and if any repairs or credit are needed, the seller’s attorney will be notified.
Loan Approval and Processing • Once the offer and inspection are completed, your lender will approve, process, and finalize your mortgage. • You'll receive a closing disclosure to show the costs of processing the mortgage and lender services. These closing costs usually total anywhere from 1-5% of the home's purchase price • During this time, it's important you don't take on any other large investment opportunities or financing. • Your lender will do a credit check and verify your accounts and imcome. Don't spend the money you have set aside for clsing until after the final document s are signed.
THE B E S T TIM E