Mortgage Explainer: 6 Easy Steps to Purchasing a Home
2020 10-13 | NFM TV
Buying a new home may seem like a daunting task, but it really comes down to six easy steps. Our latest Mortgage Explainer video will help you create your own checklist and put you on the right path to home ownership.
Full Transcript is Below:
- [Narrator] Purchasing a new home may seem like a daunting task, but it boils down to six easy steps. One, get pre-qualified. Your loan originator will look at your credit score, pay stubs, and W2s and give a preliminary determination of how much home you can afford. This will help narrow down your home search. Step two, determine your loan type. Conventional, FHA, VA, USDA? Talk with your loan originator about the best loan program for your financial situation. Step three, find a home and make an offer. This is the most exciting part of the process. Weigh your decision carefully and work with knowledgeable real estate and mortgage professionals who can help you make the best choice. Step four, apply for a loan. Once the contract on your new home has been accepted, gather all of the documents your loan originator needs to complete the loan application. These will include some of the previous documents you've provided, plus additional ones. Step five, processing and underwriting. Your loan originator will submit all of your documents to processing, who collects and verifies the information you've provided, and orders a home appraisal. Then your loan goes into underwriting. The underwriter reviews all of the documentation, may request additional documents, and ultimately gives final approval for your loan by giving a CTC or clear to close. Step six, close on your new home. At closing, all paperwork is signed by the buyers and sellers. The title for the property is transferred and all documents are recorded. The keys are yours. Congratulations. Welcome to your new home. Now, wasn't that easy?