Once you have done some home loan comparison, is buying a home a simple process? If you know the following five milestones involved in buying a home, the journey will be smoother.
- Pre-Qualification
Your search for a new home begins with a home loan comparison and seeking pre-qualification. It is a costless, commitment-free, brief, 10 to 20 minutes analysis giving a push to your efforts in searching for the right home. You can meet a bank’s loan officer or a private lender in person or even call them. Many home seekers opt to fill an online form. Pre-qualification is doubly advantageous as it sets a budget and helps strengthen your negotiating position while making an offer on a property.
- Application
Once you have decided which home to buy, you would need to approach the seller with an offer. Its best to engage the services of a real estate negotiator. He will conduct negotiations and a contract can be submitted to purchase with a pre-qualification letter. As soon as your offer is accepted, you will receive an initial disclosure package. Now you can start the application process. Your documents need to be completed quickly and meticulously to ensure that the loan process is on track.
- Processing
This phase covers your appraisal and title work. After lining up the necessary documentation, the processor will closely examine every document for accuracy and completeness. It will involve verifying information on the title work, appraisal, credit report,and any other document to complete the process. It will then be passed on to the underwriter.
- Underwriting
This is a crucial stage when the underwriter reviews your disclosures, asset documentation, credit, employment details, appraisal, and other documents and checks whether they satisfy the loan programs guidelines and regulations. When all conditions are fulfilled as well as contingencies are taken care of, the underwriter will issue the final clearance. The loan is then sent to closing.
- Closing– The Final Milestone
Now you will receive your closing disclosure(CD). You will be provided a confirmed date, time and location for closing. Check the CD thoroughly, as it states your loan terms, closing costs, and the amount you need to bring to the settlement. At this settlement meeting, documents will be signed by all the concerned parties, funds get distributed, and the ownership of the home will be transferred to you from the present owner.
If you want to know more, don’t hesitate to contact us at Home Loan Comparison on 0419 856 669.We can provide comprehensive advice on the different types of loans and how to go about the entire loan application process and more.