The Home buying/Mortgage process

The Initial Interview with your Realtor
An interview lets you discuss with your Realtor what you need and want in a new home. The Realtor will then show you homes until you find one that meets your needs.

Prequalification or a Pre-approval Letter Prequalification is the process of talking with us about your financial situation. We will determine the price range you are qualified for and comfortable buying. During this discussion your lender can advise you on the best way to structure a loan to meet your needs.

Pre-approval is the process of submitting your application and financial papers to obtain a written loan commitment.

A lender will then provide a prequalification or pre-approval letter for your Realtor to attach to your Offer to Purchase and Contract.

These letters let the seller know that you are qualified to buy the home. They can also give you an edge if there are multiple offers on the home.

Offer to Purchase and Contract This document is the written agreement between the buyer and seller that explains the terms of the real estate transaction. Once signed, by both parties, it becomes a legal document. A prequalification or a pre-approval letter is often attached and required.

Earnest Money This is the initial down payment given by the buyer. It is held by the listing company or an attorney. It must be deposited within three days after the contract is signed by both parties. It will be applied to the purchase price at closing. Although it is not necessary, but often requested.

Home Inspection A home inspection is performed by a home inspector to verify that the home is in good condition. If the buyer feels that there are any repairs that the seller should make prior to closing, the agreed upon repairs or costs are made part of the contract.

Home Appraisal Your lender will probably order an appraisal on the home to verify that it is being sold at a fair market value. If the appraised value comes in below the contract price, the buyer has the option of doing nothing, renegotiating the purchase price, or terminating the contract.

The Mortgage Process You can apply in person, by phone, or online. Depending on your situation we will need some or all of following documentation. W-2's for the past two years pay stubs for the past 30 days Tax returns for the past two years and the most recent bank, mutual fund, or retirement statements.

You will choose a closing attorney. The attorney will perform a title search, obtain title insurance, and can advise you on the need for a survey. Your attorney can also advise you on any issues which may arise during the transaction or guide you as needed.

You will choose an insurance agent. Homeowner's and hazard insurance are the same thing, and will be required to protect you and the bank on any major damage that may occur to your home.

Your application, supporting documents and appraisal are sent to the bank for approval, your lender will notify you if any additional documents are required for final loan commitment. The day before closing we will call to let you know the exact amount of money that you need to bring. This cash to close needs to be a cashiers check made payable to the attorney's trust account, or the funds can be wired directly to the attorney.

 

 

 

Licensed Realtor in Wake, Chatham Orange, Johnston, Alamance, Lee, Franklin, Granville, Harnett, Vance, Warren, including Raleigh, Durham. Cary, Apex, Holly Springs, Garner, Pittsboro, Siler City, Moncure, New Hill, Goldston, Sanford, Chapel Hill. Servicing residential homes, raw land, new homes, sub-divisions, commercial land, & business buildings, flex office warehouse, office condos, Investment properties, 1031 Tax exchanges, foreclosures, river property, waterfront property, equestrian property, horse farms, builder, spec homes, townhomes, business condo units, golf course communities.
  

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