Monday, June 10, 2019

An Inside Look At Closing On A New Home

Closing on a new home can be a drawn-out process. Significant financial purchases tend to take longer due to the amount of money involved. Such a sensitive process is best carried out with the assistance of a trusted mortgage lender near you. But everything going smoothly doesn’t just depend on the efficiency of the experts around you. To get a grip on the closing process, educate yourself with the ins and outs of closing on a home.

The journey to closing begins with pre-qualifying for a home loan and singing a contract.

But this is just the tip of the iceberg. The next steps involve the lender trying to complete the financial package, the title company doing the necessary research, surveys and appraisals are put into motion, and the homebuyer orders home inspections and obtains homeowners insurance. Anything misstep during this process could lead to a delay.

As a homebuyer, you need to know that pre-qualifying for a mortgage loan and qualifying for it are two very different things. To get pre-qualified a homebuyer must meet with the lender and provide essential information (e.g. social Security number, income, etc.). After checking your credit score, income, and employment, the mortgage lender writes up a document—based upon this preliminary information—that states what size of loan you might qualify for.

Remember, this is not a final conclusion or a mortgage loan approval. As a matter of fact, many lenders these days encourage homebuyers to skip pre-qualification and go directly to qualification. That’s because the actual qualification process typically involves giving the lender vital information that will ultimately need to be handed over such as: W2 forms, bank statements, tax returns, and proof of income.

Be sure of your facts and figures, because any errors, inconsistencies, credit problems, or misinformation could delay the already protracted process of applying for a mortgage.  Whichever route you choose, both pre-qualifying and qualification should be finished prior to stopping in at any open houses.

Applying for qualification is the most involved a borrower will be in the process. However there are still other aspects of closing on your new home that you should be aware of.

Lenders should provide buyers with a fairly accurate estimate of closing costs. Closing costs typically run about 3 to 6 percent of the loan amount.

One business day before closing you have the right to inspect the Uniform Settlement Statement. This itemizes the costs of all services you must pay at closing.

The lender is responsible for providing you a truth-in-lending statement that details all the costs pertaining to the loan.

The title company’s job is to research public records and verify that the buyer and the seller don’t have any lawsuits, liens, or judgments against them or the property.

The real estate agent is tasked with staying in contact with the title company during the research phase just to make sure that any problems that might surface are dealt with swiftly. Any last-minute surprises could lead to closing delays.

Before closing, the homebuyer should order inspections on the house and property to ascertain that no major repairs are required. Repairs could warrant a change in the price of the home. The homebuyer should be there with the inspector when it’s done. Why? Because an inspector’s report can be 10-12 pages long and full of technical jargon, so being there to ask questions and get on-the-spot explanations can really help you get a grip on the situation.

A final walk through of the home should be scheduled by the new homeowner with their real estate agent. You want to make sure that the house is in the condition that you agreed upon in the contract. Remember, once the closing is done, you’re the owner of the house—as is. You no longer have any legal power to get the seller to fix anything, and the seller no longer has any legal responsibility to do so.Any minor misstep in the closing process could augment the price of closing or leave the new homeowner with a house they don’t want. Tap into the real estate network when you contact the mortgage lenders at Affiliated Mortgage.

Closing on a new home can be a drawn-out process. Significant financial purchases tend to take longer due to the amount of money involved. Such a sensitive process is best carried out with the assistance of a trusted mortgage lender near you. But everything going smoothly doesn’t just depend on the efficiency of the experts around you. To get a grip on the closing process, educate yourself with the ins and outs of closing on a home.

The journey to closing begins with pre-qualifying for a home loan and singing a contract.

But this is just the tip of the iceberg. The next steps involve the lender trying to complete the financial package, the title company doing the necessary research, surveys and appraisals are put into motion, and the homebuyer orders home inspections and obtains homeowners insurance. Anything misstep during this process could lead to a delay.

As a homebuyer, you need to know that pre-qualifying for a mortgage loan and qualifying for it are two very different things. To get pre-qualified a homebuyer must meet with the lender and provide essential information (e.g. social Security number, income, etc.). After checking your credit score, income, and employment, the mortgage lender writes up a document—based upon this preliminary information—that states what size of loan you might qualify for.

Remember, this is not a final conclusion or a mortgage loan approval. As a matter of fact, many lenders these days encourage homebuyers to skip pre-qualification and go directly to qualification. That’s because the actual qualification process typically involves giving the lender vital information that will ultimately need to be handed over such as: W2 forms, bank statements, tax returns, and proof of income.

Be sure of your facts and figures, because any errors, inconsistencies, credit problems, or misinformation could delay the already protracted process of applying for a mortgage.  Whichever route you choose, both pre-qualifying and qualification should be finished prior to stopping in at any open houses.

Applying for qualification is the most involved a borrower will be in the process. However there are still other aspects of closing on your new home that you should be aware of.

Lenders should provide buyers with a fairly accurate estimate of closing costs. Closing costs typically run about 3 to 6 percent of the loan amount.

One business day before closing you have the right to inspect the Uniform Settlement Statement. This itemizes the costs of all services you must pay at closing.

The lender is responsible for providing you a truth-in-lending statement that details all the costs pertaining to the loan.

The title company’s job is to research public records and verify that the buyer and the seller don’t have any lawsuits, liens, or judgments against them or the property.

The real estate agent is tasked with staying in contact with the title company during the research phase just to make sure that any problems that might surface are dealt with swiftly. Any last-minute surprises could lead to closing delays.

Before closing, the homebuyer should order inspections on the house and property to ascertain that no major repairs are required. Repairs could warrant a change in the price of the home. The homebuyer should be there with the inspector when it’s done. Why? Because an inspector’s report can be 10-12 pages long and full of technical jargon, so being there to ask questions and get on-the-spot explanations can really help you get a grip on the situation.

A final walk through of the home should be scheduled by the new homeowner with their real estate agent. You want to make sure that the house is in the condition that you agreed upon in the contract. Remember, once the closing is done, you’re the owner of the house—as is. You no longer have any legal power to get the seller to fix anything, and the seller no longer has any legal responsibility to do so.Any minor misstep in the closing process could augment the price of closing or leave the new homeowner with a house they don’t want. Tap into the real estate network when you contact the mortgage lenders at Affiliated Mortgage.

A Little About Affiliated Mortgage

By simplifying the mortgage process and providing clients with high quality home loans, Affiliated Mortgage strives to build unified and lasting communities. For over 30 years we’ve been supplying residents of South Dakota (Rated as top quality lenders Rapid City), North Dakota, Wisconsin, Wyoming, Colorado, and Arizona with low mortgage rates that enable them to achieve the milestone of owning or refinancing their own home.  We are headquartered in Rapid City, SD and we are the top mortgage loan provider to a variety of surrounding cities including, Ellsworth Air-force Base, Box Elder, The Black Hills, Ashland Heights, Rapid Valley, Black Hawk, Piedmont, Sturgis, Deadwood, Lead, Keystone, and Belle Fourche.  We also have a trusted presence in Sioux Falls, SDSpearfish, SD,Pierre, SD, Fargo, NDBismarck, NDCasper, WYGillette, WYCheyenne, WYDenver, CO, and Phoenix, AZ. Our trusted reputation is built on our sincere resolve to build relationships of trust, respect, and accountability. Our chief goal is to provide clients with the best loans possible so that we can welcome them into our communities. If you are looking for the best mortgage companies near you, Affiliated Mortgage is your answer.

A Little About Affiliated Mortgage

By simplifying the mortgage process and providing clients with high quality home loans, Affiliated Mortgage strives to build unified and lasting communities. For over 30 years we’ve been supplying residents of South Dakota (Rated as top quality lenders Rapid City), North Dakota, Wisconsin, Wyoming, Colorado, and Arizona with low mortgage rates that enable them to achieve the milestone of owning or refinancing their own home.  We are headquartered in Rapid City, SD and we are the top mortgage loan provider to a variety of surrounding cities including, Ellsworth Air-force Base, Box Elder, The Black Hills, Ashland Heights, Rapid Valley, Black Hawk, Piedmont, Sturgis, Deadwood, Lead, Keystone, and Belle Fourche.  We also have a trusted presence in Sioux Falls, SDSpearfish, SD,Pierre, SD, Fargo, NDBismarck, NDCasper, WYGillette, WYCheyenne, WYDenver, CO, and Phoenix, AZ. Our trusted reputation is built on our sincere resolve to build relationships of trust, respect, and accountability. Our chief goal is to provide clients with the best loans possible so that we can welcome them into our communities. If you are looking for the best mortgage companies near you, Affiliated Mortgage is your answer.

© 2019 Affiliated Mortgage, LLC. NMLS #14211: AZ NMLS#0947858. All Rights Reserved. Affiliated Mortgage, LLC is a Division of Lend Smart Mortgage NMLS #4474

Developed and designed by https://blairallenagency.com

The post An Inside Look At Closing On A New Home appeared first on Affiliated Mortgage.

No comments:

Post a Comment