Home Buying Process
Purchasing and moving into a new home is an exciting process, but especially so with your team of mortgage professionals from Wallick & Volk assisting and supporting you every step of the way! Here we have provided you with an overview of the process, and some tips that will make the dream of home ownership easier for you.
Get Your Finances in Order
The health of your financial situation will determine whether or not a lender will grant you a mortgage. One of the most important steps you can take towards the ultimate dream of home ownership is to review your personal finances and make any necessary changes and improvements. This will significantly help the home buying process run more smoothly.
Reduce your debt. A lender typically wants your total debt to be no more than about 38% of your income. This is your debt-to-income ratio, or DTI. For example, if your monthly income is $5,000, then a lender will calculate that your total monthly debt can be $1,900. But if you already have monthly debts equaling $1,500, then you will only have $400 left for a new mortgage payment. Remedy this by paying down your debt as much as possible, which will increase your borrowing power. Always begin with paying down your highest interest debt first, such as high interest rate credit cards. Then pay down your lower interest debt
Develop the habit of paying your credit cards off every month and never carrying a balance. Almost nothing can kill the dream of home ownership faster than credit card debt
Determine how much you can afford. Based upon your income and existing debt, figure out how much you are comfortable borrowing for a house
Clean up your credit report. A bad credit score can prevent you from qualifying for a mortgage. Also, the worse your credit score, the higher the rate of interest on a mortgage will be
Get your down payment together. A down payment is essential to qualify for a mortgage. Typically, a down payment is 3% to 20% of the purchase price of the house. Tip: Don’t plan on borrowing the money for a down payment – this counts as additional debt
Get Pre-Qualified with Wallick & Volk!
Now that you've determined what you can afford and your finances are in order, the next step is to arrange financing. Getting prequalified with Wallick & Volk lets you know how much house you can afford. It also can give you a big advantage at different stages of your house hunt, from helping you prepare your budget and set your expectations, to strengthening your negotiating position with the seller when you’re making an offer on a home. Here are the Pre-Qualification steps:
Submit an Application: Basic borrower information is collected, and a credit report is obtained and reviewed
Pre-Qualification - Preliminary documentation is collected and reviewed by your Wallick & Volk team to verify the information provided on your application
Your Wallick & Volk mortgage advisor will then review the results with you and answer any questions that you might have
Look for the Right Home
Finding the right real estate agent to help you through the search and purchase process is important. A good agent will provide you a professional market analysis to show how much a given house is really worth and help you avoid paying too much for a house. They will help you negotiate the price, and also guide you through the contract and purchase process.
When looking, don’t forget to consider location - think about the kind of neighborhood you want, the quality of the schools in the area, the length of your commute, and the availability of local conveniences and amenities, and the home values in the area.
Be sure to make a list of the things you will want to have in your new home. Determine how many bedrooms and bathrooms you need, and how much overall space you desire. How big does the kitchen need to be? How many closets or how big a garage? Will you need a big yard for your kids and/or pets?
With the right agent and your list, you are ready to find the best home for you!
The Mortgage Process
Now that you’ve found the home of your dreams, you are probably wondering what’s next. The great news is that your Wallick & Volk team will be guiding you through what can sometimes be a daunting experience. Because Wallick & Volk has unparalleled service and arguably the fastest closing times in the industry, you are in good hands! Here are the next steps:
Purchase Contract is received by Wallick & Volk
Your mortgage team with Wallick & Volk will order an appraisal, title report, and update your file with any expired documentation, as needed, and produce the proper disclosures for all to sign
Your mortgage originator will also discuss the advantages of locking in your interest rate
Loan Approval Conditions Approved -Conditional credit loan approval obtained contingent on property/collateral approval
Home owners insurance requested and received, title report and all outstanding credit conditions are collected and reviewed
Final Submission to Underwriting for Approval
Your loan file is moved to the closing department
Once a Clear to Close is received, your loan file is prepared for closing
Closing Disclosure - Information from title is requested and the Closing Disclosure (CD) is delivered to you the borrower(s)
Closing Documents - Upon your receipt of the Closing Disclosure, loan documents are drawn and sent
Signing in 3 Days - Buyers & sellers are to sign loan documents 3 days after evidence that the borrower has received the Closing Document (CD)
Funding & Recording – Signed documents are recorded, funds are disbursed per sales agreement