||Understand Your Finances Having a sound financial foundation and a down payment are crucial to buying a home. Ordering a credit report and knowing your credit score is a good first step. This will allow you to be aware of and address any issues on the report before you apply for a loan and serve as an accounting of your monthly debt obligations. A complete understanding of your financial situation will give you a good start in the buying process.
||Determine a Down Payment The more you contribute to a down payment, the lower your monthly mortgage payment. At LockCreek, our Mortgage Professionals can suggest ways to build the amount you have available and can help you review additional sources for down payments that you may not have considered. Determining how much money you will need for a down payment enables you to be prepared to buy when you find the right home.
||Prequalify Prequalification assures that you will be prepared to purchase when you find the right home. It also helps you strengthen your position when negotiating with the seller as they will know that you are a qualified buyer. A LockCreek Mortgage Professional can help you apply now.
||Select a Real Estate Agent and Find a Home Every real estate market is different. An experienced real estate agent can help you select the right home and guide you through the purchase process.
||Make an Offer After finding the perfect home, you will need to consider how much to offer, the amount of the loan you will need, the terms of the loan, and when you would like the loan process to be completed--also referred to as "closing." Making an offer is generally done through a real estate agent. The agent will work on your behalf to negotiate with the seller or seller’s agent.
||Loan Processing Period Once the offer has been accepted and the terms of the purchase have been agreed upon, you will enter the loan processing period--a time when the legal and financial processes of purchasing a home take place. During the loan processing period, you will work closely with your LockCreek Mortgage Professional. You’ll receive guidance regarding inspections, appraisals, and other deadlines all of which are required to ensure a smooth and timely closing.
||Closing and Funding Once the legal and financial processes are completed, you are ready for your loan to "close." Closing (also called "Settlement," or in some states, "Escrow") is the date you sign your final paperwork. Typically your real estate agent will coordinate a time and date convenient for you, the Seller, and the escrow or title companies. Funding occurs when all papers have been signed, all conditions have been met, and the Seller and other parties are paid. On a purchase, funding typically occurs on the day of the closing or on the next business day.
||Move-In Once all contracts have been signed and the loan has funded, you will receive the keys to your new home. Whether you intend to move in immediately, or do work to prepare it for you, the home is now officially yours!