Steps to Buying a Home
The financing of a home is a complex transaction. It involves many different steps and you will speak with people performing specific functions and roles. Here is an example of the steps Geneva Financial will go through to process, approve, and fund your home loan. Depending on your preparedness, this process can take anywhere from 30 to 45 days, so it’s best to engage with our Mortgage Specialists with Geneva Financial as soon as you are seriously looking for a home.
Step 1 – Prepare Your Documentation
There is a lot of documentation your lender will need from you to verify the information you’ve supplied to them on a mortgage application. Our Mortgage Application Document Checklist can help you get prepared, so you won’t feel so overwhelmed.
Step 2 – Get Pre-Qualified for a Mortgage
The first step in the home buying process is to schedule a free phone consultation with one of our mortgage specialist partners with Geneva Financial, LLC. Contact us today at (504) 356-9100 or fill out the form below and one of our mortgage partners will contact you. During the pre-approval process your lender will:
- Review your income, credit, and savings of downpayment.
- Determine the value of the home for which you can qualify (which is not necessarily the same as what you can afford!).
- Determine the approximate minimum downpayment and closing costs needed for the purchase.
- Provide you with a conditional, written pre-approval letter, which most real estate agents and sellers will require to indicate you are serious about purchasing a home.
Step 3 – Find a Real Estate Agent and Find a Home
Now that you have your pre-approval, one of our real estate agent partners will contact you to start searching for a home.
- Search for a home.
- Make an offer and sign the contract to purchase, which will include a copy of your pre-approval letter.
- You may be required to include a check for an earnest deposit, with your offer, so the seller knows you are serious with your intention to buy.
- A seller generally has 48 hours to reject, accept, or counter your offer.
Step 4 – Apply for a Mortgage
Complete your lender’s Mortgage Loan Application Form and provide all the documentation required.
Step 5 – Choose to Lock or Float your Interest Rate
One major step in obtaining a loan is to lock or guaranty the interest rate, term, and costs associated with your loan. Many buyers choose to “lock-in” if interest rates are expected to change in the near future.
Step 6 – Final Underwriting
Once your loan application has been processed, a loan underwriter will review your mortgage loan application file to confirm that it meets all of the lender’s credit requirements and all the conditions to close have been met (ensuring every piece of information has been documented and verified, for example).
Step 7 – Loan Documents are Delivered to the Closing Agent
Upon approval of your mortgage, the closing will be scheduled and the lender will deliver all the necessary closing documentation to a local closing agent. A closing is a meeting with you, the closing agent, and an agent of the seller when you sign the loan documentation, the closing agent distributes funds and you officially own your home.
Each state handles the closing process differently – some close and fund on the same day, others close and fund AFTER the paperwork has been sent to and reviewed by the lender. Your loan officer can tell you how your state handles real estate closings.
Step 8 – The Home is Yours
Once you’ve signed all of the documentation needed for your mortgage loan and the title is transferred to your name, the keys to the home are given to you and you have successfully purchased your new home!
The content on this page is provided by our resource partner AchieveTheDream.com
How To Get Started
The first step in the home buying process is to schedule a free phone consultation with one of our mortgage specialist partners with Geneva Financial, LLC. Contact us today at (504) 356-9100 or fill out the form below and one of our mortgage partners will contact you.
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