Question: How much money do I need to buy a home?
Traditional conventional financing requires a down payment of 10 to 20% of the purchase price of the home; however, there are other programs available such as our FHA program that allows you to buy a home with as little as 3.5% down. In addition to the down payment, you should be aware that there are other fees associated with purchasing a home. For example, there are closing fees, pre-paid interest, and prorated items such as property taxes and homeowner's insurance. Call 918-683-1003 and speak with Gil to get a better idea of what you can expect.
Question: What's the difference between a pre-qualification and a pre-approval?
A pre-qualification is an informal cursory review of your income, assets, and credit, usually conducted over the phone. Once the necessary information is gathered, the lender issues an estimate of the loan amount and purchase price for which you qualify. A pre-qualification still gives a potential buyer a good idea of affordability but it is not as comprehensive as a pre-approval which is a more formal, more intense process where income, assets, and credit are documented and verified.
A pre-approval is a conditional approval that holds more weight with a seller and the seller's real estate agent than a pre-qualification, especially if you are competing with another offer. For more information regarding our pre-approval process, please click here or call (918) 683-1003!
Question: Do I need a home inspection?
Although a home inspection is not required, it is a good idea to obtain the services of a professionally qualified inspector to help you determine the condition of the home you are looking to purchase. A professional inspector will look for any structural and mechanical problems that may exist in the home that could cause problems in the future. In addition to a structural review, an inspector will also check faucets, toilets, appliances, and other items in the home to make sure everything is in working order. If something needs to be addressed, you can address them with the seller prior to closing.
Question: What type of documentation do I need for a purchase loan?
Standard documentation collected for a purchase transaction includes information regarding your income such as paystubs covering the most recent 30 days and W-2s for the last two years, asset information such as bank or mutual fund stock statements covering the last 60 days showing source of funds for your down payment, closing fees, points, pre-paid items, and other funds needed to close your loan.
Question: How long is the purchase process?
A typical period is 30 to 60 days. The time period, defined on the purchase contract and agreed upon by both buyer and seller, is usually what dictates when your loan closes.
Question: What happens at the loan closing?
Typically, you will sign your loan documents at a designated settlement office such as a title company office or attorney's office. In the presence of the signing authority, you will review and sign all your loan documents and then present a certified or cashier's check to pay the remaining down payment, closing fees and other applicable closing funds. You may also wire your funds directly to the title company. Your Loan Processor will guide you through the process and advise you on what needs to be done when. Once the loan documents are signed, you are the proud owner of your new home. Don't forget to change the locks!