Pre-Qualifications are necessary when shopping for a home. This will certify with realtors that you can secure a loan for a desired purchase price. Talk with one of our mortgage specialists to qualify your spending limit, and prepare letters to provide realtors with your qualified spending limits.
Steps in buying your first home:
- Get your finances in order. Know your credit score & credit profile, get copies of your taxes from the prior 2 years with W2s, get recent paystubs, get banking & investment statements, and know your monthly expenses & payments. This will help in determining what you can afford & will also be used in preparing a pre-qualification letter that will be needed during the purchase process. When purchasing your first home you must consider the additional monthly costs: mortgage payment, utilities, taxes & insurance. If your credit is messy you should consider cleaning it up before applying for a mortgage. Mortgage rates are based on your credit history & credit profile. Good credit translates to better rates! Late payments & delinquent accounts can ruin a purchase, or dictate a higher rate because of the risk associated with poor credit. Mortgage rates can vary daily, so it’s a good idea to familiarize yourself with the current mortgage market.
- Find a Realtor & start looking. Good realtors have happy clients, so ask around to your friends, family, co-workers, or mortgage professional about their experiences with realtors. Referrals can often be the best way to select the best candidate. Make sure your choice has experience in the area you are looking at, and also a good negotiator. Before you start looking it’s wise to make a pro- & con- list, ranking what is most important to least important of things you want with your new home. Think about your lifestyle, and needs for the long term.
- Investigate. It might be a good idea to look into the reputation of the home builder or condo community. The Better Business Bureau is a good place to start, or an internet search can be useful as well. If your neighborhood is involved in a homeowner association or condo association, research the financial health of the association, a poorly managed association can cause difficulties in the mortgage process. It’s OK to ask associations for their financial statements, to verify the association is not having financial difficulties. Research your neighborhood for schools, safety, crime, traffic, the possibility of future development, ect.
- Make an offer & Apply for a Mortgage. Good negotiating skills can be very useful when it gets to this step in the process. Depending on the area, and demand for homes, prices for homes could be selling less than the list price, or more; a knowledgeable realtor will be able to gauge this when making an offer. When applying for a mortgage, you must determine the term (or years) of your loan. Depending on the lender, typical mortgage terms are 30 year, 20 year, 15 year or 10 year mortgages. An experienced mortgage professional should help you determine if a niche loan product might be a model. Loan officers can help you determine if Conventional, ARM, 203k, VA, USDA, or FHA loan best fits your scenario. Have enough cash for a down payment- generally minimums are 10% down and extra funds for closing costs. Ask your mortgage professional about low down payment options. A home inspection is highly recommended. Although homes may be sold “as-is” you might be able to get a credit from the seller for something large.
- Prepare for the closing. At closing you’ll need to pay for closing costs and down payments. This is done by way of certified funds. Within a day or two of closing, you will review a settlement statement with your loan officer to determine the funds that will be needed at closing. Homeowner insurance policies must be secured prior to closing. Many realtors recommend buyers having a financing contingency that will let them out of their contract without penalty if the loan is not secured. Additionally buyers should also consider a contingency that the home appraise for at least the selling price.
Why should you choose Hillbrook Financial to help refinance?
Experienced Loan Officers, with knowledge of the real estate & mortgage industries High standards for customer service. Refinances are routine for Hillbrook, with 80% of our volume generated by refi’s- we’ve been there & done that! Open communication with our clients. Phone, email, in-person: we provide multiple communication channels for our clients to contact us. Competitive mortgage rates- small business with low overhead costs, reducing costs to our client. American Owned, small business. We do not outsource overseas. High customer satisfaction. Accredited Business, “A” rating, with the Better Business Bureau (BBB). Yahoo & Google reviewed. Members of local professional associations: CCCBI, SWRA, MAGNET & Philly Leaders. Broker with relationships with 10+ lenders, allowing us to shop the market for the lowest mortgage rate We thoroughly review loan documents prior to closing to fully explain the documents you are required to sign, and the amounts that appear on the loan documents. Most popular loan types with First Time Homebuyers: 30yr Fixed FHA, 30yr Fixed conventional, My Community loan, Homepath loans, VA loans.