Six Steps to Owning a Home- Bank Side
1.Determining a mortgage payment you can afford.
Many times you can qualify for a bigger mortgage than you may feel comfortable paying. Calculate how much of a house you can afford before looking. You don’t want to find your dream home only to determine that it is out of your budget.
Visit a local lender to determine the dollar amount of the mortgage or purchase price you qualify for. Pre-qualification is based on income, debts, available cash, and credit history. A buyer may also have to provide job history and a debt to income ratio.
3. Submit the Application for Mortgage
This typically happens after you have a signed purchase contract on a property.
4. Rate Lock
At the time you submit your application you have the option of locking your rate which means your mortgage will be based on the current mortgage rate that day. There is also the option of waiting or “floating” the rate. Check with your mortgage lender on terms and conditions.
5. Coordinate Your Closing
After your application is approved a closing coordinator will assist you as you get closer to your closing date to ensure that all documents needed are signed and given to the correct parties.
At closing you will sign all the legal documents and pay necessary fees. You will receive the keys to your new property.
Congratulations. You are a home owner.