If you’re looking to become a homeowner soon, then you are in the right place. The homeownership process is not the easiest to understand; however, with a mortgage company in Plantation, FL guiding you through it, it’s more manageable.
The first thing you should know about the mortgage process is that there are many steps before you get to call the home yours. But don’t let this intimidate or overwhelm you. Once you learn more about each step, you’ll see that it’s a breeze.
To get started learning more about the mortgage process, keep reading!
Step 1: Come Up with a Budget
Like any other large purchase in life, budgeting is key. Buying a house is one of the biggest investments to make. It’s also an investment that many people spend a chunk of their life paying off. While that’s common, it’s always best to have a firm budget.
By coming up with a budget, you can take a deep look at finances and determine how much is reasonable to spend on a home. When you come up with a budget, don’t forget to factor in any HOA fees, garbage pick-up fees, pest control, pool maintenance, and more.
Step 2: Seek Pre-Approval and Start Shopping
Pre-approval is a step some new homeowners skip, but we recommend seeking it out. Not only can pre-approval help you secure your dream home, but it also secures your budget. When you get pre-approved, the mortgage lender has let you know what amount you can borrow. From there, you can shop for homes within that budget. The seller will also feel more inclined to sell their home to you with this pre-approval letter.
Step 3: Make an Offer and Secure a Home Investigation
Once you find your dream home within your budget, you can make an offer to the seller. During this step, having a real estate agent can help streamline everything. Sometimes buying a home isn’t as straightforward as the seller approving your offer and you putting down a deposit.
There might be some conditions you need to first meet before proceeding with a deposit, but you’ll be made aware of those before it’s time to close.
The house may also look perfect right now, but there could be plumbing, electrical, and structural damages that do not meet the eye. Because of this, you’ll also want to look into working with an inspector to make sure there are no excessive repairs that need to be done to the home.
Step 4: Find a Mortgage Lender and Complete the Mortgage Application
Now that you have your eyes on a home and have had an offer accepted, you can shop around for a mortgage lender. If you pursued pre-approval, then you might already have a mortgage lender. But, if you skipped that step, then you will begin shopping around at this point.
If you’re unsure where to look, Ace Mortgage Loan Corp., your local mortgage company in Plantation, FL can help. We have mortgage lender services for new and existing homeowners.
Once you secure the mortgage lender, you will need to complete the mortgage application. If you’ve already been pre-approved, you likely have much of the application completed and will only need to complete a few more documents.
Step 5: Seek Home Appraisal
With much of the process over with, you’re nearing the finish line. But, before your mortgage goes into underwriting and you get the keys, you should seek a home appraisal.
The appraisal will let you know if you are paying a fair price for the house. It’s beneficial for peace of mind and will be a requirement if you are trying to have the loan approved at the contract purchase price.
Step 6: Underwriting
The underwriter’s job is to review the application. They look for anything that should get questioned or would require more information. However, their biggest concern is with the amount of cash you have, your credit history, and if the loan and the home appraisal values align. They want to see that you’re someone who will pay back the loan. During this review, you may get some phone calls and emails, and the underwriter will ask some questions to get clarification.
Step 7: Closing Day
Now that you have jumped through all of the hurdles, it’s time for closing day. On closing day, you will have many papers to sign and receive specific instructions on signing them. One document you’ll be signing is your closing disclosure. This paper will display the costs, similar to the loan estimate. Once you review and sign everything, you then get the keys and officially own the house.
Contact Ace Mortgage to Learn More
Becoming a homeowner is a big deal!
It’s a huge accomplishment and one that often takes years in the making. Here at Ace Mortgage Loan Corp. https://www.mortgagescoralsprings.com, we know how confusing the mortgage process can be. But that’s what we’re here for as a mortgage company in Plantation, FL.
For your mortgage questions or mortgage services, call (954) 945-7841.