We know that buying a home can be confusing, especially if you’ve never done it before. So we’ve prepared a guide to help you keep track of the steps. Remember that we’re always here to answer any questions you may have.
1. Pre-approval – A pre-approval will tell you precisely how much the lender is willing to let you borrow, and carries a tentative commitment to secure the loan. AnnieMac Home Mortgage does not offer pre-approvals… we offer something better: Our Platinum Approval, available exclusively through AnnieMac Home Mortgage, is the best way to start the process of buying a home. Call us today to find out more.
2. Mortgage Shopping – You should contact a Licensed Mortgage Originator, who will review your finances and help determine your best financing options.
3. House Hunting – Determine the region where you would like to live, and do a comprehensive search for homes that interest you and fall within your price range (as determined by the Platinum Approval from AnnieMac Home Mortgage, or the pre-approval from another lender). Once you decide on a home, you can negotiate the terms of the sale.
4. Loan Application – Provide us with accurate information about your personal finances, including all income, assets, and debt. This will include pay stubs; bank, investment, and retirement account statements; tax returns, etc.
5. Appraisal – The home will now be appraised, and the current market value will be assigned to the property to ensure that you are not overpaying.
6. Title Search – A title company will investigate to determine if any legal or ownership issues — such as liens or judgments attached to the property — may interfere with the home’s sale.
7. Mortgage Insurance – When homebuyers get loans that amount to more than 80 percent of their new home's value, lenders usually require private mortgage insurance. This type of insurance is available for transactions with down payments as low as 3-to-5 percent.
8. Homeowner’s Insurance – Mortgage lenders always require that buyers purchase homeowner's insurance as a condition of the loan, in order to protect the bank if the home were to be destroyed.
9. Closing & Funding – The final loan and escrow documents are signed and prepared for funding.