Buyers
The Do’s & Don’ts When Preparing to Buy
DO stay current on existing accounts, one 30-day late notice can compromise your ability to be approved
DO continue to use your credit cards as normal. Changing your pattern will raise a red flag and can lower your credit score
DO call your mortgage loan professional first if you have any questions or concerns
DO call your mortgage loan professional before making any large purchases, depositing/pulling outDON large amounts of money (gifts), or pulling from your retirement accounts
DON’T apply for any new credit cards! Every time your credit is pulled by a potential creditor or lender, you will lose points from your credit score
DON’T max out credit cards! Do not use more than 30% of your available credit limit during the loan process. If you pay off balances, do so across the board
DON’T consolidate your debt! When you consolidate all of your debt on one or two credit cards it will appear that you are “maxed out”
DON’T close credit card accounts- this will negatively impact your credit history
DON’T transfer money between bank accounts unless receiving complete documentation from your bank itemizing all transfers
DON’T pay off collections or “charge-offs”. If you want to pay them off do it through escrow at closing
DON’T make a career move while obtaining mortgage financing. If an opportunity should arise, discuss it with your loan professional
DON’T let bank accounts go in the red- any accounts with insufficient funds cannot be used, so make sure all you’re accounts are in good standing
DON’T have a relative/friend pay for anything related to the purchase of the home- gifts are only allowed under specific lending guidelines & must be documents
The Purchasing Pathway: How it works & what you should expect!
Get Prequalified!
Speak with a lender to find out not just what you qualify for but what you can afford
Be sure to understand what you should & shouldn't be doing prior to closing on your new home
It is a good idea to submit your last 2 years of taxes, last 3 months bank statements, & recent pay stubs
Initial Appointment
This is important for us to understand your wants & needs as a buyer
3 Important criteria: Location, Price, & Style/Condition- this will determine the properties we search for
Viewing Homes
Start by attending open houses & driving by homes you may be nterested in based on your MLS portal
This will give you an idea of what you like/dislike before any formal showings
Remember, finding your new home is a process of elimination, not selection
Write the Offer, Negotiate Terms, Contract Ratification, Appraisal Contingency
Review and understand the purchase contract and addenda with Realtor
Remember, there is much more to a contract than sales price
Your Earnest Money Deposit (EMD) will be made upon ratification
Loan Application
Within 7 days of contract ratification, you will need to officially apply for your loan with your lender
Property Inspection
Within 14 days of ratification the home inspection(s) usually take place. This cost usually ranges from $300-$500, depending on the square footage.
Appraisal
An appraiser is an expert who confirms the value of the home you're buying
This is charge prior to closing and can range from $400-$600 (your Lender can confirm this cost)
Hurry Up & Wait!
After these other steps are complete- there is some downtime while we wait for your sellers to complete repairs/inspections. Stay available for your Realtor & Lender. There is a 99% chance your Lender will require updated paperwork throughout the process.
Final Walkthrough
After your loan is "Clear-to-Close", we will visit the home one final time prior to closing to be sure it is in acceptable condition. This typically happens 24-72 hours prior to closing.
Closing Time!! (45-60 days after ratification)
Also known as settlement, you will sign final documents at the closing attorney's office
Upon conclusion of the paperwork, we'll give you the keys & you will be the rightful new owner!
