You found out how much you made, how much you spent in bills, how much you could afford your mortgage payments to be, how much your loan could be, what amount of a purchase price you could afford, and how much you needed/have for a down payment. Then we went about finding a Realtor that worked well for you and got you pre-approved for a loan.....WOW! What a great educational day this has been.
Now we are at a fun part of the process....you shouldn't have to do much except wait after you have completed step 8. First things first, you need to take the accepted purchase and sale agreement (meaning you and the sellers have agreed and signed your offer to make it official) to your lender. Then you need to ask to see all the conditions that you are required to do in order for the loan to get compelted.
Conditions are set upon the underwriter/bank that are requirements in order for a loan to be signed and funded(meaning the money actually goes out to where it's suposed to). Some conditions that are very normal on a purchase are as follows:
Verify the property value matches the purchase price but is not less then the purchase price
Verify borrowers income: Obtain a copy of the most recent 30 days pay stubs, 2 years tax returs, and W2's.
Verify assets to close: Obtain a copy of your most current 2 month bank statements
Verify employment: VOE (which means verification of employment - this can usually be done over the phone
Complete Copy of Home Owners Insurance - you need to provide the lender with the agent name, company name, and phone number of whoever you are going to use for insurance
These are just a few of the basic conditions that lenders will have on your loan. You can request a copy of these for your records and ask to be informed of when these conditions come in.
Next, after you have given your lender the purchase and sale agreement and found out what conditions you need to meet go and collect all the information requested and provide it to your lender within 24 to 48 hours, the quicker you give it to them the qicker you will find out if anything else is needed.
Once you have done this you should also schedule an inspection with your Realtor. The inspection will allow for a license Home Inspector to come out to your home and make sure that everything is sound and up to current standards. This can also save your butt! When you get an inspection you will be sure that you are buying a good home, and if for some reason the inspector finds that there is something wrong with your home you can provide a copy of the inspection to the sellers and either request for them to fix the problem or tell them you want to negotiate the price, or worst case cancel that purchase. If you cancel due to an inspection you usually are in the clear because your Realtor would have put in your offer that if the inspection came back with problems you could re-negotiate your offer or back out.
So what if you are buying a new home? Do you need an inspection? In my opinion, YES! Even new homes have problems. We are all humans and we all make mistakes. Wouldn't you feel better to know that you are buying a sound home that has no constructural or electrical mistakes? Now keep in mind you are not required to do an inspection but it is recomended.
Once you are done with the inspection and you have given all of your conditions to the lender now is the time for you to sit back and wait for the proccess to be done. Now a lot of my buyers will call me regularly to get updates and that is perfectly fine, others will just sit back and wait for me to tell them things are done. It is all up to what kind of person you are and how informed you want to be.
Congratulations you are almost done with buying your first home, and you have finished Step 8!! :-)
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