There are several major distinct steps in the home purchase process, and several relate to obtaining financing. It may be confusing for both first time and experienced home buyers. This blog offers basic information about steps in the home loan process for buying New Hampshire properties and includes what you may want to know prior to starting the process.
Steps In The Home Loan Process For Buying New Hampshire Properties
A pre-approval is an introductory analysis of your financial information and credit rating to estimate what you may be able to obtain for a loan amount. It ensures that you meet the most basic requirements for a loan. Pre-approvals are not a guarantee that you will be able to obtain financing, but is a typical first step in the mortgage process.
An application takes place usually after you have an agreement to purchase a property. You may be asked for additional financial paperwork and information. The specifics on the property are also reviewed by the mortgage company. They will request a copy of the Purchase and Sales agreement in order to proceed. Your contract will often specify that you complete an application within a specified period of time.
An appraisal is mandated by a mortgage company (although buyers are generally carry the burden for the expense) to identify the current market value of the property. Appraisers will compare your property to others that recently closed in the area within recent months. A specific dollar amount is generated. Basically, the value of the home must justify the loan amount.
After your financial information and the details on the property are analyzed, the lender prepares a commitment letter. This assures the parties that no major problems have been identified and that the lender is somewhat certain that the mortgage will result in final approval. There can be a few conditions noted in the letter such as an employment verification and last credit check. Therefore, it is crucial not to make major purchases or alter your financial situation even after a commitment is issued as it may lead to a fall thru.
Clear to Close
A clear to close is essentially the final approval of a loan. It verifies that all requirements have been met and that the mortgage company will send the file to the closing agent. This sometimes takes place within days or hours before the scheduled closing date.
The settlement includes signing of documentation and filing of paperwork into public record. Be sure to bring proper identification and a money order or certified check for any amount due. Personal checks or cash are typically not acceptable. The exchange of funds takes place at or immediately after and the property becomes officially yours!
A Few Final Notes
Deadlines are an important facet of any real estate transfer, so make sure that you understand the deadlines and what you must perform to comply with each condition. Getting representation from a diligent mortgage consultant and real estate agent will be a big help. They can provide you with guidance and assistance, monitor deadlines, and make it a more positive experience. As a local loan consultant, I can with your mortgage needs. Contact me, Customer Service, at Accurate Title via 800-639-4405 or firstname.lastname@example.org.