It’s important to feel as confident as can be while you move through the market and the homebuying process, but it can be difficult to know where to start. Below, we’ll look at some key questions and explore the answers.
Identifying your budget and how much you can afford to spend on a home is much more than just saving for a down payment. There are also closing costs, appraisal fees, and ongoing costs to consider, such as maintenance and repairs. It’s better to think ahead than to be ambushed by higher or unexpected costs.
Take a detailed look at your monthly debt and spending. These factors, in addition to your credit score, will determine the amount of money you may spend on a home.
Working with a Loan Originator before entering the housing market can give you a major advantage: a pre-qualification or pre-approval letter. A pre-approval letter requires verified financial information including your credit, income, assets, debt, and employment history. Being pre-approved demonstrates to sellers that you’re a low-risk buyer.
Your Loan Originator can help you find a Real Estate Agent to assist you with house hunting. Before entering the market, make note of any properties you’re interested in and watch to see the asking prices and how long they stay on the market. Let your Real Estate Agent know about your must-haves or can-live-withouts to focus your search more effectively.
Experts suggest thinking about the homebuying process as two major segments: searching for the home and closing on the loan. The steps leading up to the mortgage application may take up to two months and the closing timeline might take thirty days or longer. Once you put in an offer for a property and it’s accepted, you enter the escrow period. This covers all the steps between the time you and the seller agree on a price and when you take possession of the home. According to a report from ICE Mortgage Technology, the average length of a loan application closing process in early 2021 was 58 days.
Remember that the homebuying process is different and unique to each person or family. Contact us today to be put in touch with a knowledgeable Loan Originator who will assist you through the process and answer any questions you have along the way.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.