PURCHASING PROCESS

 

Interested in purchasing a home? You probably have multiple questions and feel overwhelmed. You are in the process of making one of the major investment decisions of your lifetime. We hope the following information will guide you through the steps in purchasing your future home.

 

Is it Your First Home? 

PERSONAL COUNSELING 

Decide on the type of home you would like to purchase and determine your time

frame. Normally, there are three types of homes that are available for purchase. The choices are: Single family; Multi family (townhome or condominium); and Cluster or Patio homes. The primary difference between a condominium and a townhome or cluster home is that you are not owner of the land. Owning a condominium you own a proportionate ownership percentile of the common grounds. If the legal description does call for a Lot and Block number then most likely it is not a Condominium.  

The personal counseling session will explain the importance of selecting the right choices for future resale of your property. I would recommend to have you consider what resale features will attract future purchasers of your home the most. Outside of location and condition, consider what features are a must, and which features you wish to have. Relative to price, are you better off with 4 bedrooms vs. 3 or the 3rd bath vs. 2 baths. Consider the 2nd or 3rd garage vs. single garage depending on price. The small difference in price today could mean a significant difference for resale in the future.  

The best compliment I can receive is for you to be satisfied in my reselling your home regardless of market conditions because you were guided to make the right selection initially.  

Some of the questions that need close attention are: how many bedrooms and baths, size of home, one or two car garage, dining room, size of kitchen, formal living room and family room with fireplace, style of home, the price range or monthly payments that you would feel comfortable with, proximity to work, schools and shopping available in the desired location. If you are not familiar with the area, we can assist with familiarizing you with the area. 

Pre-Qualified or Pre-Approved difference 

Before our initial meeting, I recommend calling some of the recommended lenders that can assist you with your financing. Once you discuss your personal finances with the lender and subject to your credit history, you may be given a “Pre-qualified” certificate. Being Pre-qualified means credit has been reviewed and approved subject to verification of your financial information. Verification and approval of your financial information will then elevate you to a “Credit-approved” purchase. Having a “Credit-approved” certificate allows you to better negotiate the purchase of your future property vs. having just a “Pre-qualified” letter from the lender.

Once the home purchase contract is accepted, the lender will require title work, appraisal, survey, and insurability, in order to “approve the home”. The final loan approval is then given once you and the property are approved without conditions.

When to purchase a home is a personal decision, however, it normally takes a few days to weeks to complete the loan process depending on your financial complexity. We can discuss the timing issue once we visit.                                      

 

The Loan Application

The majority of the time, the loan application will be taken prior to looking at homes to purchase. The loan application may be done through the mail or by personally meeting with the lender.

Anyone taking title to the property should be present at the loan application. In the case of a non working spouse, the credit report will be issued in both of your names. Various programs are available that will enable a relocated spouse to count his or her prior income for the current purchase. Restrictions do apply for the "Trailing Spouse" programs and it is not available for government financing. 

The information you provide the lender is strictly confidential. The lender may ask you questions to clarify certain items to gain a better perspective of your finances. The loan officer will know what the loan underwriter or investor requires for various loan programs. Once you complete the application, the lender will issue a "Pre-qualified” letter stating your qualifications. Some lenders will issue a “Credit Approved” certificate once they discuss your finances over the phone and your credit scores are above average. Our goal is to have you obtain the “Credit Approved” certificate as soon as practicable. 

Your loan officer understands your concerns and is there to help you with the approval of your loan. Feel free to ask any questions at the loan application about items you do not understand. Normally the lender will provide you with an Estimate of probable closing costs. 

Once the loan application is taken, the lender will proceed with verifying the information you provided. The loan packet is then given to the "Loan Processor" who will gather the necessary information and call you if there are any questions. Do not be alarmed if they call you several times. This is a normal part of the process. 

Whatever your needs are in purchasing a home, we have the experience and resources to assist you with those needs. Please let us know how can be of service to you!

 

Roy Lopez 

303-888-7800, or  roy@roylopez.com