When it’s time to move or upgrade to a new home, you’ll have more experience, but there are some new rules to navigate.
It’s an exciting time, with lots of details to consider. Thankfully, our team at Division Mortgage has been through it a time or two, and we’re here to walk you through all the preparatory steps to make good decisions before, during, and after your purchase.
To get an idea of the mortgage size you’ll be eligible for, we’ll start by gathering the necessary information to get you pre-approved for your loan. That way, when you find your dream home, you won’t waste any time.
You’ll need the following documentation:
- Copy of photo ID
- Social Security number
- Copies of checking and savings account statements for the past 3 months
- Most recent pay stubs detailing your year-to-date earnings
- Federal tax returns with W-2’s, K-1’s, 1099 for the past 2 years
- Evidence of any other assets, such as stocks and bonds
- Contact name and address of someone who can verify your employment
Make an Offer
When you’re ready to put in an offer, you’ll work with a real estate agent who will conduct the negotiations and help you determine an appropriate down payment amount.
Fill Out Mortgage Paperwork
The mortgage process begins when the seller accepts your offer. We’ll review your mortgage application and financial information and begin the following procedures:
- Appraising the home to determine its value
- Updating your credit report
- Selecting homeowner’s insurance and title company
- Sending your loan to an underwriter to assess risk and get final approval
You made it! After your final loan approval, we’ll send you your final disclosure paperwork, which you are required to sign a minimum of three days before the scheduled closing date. On your closing day, we’ll introduce you to your settlement agent, help you transfer funds to your title agency to cover a down payment, closing costs, taxes, and insurance, and go through the closing documents together. The settlement agent will record the purchase.
Keep Your Loan Healthy
Once we’ve looked at your finances together, we’ll help you get in a new mortgage that better fits your needs. This involves a credit check, loan application process, and finally, a closing on your new loan.
If you find yourself paying high monthly interest rates on different sources of debt and needing some extra cash flow, you may be a good candidate for a debt consolidation mortgage. This is only a good idea in specific circumstances, which we’ll help you navigate.