FIRST TIME HOMEBUYERS
Buying your first home should not be a stressful experience nor should applying for your loan. Here at Essex, we want you to enjoy this next part of your life, so we feel you need to understand the entire process. In order to keep it simple, we have broken it down to the 6 steps you see below. Also, please check out the Mortgage Glossary for definitions of the more commonly used mortgage terms. We believe an educated client will be a client for life.
KNOW YOUR FINANCES
It is good to know how much you can afford. Use the calculator below to see how that number is based on your income, debts and other financial obligations. Your mortgage payment (plus property taxes, homeowner’s insurance, HOA dues, and any other applicable monthly costs) should be a number you are comfortable paying every month, as this will be in addition to your other monthly obligations. Plus, you will need money for a down payment and closing costs. Don’t worry if you think you do not have enough money saved, your Essex loan officer can help you determine how much you will need.
APPLICATION AND PRE-APPROVAL
Now that you have an idea of what you can comfortably afford, it is time to meet with a licensed Essex loan officer. This meeting can be face to face, over the telephone or by video chat -the choice is yours. At this meeting, we will review your financial profile and help you choose a loan product that best suits your individual needs. From this point, you will fill out a loan application. This application can be completed in person, over the telephone or on-line, whatever you are most comfortable with. Once the application is completed, and we have all the supporting documentation, we will issue you a pre-approval letter.
FIND A REALTOR® AND YOUR HOME
Before you start hitting the open houses, you must first locate a Realtor®. A Realtor® will bring a level of expertise that you will need as you search for a home. Furthermore, Realtors® adhere to a very strict code of ethics. Think of them as your parent/data analyst/therapist all rolled into one! Your Realtor® will not only help you sift through the available homes on the market, but
will represent your interests when you find one and wish to make an offer. If you do not already have a Realtor®, your Essex loan officer will be able to refer one to assist you.
PROCESSING AND UNDERWRITING
Once we receive your fully executed purchase contract, we will issue disclosures and then the loan will go into processing. At the same time, a title report will be ordered, and your Realtor® will open escrow.
Once you have acknowledged your disclosures, we will collect a credit card to pay for an appraisal. This is the only upfront cost. While we are waiting for the appraisal report to be completed, the processing department will review your file and you will be contacted by either the loan officer or the processor for any additional documents needed in order to move the file to underwriting.
Once all outstanding items are gathered, your application will be examined by underwriting and a credit decision issued. During this time, it is imperative that you be available to collect additional documentation should any be requested. Also, please avoid any large purchases or transfers of funds into or out of any of your accounts. If additional documents were needed, your file will go back to underwriting for final approval.
After underwriting completes the final approval, we can then issue your final disclosures. Based on federal regulations, we can close your loan 3 days after you acknowledge receipt of the aforementioned disclosures.
CLOSING THE LOAN
With an approved loan, you are on the home-stretch towards closing. The lender will reverify your employment before sending closing documents to a title company or real estate attorney, who will draw up paperwork and arrange for the signing of documents. Once the documents have been signed and funding conditions have been met, the title is recorded and the process is complete. You are a proud owner of your new home, and the keys are yours!