For those searching for a home, especially those entering the homebuying and mortgage world for the first time, one of the more daunting elements may appear to be the timelines involved. Obtaining a mortgage and buying a home are processes that take some significant periods of time, and while these may seem somewhat intimidating, they’re actually much easier to understand once you’ve broken them down into simple steps.
At VIP Mortgage Inc., we’re proud to offer numerous home loan options for all our clients, and also valuable assistance with the navigation of the mortgage and homebuying timeline. From the very earliest steps you should be taking here all the way through closing and finally moving into your new home, what are the important crux points in this process to be aware of? This multi-part blog series will go over the entire approach from day one.
First and foremost, before you begin with any mortgage applications, home searches or other important parts of the process, you need to settle on two vital professionals who will assist you: A realtor and a loan officer. The realtor’s role is to help you with your home search itself, from finding and touring quality homes you’re interested in through negotiating with sellers whenever you make an offer.
The loan officer’s primary role is to assist you with pre-approval and other forms of mortgage acquisition. When you’re ready to make an offer, your loan officer will arrange a purchase letter than indicates your purchasing power – this letter is extremely valuable for making a robust offer. In addition, your loan officer will assist with several other important mortgage and financial areas.
Our next several sections will go over how the process works once you’ve selected these professionals.
If you’ve made an offer on a home that stands out to a seller, they will accept the offer – and this is where the real process begins. At this point, a purchase contract, which goes over all the rights and responsibilities of both buyer and seller, will be created, signed and then sent to both parties, plus given to the closing officer and loan officer within a couple days.
At this point, your loan officer will prepare what’s known as a TRID form, short for TILA-RESPA Integrated Disclosures. This form is simply to inform you, the buyer, of all the costs and expenses associated with the mortgage, including closing fees and any others present. This document should be prepared within three days of offer acceptance.
In addition, the loan officer will order an appraisal of the home by an objective third party. The goal here is for the home to appraise for at least the agreed-upon purchase price; if this does not happen, the buyer and seller will potentially have to re-negotiate the price. Appraisals may take as long as 10-14 days to be completed and returned.
For more on the mortgage and homebuying timeline, or to learn about any of our mortgage rates or services, speak to the staff at VIP Mortgage Inc. today.