Purchase Process

va-loan-financingImagine being able to retire one day without having to pay rent or even a house payment. For most Americans, their housing expense is the largest expense they pay every month. The sooner you purchase a home the sooner you will pay it off and can be in that very situation.

The advantages to owning your own home are not limited to the future.  There are many advantages that you can benefit from year after year.  When you pay your rent, that money is gone and you will never see any part of it again. When you pay your house payment, all the interest you pay is tax deductible and you see that benefit every year when you file your taxes. Although housing markets fluctuate, it is a proven fact that property values go up over time. Not only do you get a cash advantage with the tax deduction, but your investment grows as your home appreciates.  There are benefits to owning your own home above and beyond the financial advantages, such as pride in ownership and the ability and freedom to do what you want with your property.

There has never been a better time to purchase your first home. Interest rates are extremely low and so are home prices.  If owning your own home is something you would like to achieve, now may be the time to check out your options.  Contact Us and we will be happy to educate you on everything you need to know about purchasing your first home and answer any questions you might have.

Here at Oswego Mortgage we believe buying a home should be a fun and exciting experience. By understanding the process and doing things in the proper order, you can count on a smooth and enjoyable experience.

Talk with your Mortgage Professional

select-a-proffesionalWhen communicating with your Mortgage Professional make sure to answer all questions as accurately as possible even if you think particular information may not be needed. By having a complete and accurate understanding of your situation, we will be able educate you on all of your options and offer the best service possible.

After reviewing your file we will be able to inform you on what programs are available to you and the differences between those programs. We will be able to accurately calculate how much you qualify for and relate sales prices to monthly payments so you can shop for a home that fits within your financial comfort zone.

By completing the Mortgage application process and providing all necessary documentation, you will be ready to start shopping for your home. With this completed we will be able produce a pre-approval letter that will be needed to make an offer.

Select a Real Estate broker to help you with finding a property

Typically when a house is listed for sale the price includes the Real Estate broker’s commission so you are not paying for that service, the seller is.  Often buyers think they can save money by not using a Real Estate broker. Instead what ends up happening is the Real estate broker that has listed the property for sale receives all the commission that was intended to be split between the listing broker and the buyers broker. This is often called “double dipping” and can create problems since it is impossible for that broker to have both the sellers and buyers best interest in mind.

We work with many Real Estate brokers everyday and there is a difference between them all. If you would like we would be more than happy to recommend a few for you to choose from.

Make an offer

When you have identified a property that you are interested in making an offer on, your Real Estate broker will help you determine how much to offer. Your broker will also write the offer for you.

Your offer will be either be accepted or the sellers may counteroffer.

Once a price has been agreed upon and the offer has been accepted you will be required to make an earnest money deposit. The Earnest money deposit is held by the Title company and shows good faith on your behalf that you are planning to complete the purchase. These funds may be contributed to the transaction as part of the down payment or closing costs. For zero out of pocket loans these funds are returned to you at closing.

Contingency period

Review the preliminary title report so you are aware of any easements and other specific details about the history of the property.

Order a home inspection.

Once the home inspection is complete and any needed repairs are agreed upon between the buyer and seller it is time to order an appraisal.

Home Owners Insurance Coverage

Shop insurance companies and decide who you would like to use for your Home Owners insurance policy.  Inform your Mortgage Professional about your decision. Your Mortgage Professional will obtain an insurance binder documenting sufficient coverage for you and the lender.

Sign Closing Documents

signing-the-documentWhen all loan documentation has been reviewed and approved, the lender will issue a final approval or “clear to close”. The lender will prepare and deliver final loan documents to The Title company. The Title company’s Escrow officer will work up a settlement statement that reflects all the final numbers.

Based on the transaction, you may be bringing funds to closing. If you do they will need to be in the form of a cashier’s check. Before your appointment to sign the final documents, check with your Escrow officer regarding any possible funds to close based on your settlement statement.

Funding your loan

After all parties have signed the necessary documents, the Title Company will send the documents back to the lender for final review.  The Lender’s funder will review the signed documents and any funding conditions to determine if the loan is ready to fund and record.

The Lender wires the loan funds to the Title Company so they can disburse the funds as needed.  Then the Title Company records the Deed with the County.

Obtain your keys and move in

Congratulations! You are now officially a home owner.get-the-keys