Financing Your Home
Buyers have many options when it comes to financing the purchase of a home. In most cases, buyers approach their bank or a mortgage company to obtain financing. Sometimes sellers are willing to hold all, or part of, a mortgage. Family members are a common source of financial support, and in some cases, investors can be found who will join in "equity sharing" relationships.
How much can you afford?
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Prequalification
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Establishes how much you can afford to borrow
Is not an assurance of mortgage approval
Pre-approval -
Is a firm decision on a home loan
Makes you a "cash buyer" in seller's eyes
Give you increased bargaining power
The Financing process
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Financing your home is an involved process. I'll help you through it.
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Loan application is completed and submitted to lender
Lender orders appraisal, credit report, verification of your employment and assets
Lender provides a good faith estimate of closing and related costs, plus initial Truth In Lending disclosures
Lender evaluates application and support documents, approves loan and issues letter of commitment
Closing is held, loan documents are signed and the loan is funded
Lender disburses funds to the settlement or closing agent, seller is paid and title to the home is yours
Required documents are recorded at the County office of records
Applying for a mortgage
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This is the first step after your purchase offer is accepted
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Current pay stubs
Bank statements
Credit card statements
Investment/brokerage firm statements
Loan statements
Tax returns, usually for two years
The lender may request copies of
* Your mortgage application can be processed more easily if you are prepared with these documents