There could be no more exciting news than getting a lender pre-approval for a mortgage to purchase the home of your dreams. A lot of work went into getting this far. And the reality is, there’s still a lot of work ahead once a homebuyer is pre-approved for a loan.
Here are some of the steps homebuyers can expect to take as soon as their mortgage application gets the stamp of pre-approval.
Partner with real estate team
Many homebuyers will reach out to a real estate agent before anything else. Others will take a more methodical approach to buying a home by making the pre-approval their top priority.
Once the applicant is approved, a natural next step is to connect with a trusted and reputable real estate team to get through the next steps.
Narrow home search
The most enjoyable part of any home search is, well, the home search. Homebuyers will dream big and ponder reaching into the limits of their home-buying budget. With a real estate agent at their side, they will be able to narrow their home search and target homes they love but that also fit their budget.
Working with an experienced real estate agent allows homebuyers to zero in on a home with purpose. Real estate agents will offer advice and insights that can help buyers submit a competitive bid.
Submit an offer
In consultation with the real estate team, the time for submitting an offer will be fast approaching. Once the homebuyer finds a home they can’t imagine not living in, they will need to draw up a game plan for submitting a competitive offer with their agent.
Based on the lending program, current market conditions and what other potential buyers might plan on doing, the homebuyer and the real estate team will put together an offer that makes sense and gives the buyer a chance at securing the winning offer.
Sign agreement to purchase home
The purchase agreement is one of the final steps of the home-buying process. It won’t happen until the buyer and seller land on the same page on the financial considerations. Once both parties agree on the sale’s price and other details, they can enter into the purchase agreement contract.
With the agreement in place, there are still a few other steps before the deal is complete.
Complete mortgage underwriting
While the borrower is already approved, the underwriting process cements the loan details and allows the loan to be funded at the appropriate time.
This is the phase in which homebuyers will need to submit follow-up documents for clarification or other purposes.
The underwriting team’s task is to dot every “i” and cross every “t.” Not only will they verify the applicant’s financial submissions, but they will also ensure that there are no legal barriers linked to the for-sale home. The lender will also want to make sure the home’s value aligns with the lending requirements through an appraisal. A home inspection might also be needed as a condition to getting the loan.
Close the deal
Now comes the most exciting part: closing the deal on the home purchase. Homebuyers will receive a final statement on closing costs and will begin the necessary money wiring, too.
While there’s still a lot of paperwork and signatures involved with closing, this phase signals the end of the road and the start of homeownership.
If you have any questions or are ready to get started on your home loan, contact us today!