I recommend that all my buyers become pre-qualified before beginning your property search. Not only does this enable you to know what you can comfortably afford to spend on a property and eliminates the desire to view homes that are beyond your means, but it also signals to the seller and his/her agent that you are serious about moving forward.
Funding Your Property Purchase
- Identify your lending institution that offers you the best rate and terms
- Pre-Approval
- Application and interview
- Buyer provides all necessary documentation including employment verification and available funds
- Credit report is requested
- Appraisal scheduled for currently owned property if applicable
- Lock in rate (Many lenders allow the buyer to lock in the rate for a defined period of time.)
- Underwriting
- Loan package is submitted to underwriter for approval
- Loan Approval
- Parties are notified of approval
- Loan documents are completed and sent to Title
- Title Company
- Title exam, insurance, and title survey conducted
- Borrowers return for final signatures
- Funding
- Lender reviews loan package
- Funds are transferred by wire
- Documentation brought to closing