If you arent buying an empty plot of land and are buying an existing/new house, follow these steps:
Choosing a Property to Buy:
- Go to zillow.com and create an account on the website.
- Now go the location/pin-code in which you want to buy the house.
- In Zillow's filters set up your preferences for what you are looking for.
- Now shortlist houses from all the houses you see in your search results that have status "Available for Sale".
- Do not shortlist houses that are pending or under contract as they are potentially going to be sold somebody other than you.
- Think of what your budget to buy a house should be and how it compares to what is actually available for sale in the market.
- Decide if you want to wait or continue. Remember; houses you like will not stay available to buy for as long as you might think.
Getting Prequalified:
- Contact lending agents/companies like DCU, Chase, rocketmortgage.com or local lending agents that you might already know Online or by Phone.
- The choice of your lending agent will depend on what interest rates they can offer you based on your credit score and the % of downpayment you are planning on making on your new house.
- Loan Officer/agent will review your income, cash balance, credit score, etc.
- Now get prequalified with the lending agent you prefer by filling out their pre-qualification application.
- It is recommended that you only get prequalified for the same amount as the house you are interested to buy.
- The prequalification amount can be changed anytime later by calling your lending agent if you are not able to buy a/the house you want in your initial prequalification amount.
- The pre-qualification can take anywhere from 1day-1week to fully go through.
Buying a chosen property:
- Call the selling agents for the shortlisted houses and check if the houses are still available.
- For the houses that are available, express your interest in buying the house with them.
- To ensure that your offer for the house goes through, it is recommended that you offer the selling agent the benefit of paying $1000 over whatever best offer they receive from other potential buyers for those houses.
- If the property is a foreclosure; seller will request your best offer and if you win the auction the process will continue.
- The selling agent will need your prequalification documentation and your lending agent's contact info.
- The selling agents will now contact the sellers and share the offers the sellers have received for their houses.
- Once the seller makes a final decision and if you have made the best offer, the seller will contact you to sign a pre-approval contract in 3days.
- After the pre-approval contract is signed, the seller will request ~$1000 in ernest money.
- 30days from receiving the ernest money is when the the seller will need all the financing for the property to be available.
- Contract Received
- Appraisal Ordered
- Appraiser comes on site to appraise house
- If Appraiser sees issues appraiser will request inspection as a condition to provide an appraisal.
- Inspection requested will occur as per appraiser.
- Inspector comes on site to inspect house
- Inspection report received
- Appraisal Received
- Submitted to Underwriting
- Initial Underwriting
- Approval Received
- Closing Disclosure sent out for signature
- Closing Disclosure Signed.
- Final Underwriting
- Approval Received ("CLEAR TO CLOSE")
- Closing Instructions Sent to Title Company
- Approved Settlement
- Statement Received
- Loan Funded!
Check Mortgage rates here:
https://www.bankrate.com/mortgages/
https://www.bankofamerica.com/mortgage/home-mortgage/
https://www.newamericanfunding.com/mortgage-rates/