Buying Home First Time
Congratulations on your way to buying your first home! To make your journey smooth and hastle free, do take care of a few things mentioned below.
This is the first and foremost thing that you need to do before you start reaching the real estate agent’s door. Having pre-approved doesn’t guarantee you the mortgage but it is a step big enough to make your home purchase quick. Even your agent’s first question will be the same. Seller take those buyers seriously who are pre-approved.
Your search will be filtered with pre-defined budget and you will not waste your time on homes which are beyond your pre-approved budget.
Do's & Don'ts after making an offer
Do not open any new credit card lines until your loan has closed and funded
Lenders now employ tracking systems that notify them when new credit accounts are opened.
New accounts can impact your Debt-Ratio/Qualification.
Understnd the Importance of your Mortgage Commitment Date
In your contract, your mortgage commitment date specifies the date that your financing needs to be approved by.
After this date, your deposit may become non-refundable.
Liquidation of Funds Needed For Closing
Pay particular attention to conditions that require you to liquidate funds from Retirement, brokerage accounts etc.
Underwriters need to track and approve the liquidation prior to issuing final approval on your loan.
If this step is put off too long it could delay your clear-to-close.