Purchasing your new home is exciting and is a great investment. When financing a home you’ll need to know what steps are included.
Learn about your loan options and choose the best mortgage for you. Understand affordability, credit scores, loan terms, and be sure to shop around before giving your intent to proceed.
Decide whether or not to work with a real estate professional to help find your new home. Educating yourself about the area and disclosure rules required by law helps prepare you to make an offer.
Putting together an offer with terms and a price exciting. After reviewing your offer, the seller(s) may accept it, reject it or make a counteroffer. If you’re working with a professional, the real estate agent handles all of the negotiations for you.
After your offer is accepted by the seller(s) you’ll be required most times to put down earnest money. This will be credited towards the purchase of your home at time of closing.
When you compare closing companies, look at both cost and customer service. As you’re looking, be sure to ask how the company handled problems and if they have a good reputation. Look for a company with a Better Business Bureau accreditation and one who follows American Land Title Association (ALTA) best practices to ensure a smooth and efficient closing, while protecting your nonpublic personal information such as date of birth and social security number.
One of the biggest changes with the “Know Before You Owe” rule is that you, the consumer, must have a copy of the closing disclosure at least three days prior to your set closing date.
The closing disclosure has now replaced the HUD-1 for most closed-end mortgage transactions. 2015 Closing Disclosure