The real estate market is a fast-paced, ever-evolving industry. Once you’ve settled on your dream rural home or land, the fun has just begun. Our lending experts will walk you through buying, financing and closing on your home and be there every step of the way. Below are eight tips to help you through the mortgage process.
Things that will help you prepare for the mortgage process:
Do your best to pay bills and debt on time and have a disciplined saving pattern. This will set you up to be a successful homeowner and positively impact your credit and the interest rate on your loan.
Keep an eye on your credit inquiries and try to be conservative when making them. As you seek to secure home financing, carefully consider major purchases that need to be financed. These inquiries occur when financing anything from a new vehicle to the appliance package or furniture for your new home. Credit pulls can impact your overall credit score. If you need to make a credit inquiry but aren’t sure the time is right, ask your Rural 1st Loan Officer.
Lastly, get pre-approved for your loan. This will help reduce obstacles with getting financing and give you the ability to act quickly in a changing market. When you are pre-approved, you can:
Make an offer with confidence.
Save time by only looking at homes you can afford.
Negotiate a better price for the home you want to buy.
Things you should consider doing during the mortgage process:
Be aware of upcoming large purchases. These expenses will reduce the money you have available for your down payment and may require you to take out another loan. Additional purchases may add to your monthly expenses and make qualifying for the financing you want difficult.
Loan transactions are time-consuming and will have you reviewing many legal documents that require your full attention. Be sure to clear your calendar so you won’t have to worry about anything except reviewing the documents. Many borrowers underestimate the time it takes to access their own financial paperwork because of lost passwords, documents in storage, etc.
Review any loan documents you receive in advance. This way, there are no surprises and you can identify possible typos or errors and prepare for closing.
The closing disclosure is an important document that should be received three days prior to closing and lists the final charges relevant to you and the seller based on the terms of your contract. Make sure to compare to your original loan listing and confirm the rate and terms are what you expected and agreed on—otherwise, you will need to get them corrected. Your disclosure will include the amount you will need to bring to your closing.
Be prepared to pay your closing costs. Always ask your closing agent which method of payment is accepted. Cashier’s checks and wire transfers are common methods of payment but may vary based on the title company used. Some title companies will only accept wire transfers depending on the amount. Cash and personal checks are usually never accepted. Closing costs include fees, taxes, charges and the down payment. Make sure the home is ready to live in. If the other party promised to make repairs, ensure they’ve been made.
Navigating the mortgage process can be intimidating, but we’re here to help make it a seamless experience. For additional guidance on the process or to get started, reach out to our team.