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5 HOME BUYING MYTHS

There are a lot of myths about buying a home that are easy to bust.
Here are a few of the big ones:

I need a 20% down payment. This goes back to the days when lenders had far fewer options. Now, you can get a mortgage for much less money down.

I have to dig up a lot of paperwork. A lot goes into qualifying you for a mortgage, but these days much of the verification process — like collecting pay stubs, bank statements and tax information — can be done automatically by your mortgage broker and lender.

It will take a lot of time. A good mortgage broker can take your application and give you a pre-approval letter in minutes. Many even let you do it yourself online.

My bank is the best place to get a mortgage. Banks don’t offer many mortgage choices. An independent mortgage broker in your local community can help you find the best options and the lowest rates.

I need to be “settled down” first. Even with a low down payment, monthly mortgage payments are often lower than rent prices. Plus when you buy a home, you’re paying yourself, not your landlord.

WHAT TO EXPECT DURING THE LOAN PROCESS

The mortgage process is pretty straightforward, but knowing what to expect will help everything go smoothly.

STEP 1: ELECTRONIC LOAN APPLICATION AND DOCUMENT PACKAGE

  • You’ll receive a secure link to E-sign your documents, saving you valuable time.
  • A Loan Estimate is included in this package. This is an itemized list of the fees that you may be charged for your home loan transaction.

STEP 2: Loan Approval

  • Once your loan application is reviewed, you may be asked for additional documentation.
  • Return the requested documentation as quickly as possible.

STEP 3: Appraisal

  • A licensed appraiser will need to inspect the property and determine a value. (If your loan application receives a Property Inspection Waiver, no appraisal will be needed.)
  • The appraisal cost is typically paid prior to the inspection.

STEP 4: CLOSING DISCLOSURE

  • This is the final list of fees that you will be charged for your loan.
  • You will receive this document at least three days prior to your closing.

STEP 5: VERBAL VERIFICATION OF EMPLOYMENT

  • A call will be placed to your employer; it’s important they respond promptly.

STEP 6: FINAL CLOSING

  • When your loan is fully approved, your employment has been verified, and you are ready to close on your home, we will schedule a convenient time to sign the final documentation.