There are many components/phases involved in a residential sales transaction. We hope that this advice and procedural guidance proves helpful.
Being Prequalified Is Important - BEFORE YOU SHOP. Prequalification accomplishes 4 important tasks:
- Establishes your financial profile - "qualifiable income," "monthly reoccurring debt," and "allowable cash-to-close," - the way the lender interprets it.
- Calculates your maximum sales price, based upon the profile parameters, and/or matches your profile to a specific house to prove qualification capability.
- Displays the proposed payment and all the likely costs involved in the purchase transaction under various loan programs/scenarios.
- Accesses your credit report and analyzes your credit history & score to ensure lender qualification standards are met - See Credit Report Information.
This prequalification process produces the following benefits:
- You will learn which mortgage program/scenario is best for you, at your level of risk, and your own budget.
- You won't waste time looking at houses you canít afford.
- And most importantly, it gives you, your prospective real estate agent, and the seller the confidence that you have the ability to consummate the offer you ultimately put forth.
For a prequalification report, at no cost or obligation, click here to go to the Prequalification page.
Once prequalified, the fun part begins -- "house hunting". Click here to learn more about The Buying Process.
Once you have found that "special" house and you are about to make an offer, pause and give us a call. We should "tweak" your initial prequalification report so that it is specific to that property. For example, the initial report made certain assumptions, say, regarding property taxes. Now that you know the exact property, we should use the exact property taxes. Such small changes could have a bearing on the initial prequalification result. The revised prequalification report is also completed at no cost or obligation and informs the real estate agent and seller that you are indeed a qualified buyer. In many cases, sellers actually require this report along with your tendered offer.
Once you receive your signed, fully-executed agreement of sale, you generally are required to formally apply for the mortgage within 10 days with a lender of your choice. Under violation of federal law, no one can dictate whom to choose for your funding..
Click here to continue to the next phase - Choosing a Mortgage Company.
PA Dep't of Banking
NMLS (Nationwide Mortgage Licensing System)
The Lending Integrity Seal of Approval helps homebuyers find hardworking, ethical mortgage professionals. To earn the Lending Integrity Seal of Approval, professionals undergo a rigorous processcomplete continuing education, pass a criminal background check, and pledge to adhere to a strict code of ethics, best business practices and an ethics grievance review process.