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How to Get a Mortgage: Part 2

July 20, 2024  |  How Buying a New House Is Better for the Environment, How to Choose a Home Builder, How to Get a Mortgage: Part 2, Things To Do

Working with a respected home builder in Chesterfield VA like LifeStyle Home Builders helps make buying and building a new home a positive experience. That said, there are still important steps in the process that can cause stress, particularly the financial aspects such as qualifying for a mortgage. Last month we started an overview of the steps necessary and this month we’ll cover what to do once you find a mortgage lender, such as one of our preferred lenders.

• Once you’ve found a lender, it’s important to get preapproval for your mortgage loan. Your lender will evaluate your financial situation, including your credit score, income, and debt. Preapproval gives you a clear understanding of your budget and strengthens your position as a serious buyer in the eyes of sellers. While this doesn’t guarantee a loan, it gives you a much stronger position in the eyes of sellers. Get preapproval, not prequalification.
• With your preapproval secured, the serious house-hunting begins. Keep your budget, desired features, location, and long-term goals in mind as you explore potential properties. Choosing a new-construction home may make the search easier. Even if you don’t want to build, there are move-in-ready new homes also available. Just be prepared to act quickly when you find your ideal home.
• Once you’ve found your home, it’s time to submit your loan application. This involves providing your lender with detailed information about the property you intend to purchase and your financial status. The application process may require additional documentation, such as pay stubs, tax returns, and bank statements, as well as gift letters if someone is gifting you money for the downpayment. Your lender will use this information to initiate the underwriting process and determine your loan eligibility.
• The underwriting process is where the lender assesses the risk of lending you money. During this period, an underwriter will review your financial documents, credit history, and the property’s appraisal and title reports. This step can take several weeks, and patience is key. While waiting, avoid making any major financial changes, such as opening new credit accounts or making large purchases, as these can impact your loan approval.
• Finally, once your loan is approved, it’s time to close on your new home. The closing process involves signing numerous documents, including the loan agreement, deed, and title transfer. You’ll pay any remaining downpayament, as well as closing costs, which may vary by state, so it’s important to have a clear understanding of the fees. After all paperwork is completed and funds are transferred, you’ll receive the keys to your new home.

By following these steps, you can navigate the homebuying process with confidence, making your dream of homeownership a reality. If you’re thinking of working with a home builder in Chesterfield VA, contact us today to learn about our wide range of outstanding communities and home designs.

This post was written by Lifestyle Homebuilders.