Are you
thinking about buying a home in the Daytona Beach area? Buying a home is an
exciting and complex adventure. It can also be a very time-consuming and
costly one if you're not familiar with all steps of the process, and don't
have all the best information and resources at hand. Here are some helpful
tips that will assist you.
Determine how much you can afford. You can do this by contacting a loan officer who will look at your income, credit rating, monthly expenses, down payment and the current interest rates. If you need a referral, give us a call at (386)307-3085.
<------------ Shop for a home. Ask yourself some of the following questions:
What part of town do you want do you want to live in? What price range would you consider? Do you want an older home or a newer home? What kind of houses are you willing to look at? One story, 2 story, townhouse, condo or a mobile home? How much renovation would you consider?
Apply For Your Mortgage Early
The most important step in the process of becoming a homeowner is the mortgage process. It begins with the timely completion of the loan application. This form documents your personal information, employment information, assets and liabilities. Your lender will assist you in completing this form and all additional disclosures required.
You will also need to supply the lender with all of the supporting documentation. (Bank statements, pay stubs, W2's, etc.) Please understand that the next process cannot begin until you supply this information.
Mortgage Loan Process
Once your loan officer receives all of your documentation, your loan package will go to a loan processor who will then verify and validate all of the information to make sure it is accurate. Also, during this time an appraisal of the property will be conducted to verify that the property value is consistent with the purchase price. This process will take one to two weeks. (This process can be delayed if third parties do not comply with verification requests in a timely fashion)
Mortgage Underwriting
A mortgage underwriter will review your loan package and will make sure
it conforms to the guidelines that are required for the loan product that
you are applying for.
They also
will review the appraisal and title report and may do additional validation
of employment, mortgage payments, and credit. Underwriting has the ultimate
power and decision authority over the approval of your loan. The time
required to do this is determined by the amount of loans in the market. If
the market is flooded, we have seen it take two weeks but under normal
conditions it only takes three to five days.
Mike
and Peggy Linton