Friday, March 4, 2016
A Home Buyer's To-Do List to ensure a smooth closing!
Written by: Jodi Toebe, RE/MAX Realty Center
Home Buyer To-Do List
1. Get pre-approved by a lender. Ask your Realtor for suggestions. Not all Lenders are the same and they can direct you to a lender that will offer you the best loan program for your needs and ensure your loan process goes smoothly.
2. Lender will need the following items, have them prepared ahead of time. (Do not give them in piece mail!)
· *Last 2 Years 1040’s and W2’s
· *Last 2 Check stubs
· *Proof of assets via last 2 statements. All pages, even if blank. So, if your statement says 1 of 6 pages you need all 6 pages.
· *If applies, Award letters for social security income and/or pension
· *If applies, VA loans Certificate of Eligibility and DD 214 form . Go to: http://www.benefits.va.gov/homeloans/purchaseco_certificate.asp
3. Have Lender send your Pre-approval letter directly to your Realtor prior to looking at homes. Communication between lender and realtor is vital and especially important prior to writing an offer. Some homes you may select may not qualify for a loan based on condition of property. Your Realtor will guide you.
4. Once you have an accepted offer: (Your Realtor will Guide you through this next step based on your contract.) Be Prepared to:
· Submit earnest money check (this gets deposited usually within 3-5 days from accepted offer.)
· Schedule home inspection, usually within 10-15 days of excepted offer. Your Realtor is an excellent resource for suggesting a good qualified inspector.
· Submit contract and proper documents to your Lender. (i.e. OTP, MLS Listing and tax info.) A good realtor will do this for you.
· Once your Lender has all the appropriate paperwork and signed documents they will start processing your loan. It’s important you are diligent and do this promptly. Time is of the essence.
IMPORTANT: DURING THIS TIME, DO NOT OPEN NEW CREDIT, MAKE ANY BIG PURCHASES, OR GO 30 DAYS+ LATE ON ANY ACCOUNTS!
5. Appraisal to be ordered through Lender, this will be an immediate cost to you of approx. $450-$650.
6. Out of pocket costs to be prepared for! Even though you may have a 100% financing you still have some out of pocket costs. Meaning, you need to have available cash to pay for:
Earnest Money= whatever you state in OTP
Home Inspection= $400 (approx.)
Radon Test= $125(approx.)
Homeowners insurance= 1 yr premium $475-$750(approx.)
7. Lender will send your Realtor copy of appraisal in order to satisfy the appraisal contingency in OTP.
8. Lender will send Realtor Loan Commitment Letter by deadline in OTP.
9. Once loan is approved closing is scheduled. You will get keys and ownership at Closing!! Congratulations!
10. During the loan processing time you should get prepared to move. Aside from the many things your lender will ask for and need, you will also need to remember to call or mark arrangements for…
· Wisconsin Electric
· Schools/ daycare
· Utility company for your area if different from WE Energies
· Forward Mail and change of address
· Doctors/Pediatrician in area
Buying your new home should be exciting and not stressful. A big part of that is being prepared and knowing the process and what is expected. A good Realtor will guide you through this process, every step of the way!
Looking for a good Realtor that will help you through the process? Call Jodi Toebe, RE/MAX Realty Center 262-352-0484!