Understanding The Mortgage Process

Step 1: Start Early

The first thing that you need to do when you have decided to purchase a home is determining the negotiables and non-negotiables involving where you will reside and start your research. What do you want in the house? Where do you want to live? Most importantly, what is your budget and can you afford a house? After you figure out the necessities your new home needs to make you happy, start your research. Subscribe to newsletters, read magazines and newspapers with real estate listings, and research websites that have listings as well. Note how long homes that interest you stay on the market in the area you’re moving to, price, and size that you can afford in the area. Also, be sure to watch changes in price over time.

Step 2: Get Preapproval

It’s always a good idea to get pre-approved for a mortgage if you can. You may have a basic idea of how much you believe you’ll be able to spend on a home, but until you get prequalified or approved for a mortgage, you won’t know for sure. To get pre-approved, meet with your mortgage loan officer. They’ll tell you the price range of homes you should be looking at.

Step 3: Find Your Dream Home

Once you get preapproved for a mortgage, you need to find your home. Find a real estate agent that you can trust, who is easy to communicate with, and who goes above and beyond to provide you with insight about properties you are interested in, as well as the areas that these properties are located in. Tour the homes, take notes, take pictures and videos, and be as transparent with your likes and dislikes as possible with your agent!

When you find your home, have your real estate agent negotiate an offer that is fair based on the location, size, and value of comparable houses. When you reach an agreement with the seller, the home goes into escrow.

Be sure to get a home inspection within a few days of your agreement to make sure that everything is A-OK with your home, and to make sure that any issues found can be dealt with through renegotiation, withdrawal without penalty, or understanding what else needs to be done. If there are issues with the home that you want to discuss with the seller, know your options! Ask the seller to fix issues before closing the sale.

Step 4: Find An Amazing Loan Officer

You’ve settled on “The One.” Congrats! The next thing you need to do is find a loan officer that will help you navigate the waters of financing your home through an NC housing loan. A loan officer should be many things, especially transparent, passionate, and accountable on top of other traits. Be sure that you choose a great loan officer, and that you discuss any eligibility you may have for special types of loans like (VA Loans, Jumbo Loans, etc.). You will also need to discuss whether a 15-year or 30-year mortgage works best for you. Once you and your loan officer find a payment plan that best suits your needs, they will arrange for an appraiser to ensure that you will pay a fair price for the home.

Following an appraisal, the paperwork begins. Your loan officer will coordinate everything and ensure that all rules, ordinances, and laws are met with your home purchase. Once this step is complete, you can close the sale and enjoy your new home!

Alpha Mortgage is a full-service mortgage company offering in-house processing, underwriting, closing, and funding. In addition to new purchase loans, Alpha Mortgage specializes in home refinances with various programs and the lowest rates. Our mortgage professionals are well-versed in all aspects of how the refinance process flows and can look at your previous loan package and find the best way to make your new mortgage work best for your financial goals.