If you chose to work with two local professionals, Heath and Tom, they will make the home buying and loan process go so smoothly. Here is what will happen:
First, getting prequalified with Tom is a simple task that lets you know exactly what price range to seriously look at in your new home search.
Second, you get to begin your home search with Heath while Tom works on getting you preapproved. A preapproval letter gives you the upper edge when it comes to multiple offers on the same home. It gives you such an advantage over another buyer who hasn't been preapproved. The preapproval letter also lets the seller and their agent know you are capable and able to to purchase the home without any foreseeable hiccups. If your offer is one of a few, your preapproval letter gives you strength in the negotiating.
Third, when you find the home that you love, you and Heath get to put in an offer, negotiate, and eventually sign a contract. You are now 'Under Contract' and it is an exciting time.
Fourth, an inspection of the home will be ordered and completed. If there is anything in the home that needs to be repaired or if there is any structural damage, this is now addressed. There is a magic period of time during the 'Under Contract' time frame called DUE DILIGENCE. The due diligence process allows you to do your research on the home and property. During this time, the inspection is completed and you get to research anything and everything about the home to make sure it is exactly what you want and all of the property is in order. If there are repairs to be made, Heath and the seller's agent will work out who will take care of the needed repairs. The due diligence period protects you because if there are concerns, you can renegotiate your offer or completely withdraw your offer without penalty. A final walk through will be completed by you and Heath to make sure all agreed upon terms have been met.
Fifth, a loan application will be completed. Tom will help you figure out which loan is the best fit for you.
Sixth, an appraisal on the property will be arranged by Tom. An appraisal lets you and Tom know if you are paying a fair price for your home. If the appraisal comes back lower than your current offer price, negotiations will resume with the seller and usually the price of the home will be lowered. That means Heath will be able to get a better home price for you.
Seventh, processing and underwriting your loan takes time. Tom takes care of all of this while you get to start packing.
Eighth, a closing disclosure will be sent to you from Tom that sums up your loan.
Ninth, the disclosure leads to your final loan approval. Tom and Heath have been busy taking care of necessary paperwork and making arrangements with the title company to finish up your loan.
Tenth, signing your loan documents and closing your home purchase is the last part of the process that gets you into your new home. Heath will attend the closing with you and make sure everything is in order. It usually takes a few days for your loan to fund and the paperwork to be recorded. Once the seller receives their payment, the home is yours and you get to move in.
