The first step is to get a PreApproval letter. Once that happens you can go shopping for a home and bring back a contract.
The PreApproval process requires the collection of all financial documentation up front and the pull of credit and a mortgage application. This includes the collection of tax returns, pay stubs, W2's, bank statements, and possibly more depending on how much work you do up front there will be less required in underwriting.
5 Things to Know When Shopping for a Home
We will need to pull your credit and take a look at the scores and the history of payments and liabilities.
Monthly debts are calculated called a debt to income ratio so you can qualify for a home you can afford.
We will require pay stubs, tax returns, W2's in order to verify your income as well as a verification of employment.
Assets are your bank statements, 401K, investments accounts, SS income, or any other form of income stream.
Debt to Income Ratio
This is a combination ratio between your income versus your debts and allows you a maximum qualifying amount.
Please contact us and meet us for a free estimate or consultation whether in person or over the phone.
Home Loan Process Fees
This is the minimum down for example FHA requires 3.5% down and Conventional loans are usually 5% down.
Closing costs include title fees, escrows, taxes, insurance and possibly lender fees.
HomeOwner's Insurance is required on homes with financing and are typically collected at closing.
Home inspections & Appraisals
A home inspection is recommended but not required. An appraisal is required and is considered an inspections as well.
Title companies are run by attorneys and handle the deposits to hold the home and the closings on closing day.
A simple rule of thumb is that closing costs will run 2-3% of the sales price.
This is a combination of your down payment and closing costs needed in cashiers check or wire form.
Closings are held at the title company office and they also usually hold the deposits.
If extensions are required a realtor will get involved and get extension paperwork drafted.
Power of Attorney
A POA is available if a spouse or yourself is not available to sign documents and may be provided by the title company.
Two forms of ID are required at closing such as driver's license and social security cards.
Carbon Capital - Driving Mortgages Home
10033 Sawgrass Drive W #118 Ponte Vedra Beach Florida 32082
10151 Deerwood Park Boulevard #250 Jacksonville Florida 32256 Building 200