Below are explanations of how the process works.
Question: What materials will a lender need from you and why?
Answer: A lender needs information to evaluate your financial situation and ability to handle mortgage payments, as well to verify the value of the home you want to buy. You'll be asked to provide documents like W-2 statements and federal tax returns, recent paycheck stubs, bank and investment account statements and similar materials.
Our document checklist outlines the back-up documents required for most mortgages. I will advise you if your situation requires more or slightly different information. Make a copy of each document for Greg Phillips; keep the originals in case a question comes up when processing your application or you need these documents for other important purposes.
Question: Do you really need an attorney? How can you find one?
Answer: Buying a home is one of the largest financial decisions you'll ever make. It's also a process that includes contracts and other documents with which you may not likely be familiar. So it's a good idea to have an attorney on your team. Ask family, friends and co-workers who own homes for the names of attorneys they felt did a good job on their mortgage transactions. Your real estate agent may also be able to recommend experienced attorneys.
Question: There are so many people involved in buying a home and getting a mortgage. Who should you call with what questions?
Answer: A lot of different people help you buy your first home. See this chart for a guide to who does what and who to call with various questions.
Question: What happens after you actually apply for a loan?
Answer: Once you've provided the required information and made a formal application, you can relax while Greg Phillips swings into action. Here's what takes place.
Question: What will happen at closing?
Answer: The closing (sometimes called "settlement") is the final step in buying a new home. It's when the ownership of your new home is legally transferred from the seller to you. A few days before closing, I will provide a "RESPA" statement detailing final costs, as well as copies of the paperwork, and will review them with you. Now's the time to ask all your questions. I'll also tell you the exact amount of closing costs. You'll need to get a certified or cashier's check for this amount because personal checks are not accepted.
The closing usually takes place at a title or escrow company. All interested parties generally attend, including you, the seller, your respective attorneys, your real estate agents, the settlement agent and sometimes the lender. You'll review and sign loan documents, transfer ownership deeds, present evidence of insurance and any required certifications, and submit your certified or cashier's check for final costs. Then you'll receive the keys to your new home. CONGRATULATIONS – you're a homeowner!
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