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7
The Homebuyer’s Guide to Getting a Mortgage
Making the decision to buy a home in Central Ohio doesn't have to be daunting or intimidating. With a little understanding of how the mortgage process works, you'll be a proud bellefontaine homeowner in no time.
A pre-check of your finances is highly suggested to give you a starting point. Knowing what you can realistically afford, even in the case of a financial emergency, can save you heartache down the road. You don't want to bite off a mortgage that is bigger than you can chew. Knowing your limits will also narrow your property searches down and help you stay on target. Online calculators are available to help you determine affordability:
(estimates an affordable purchase price based on your income and available down payment)
(estimates monthly mortgage payment based on purchase price, insurance, and tax rates)
Now that you have an idea of what you can afford, it's time to start the mortgage process by speaking with a lender. Getting your home loan underway will result in you having qualifying documentation when you reach out to a realtor and start looking at actual homes—and should you find "the one," it'll be great to have no delays in closing the deal because of bank issues.
Information you will be asked to provide to the lender (with documentation):
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Personal — Date of birth, marital status, number of children and their ages, and social security number (to pull your credit report).
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Last Two Years (minimum) of Residential History — Rental or mortgage, insurance, and tax figures.
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Proof of Employment and Income — Wages, bonuses, or commissions and employment history for at least two years back. Be prepared to show completed tax returns. Mortgage lenders will average variable and self-employed income over two years.
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Assets — Even if your down payment comes from one account, ALL checking, savings, investments, and retirement accounts will have to be recorded and verified. Keep in mind that if you're fortunate enough to have funds being gifted to you, there are special rules which apply. Speak to your lender.
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Debts — Full disclosure of payments and balances owed on all credit cards, student loans, auto loans, existing mortgages, and any alimony or child support requirements.
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Identify your preferred loan type and available down payment.
With this information your lender will be able to create a personal profile and recommend loans commensurate with your individual budget. Everyone is different and therefore multiple loan and rate tiers exist. Your lender will be like your personal guidance counselor as you go through this process. Your existence is at their disposal, on paper at least, and so they can use their expertise to suggest what will likely be the best path for you to follow. Whether it be a short term investment property with plans to turn around and sell, or settling in with a 30 year mortgage on a family home.
Our Choice Properites Real Estate agents are knowledgeable and willing to meet with you and your lender so that the fun part can start . . . home shopping! In the crazy days that will come in the whirlwind process of home buying you can expect the following to happen:
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Upon finding "the one," your agent will write up an offer of what you're willing to pay for the property and present it to the seller; if accepted, then your loan process will move to the final approval phase.
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Your lender will lock the interest rate on your loan (this can't be done without an acceptance as it is determinate upon buyer/seller price agreement).
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Depending how much time has elapsed since financials were initially gathered and verified, your lender may request updated documentation from you; your lender will also order an appraisal on the property and review the property title report at this stage.
When all I's are dotted and T's are crossed, the final loan documents will be drawn up and your closing will be scheduled. Once the papers are signed and the loan is funded, the keys will be placed in your hand.
Congratulations and enjoy your new Logan County home!