The Loan Process
The process of buying a home in this day and age can be tedious and exhausting at times; do not be discouraged as most problems can be avoided if you take a proactive approach. The single best aid to achieving a successful transaction is education; that is where Colorado Homes IQ comes in.
There are the general steps that a buyer needs to go through on their way to home ownership:
- Dedicate yourself to commit to the fact that, “YES. I want to be a home owner and I will take the necessary steps to do so”
- Contact an accredited and respected lender. Often times the best option is a local company and instead of a nationwide broker who is located in another state and likely not in touch with the local market.
- Decide on a local lender that you feel comfortable with and go through the application process which will include a Credit Check, also letting them know the following information: work history, yearly income(s), current assets, obligated debts, current housing expense amount, target monthly housing expense, etc. The most important thing when going through this process is to be as thorough and honest as possible, remember your mortgage consultant works FOR YOU not against you and they can be most effective only if they know the entirety of the situation and profile of their client.
- Gather the following documentation, including but not limited to: 2 years W2’s, 2 years Federal Income Tax Returns, most recent 30 days paystubs, most recent 60 days bank account statement(s) and provide them to your mortgage consultant for preliminary review.
- Obtain a pre-approval for the purchase price that you can qualify for and also that you are comfortable with.
- At this point you will also want to select a well-qualified and Colorado Homes IQ endorsed, real estate agent that can assist and serve your every need in selecting a house that meets your criteria.
- Look for houses that fit your criteria. Colorado Homes IQ is an excellent source to search homes and find out everything you need to know about prospective houses and areas to live in. CHIQ.com coupled with your Realtor will be ALL you need to find the home of your dreams or that hidden gem that you can make your own.
- Discuss the houses you like with your Realtor and submit an offer.
- Once you agree on terms of the contract with the seller and the contract is fully executed your loan will be submitted to the underwriting process.
- You will next want to obtain a home inspection; this is for your own peace of mind to see everything there is to know about your future home. Your Realtor or mortgage professional will be able to refer you to a reliable and well respected, licensed home inspector.
- During the loan process your file will be underwritten, an appraisal will be obtained to make sure the value is sufficient and you will go through the loan approval process by supplying any additional documentation that the underwriter needs to satisfy all conditions of obtaining the final approval on the loan.
- After your loan has final approval, you are now ready to close on your new house and enjoy the benefits of owning your own home!
Looking for information about buying Colorado real estate? ColoradoHomesIQ.com specializes in the Colorado Real Estate Market and we're here to help. Contact us today for a free consultation on your real estate needs.