Join New American Funding in this quick but informative tour of the homebuying process. After breezing your way through this fun, five-step walk-through, you’ll be well on your way to becoming a homeowner.
Thinking about buying a home? It’s one of the most important, life-changing purchases you can make – but most people don’t understand the home buying process.
Let’s take a look in 5 easy steps. Purchasing a home can be a smooth and easy process. A big part of what makes that process go smoothly or not, is choosing the right lender for your home loan.
The First Step is the Preapproval or Prequalification Process. This step helps answer many of the questions you might have like how much do I qualify for or what are my monthly payments?
Typical Process is a Prequalification letter. This means a Loan Officer uses income and expense figures to estimate a loan qualification amount. The lender then provides a letter for you to present to a Real Estate Agent during the home shopping process. New American Funding prefers to provide a Preapproval certification. This means all of the information you supplied has been verified and validated by an underwriter.
Why does this matter to you?Well, you’ll learn what you can afford so you don’t waste time looking at homes out of your range or below what you can afford. It reduces the likelihood of unexpected loan application rejection later in the process. But most importantly, it demonstrates that you’re a serious home buyer. Real Estate Agents will be more inclined to work with you, and sellers will be more likely to negotiate since you already have an underwritten preapproval.
The next step is to submit a Formal Loan Application.
At this time yourself or a Real Estate Agent makes an offer by submitting a purchase contract and providing a deposit. A formal loan application includes:
Proof of earnings, assets and expenses If you are going through a typical process with a prequal letter you would start providing this information at this time. However, at New American Funding since a portion of this process is completed in the preapproval phase, you have an easier and faster process so the next phase, loan processing, can happen right away.
And now it’s time for Loan Processing.
If you had a pre-qual letter, the lender would now:
Carefully review and verify all the information and documents you provided. Order a professional inspection of the home. Also if there are areas that need clarification then you would be ask to provide more information. Sounds like a lot of work right? Well at New American Funding this phase already began with preapproval, so we can move on to the next step.
The 4th step is Loan Underwriting.Once the loan reaches the underwriting department the loan rate then gets “locked” in. The loan underwriter either approves, suspends, or denies the loan at the end of the underwriting process.
At New American Funding we have in-house underwriters with 24-48hr* average underwriting turnaround times.
Why is that important? In the current market homes are selling fast.
So the quick underwriting process at New American Funding gives you an advantage over other buyers.
Last but not least its closing time. At this time, the final loan documents are prepared, and you would review and sign them. A final property inspection takes place and the loan funds get wired to the escrow company. Once the loan funding clears and the title company records the purchase with the local court, the home sale is considered complete and closed.
That was really fast right?
As a home buyer in today’s market you need as much ammunition as possible. New American Funding has industry leading close times with an average of 14 days. Work with a company that works hard to help you become a homeowner.