Getting Started - What you need to know!
Buying a home is a big step, it's complicated and can be a little overwhelming. One of the most frequent questions we get is "what should I do first?" and "how do I get started?" So here are some tips to keep you in good shape and on the road to your new home!
1.
Complete the Application - Start the process in just 10-15 minutes.
This gives us the big-picture view of your financial profile so we can build see what options are available to you and build a smart mortgage plan around your goals.
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There is no obligation
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No Immediate Hard Credit Pull
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Your data is protected so you won't get spammed
HOW WE HANDLE YOUR CREDIT - WITH YOUR PRIVACY IN MIND
We're committed to protecting your financial well-being - starting with how we handle your credit.
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Step 1: Soft Credit Check - No Impact to Your Score
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When you complete your initial application, we use a soft bureau credit check (1-3bureau). This does not affect your credit score or show as an inquiry. It simply gives us a high level view of your credit so we can start crafting your mortgage strategy - while keeping your data safe from third party solicitations and junk debt collectors.
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Step 2: Protect Your Privacy
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We also give you the opportunity to opt out of credit bureau trigger leads, so you info isn't sold to other organizations or marketers. (See Step 2 below for how to do this.)
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Step 3: Full Approval with Your Consent
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If and when you're ready to move forward, as you contract on your new home, we'll complete a full credit report through the 3 credit repositories (Equifax, Experian, & Transunion). This is required for full loan approval - but at each step we'll explain the process, so you're always in control.
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Soft Credit Pull
2.
Protect your data
When you apply for a mortgage, credit bureaus often sell your data without your permission. Triggering spam from or worse in the form of inaccurate debt collections. But you can opt-out before that happens.
Bonus Tip
Be careful with the online home search sites as well. It's OK to look but if they ask for your contact info most likely it will be sold to multiple real estate, insurance, and mortgage providers. Instead use the link provided by your realtor for more accurate info without the annoying telemarketers. You can also use my search engine to ensure your information isn't sold.
3.
Schedule Your Free Consultation
This is a key step that often get's skipped by most lenders. Buying a home, for most, is the largest and most complex financial transaction they have ever conducted - it deserves a real conversation. Not a "push button, get mortgage" transaction.
Don't get rushed into an option that doesn't fit your financial needs. Let's take the time to craft YOUR plan!
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We'll Cover:
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What loan options work best based on your goals.
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How different rates change your long-term costs.
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Grant programs or incentives you may qualify for.
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" A mortgage isn't one-size-fits-all, Let's build something that fits you, based on your goals."
4.
Upload Your Documents
Uploading docs right away means we can verify income and assets before you're under contract - saving time and stress later.
Our unique pro-active approach can make you eligible for our "Offer Ready Certification", and helping give you an unfair advantage as you search for your dream home. Plus it takes the stress out of the process by knowing you are good to go and fully pre-underwritten for your new home.
5.
Get your Mortgage Report -
You'll receive an initial custom mortgage report before our consultation just you can see all the numbers and ask questions as we dial in your plan. We'll start to customize your options even more after our consultation to:
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Compare different loan options side-by-side
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Graph your equity over time
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Show long-term cost differences
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Help uncover questions you didn't even think to ask
6.
Smarter Home Shopping
Now that you know your budget, your real estate agent can help you target homes that fit comfortably.
Knowing all the numbers in advance, like down payment, tax and insurance costs, payment options etc. let you confidently determine if buying a specific home will comfortably fit your budget.
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As your shopping avoid these mistakes:
-Don't open new credit - Don't move money between accounts - Don't make any large purchases (yet!)
check out The 10 commandments of buying a home!
7.
Know the up-front costs
Buying a home involves a few early expenses - Some from 3rd party services, some from within the process itself. It's important to understand which costs are normal... and which ones are red flags.
COMMON & REASONABLE UPFRONT COSTS
We'll always go over these items with you - and you'll see them clearly reflected in your mortgage report. Any costs to us for our services are never due until closing on your new home and will be clearly reflected and explained well in advance.
Have a question about any of these costs? Just ask. We're here to walk you through it.
If a lender or any party are asking for large, unclear fees up front - be cautions. A few reasonable costs are perfectly standard. Any costs that seem out of the ordinary - reach out to us and we can help you investigate and see if it's ok.
Fee Typical Range Purpose
Credit Report -
Option Fee -
Earnest Money -
Inspection Fee -
Appraisal Fee -
Survey Fee -
Other Fee's (maybe)
$65 - $105
$100 - $500
1-3% of price
$450 - $750
$550 - $750
Varies
Varies
Required to evaluate debt position and payment history for loan approval. Paid directly to credit repository.
Paid to the seller and gives the buyer the right to cancel for any reason in the option period. Normally non-refundable.
A negotiated amount held in escrow, usually by title co. Credited back to the buyer at closing. Shows serious intent to purchase.
Paid to a licensed home inspector for review of condition, safety and functionality of home. Not required by lender but we recommend.
Required by lender (unless PIW received). Confirms the value of the home via comparable homes in the area to ensure collateral value.
Used to confirm the property boundaries. Could be paid by seller or buyer or provided by seller if current survey is eligible. Cost determined by size of the lot and can vary widely. Standard lot typically $600-$750.
Could include items like condo questionnaires, engineering reports, etc., depending on property type, appraisal or inspection requirements.
8.
Everything Else - Undoubtedly other items will come up as well. Did we mention it's a complex transaction? Remember, that's why were here, to answer your questions, look out for your best interests, and help guide you through this home buying journey. If you have any other questions or need assistance just contact us and let us know how we can help you best.