There are many distinct steps in the real estate purchase process, and many relate to the mortgage. It may be complicated for both new and repeat buyers. This blog provides basic information about financing steps for buying Waltham MA properties and includes what you may want to know before starting the process.
Financing Steps For Buying Waltham MA Properties
A pre-approval is an introductory analysis of your finances and credit history to determine what you may be able to obtain for a loan. It verifies that you meet the preliminary criteria for a mortgage. Pre-approvals are not a guarantee that you will be able to obtain a loan, but is a usual first step in the mortgage process.
An application takes place typically after you have an agreement to purchase a property. You may be asked for additional financial paperwork and information. The specifics on the property are also submitted to the mortgage company for review. They will require a copy of the Purchase and Sales agreement in order to continue. Your contract will often require that you complete an application within a specified period of time.
An appraisal is mandated by a mortgage company (although you are typically carry the burden for the cost) to pinpoint the current market value of the real estate. Appraisers will compare your property to others that recently closed in the area within the last several months. An exact dollar value is generated. Essentially, the value of the property must justify the amount that the bank is loaning to you.
After your financial information and the property details are analyzed, the mortgage company issues a commitment letter. This assures the parties that no major issues are present and that the mortgage company is fairly certain that the loan will receive full approval. There can be certain conditions noted in the letter such as an employment verification and final credit check. Therefore, it is crucial not to complete costly purchases or alter your financial situation even after a commitment is issued as it may cause a loan to fall thru.
Clear to Close
A clear to close is essentially the final approval of a loan. It affirms that all criteria have been completed and that the lender will send the information to the closing agent. This may occur within days or hours before the scheduled closing date.
The settlement entails signing of paperwork and filing of documents into public record. Be sure to bring acceptable identification and a money order or bank check for any funds due. Personal checks or cash are traditionally not acceptable. The exchange of funds occurs at or shortly after and the real estate becomes officially yours!
Some Additional Advice
Deadlines are an important part of any real estate transfer, so make sure that you know the deadlines and what you must complete to comply with each one. Working with a diligent mortgage consultant and real estate professional will be a big help. They can offer guidance and assistance, monitor deadlines, and ensure a less stressful experience. As a local real estate broker, we can offer guidance on the mortgage and overall home purchase process. You may reach us, Bradford Pratt and Darleen Foster at REMAX on the Charles.