Getting A Mortgage: Step by Step

How Do I Shop For A Home?

If you’re looking for a new home, you’ve come to the right place to do so at Mortgage Align.  This is step is about your search for the perfect home.  At this point, you should know what you can afford with our affordability calculator, filled out one of our free consultation forms and received a quote from several possible lenders.

Many first time buyers don’t know the value of a good real estate agent.  First and foremost, real estate agent fees are paid by the seller.  For you, as a home buyer, their services come at no cost.  Additionally, having an experienced third party on your side can make negotiations between you and a seller a lot easier.

Fill out our form below to be matched with a real estate agent in your area who can go to work for you – 100% free!

Getting Pre-Approved For A Mortgage

Once you’ve been matched with a lender, it’s time to get a pre-approval for the loan amount you need.  A pre-approval is simply a commitment from your lender to let you comfortably search within a given loan amount, which is not tied to a specific property.  To be pre-approved, a lender must complete a review of your current financial status (gross monthly income) and debt information.  When approved, the lender has determined your risk and decided that you have the ability to pay back the loan.  Ask your lender for a pre-approval letter and give it to your real estate agent.  This will make potential negotiations between you and the seller a lot easier as they can see that a lender has cleared you for the sell price of the property.

Documents You Will Sign When You Close Your Home Loan

When you close there will be numerous documents that you will need to sign to complete the closing process.  Use your attorney or real estate agent to review these documents before you sign.

• Real Estate Settlement Procedures Act (RESPA) – this document simply informs you about the closing process and the financial obligations for your mortgage
• Truth in Lending Disclosure Statement (TIL) – this document contains the terms and conditions of the loan.
• HUD-1 Form (settlement statement) – this form notes the payments made by all parties in the transaction.
• Mortgage Note – this is your commitment as a buyer to repay the mortgage.  It will include the loan amount, interest rate, payment information, maturity date and the change dates (for adjustable rate mortgages).
• Security Instrument – sometimes referred to as your mortgage or “deed of trust.”
• Warranty Deed – this is the deed that transfers the title from the seller to the buyer.

How Do I Shop For Homeowner’s Insurance?

If you get a loan for a property your lending institution will require you, as mortgage customer, to take out a homeowners insurance policy on your property.  Though your lender will require certain levels of coverage be met on your home, it is always a good idea to consider the value of your possessions in the policy.  It is extremely important that you check with a licensed insurance agent to make sure your new investment has the appropriate coverage. Here at Mortgage Align, we can match you with insurance agents in your area to compare rates for your new policy.

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How Do I Find A Home Inspector?

You can ask friends or business acquaintances to recommend a home inspector they have used.   Also, your real estate agent and broker are familiar with the service and may be able to provide you with a list of names from which to choose.

Whatever your referral source, you can be assured of your home inspector’s commitment to professional standards and business ethics by choosing one who has membership in ASHI.

You can use the Find An Inspector search tool on the American Society of Home Inspectors (ASHI) website for a list of home inspectors in your area who belong to the non-profit professional organization. To have a list mailed to you, call 1-800-743-ASHI (2744).

The American Society of Home Inspectors (ASHI) publishes a Standards of Practice and Code of Ethics that outlines what you should expect to be covered in your home inspection report.

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