When buying a home, it is important to be on top of the many details involved in negotiating the deal, finalizing the agreement, reviewing the Disclosure Statement and making sure everything is in line for financing. These processes may be cumbersome, but with the right assistance and guidance, the process can be completed without undo and unnecessary stress.
In order to complete the loan process, the bank or mortgage company will need to establish your ability to pay as well as the appraisal for the home to be sure that the financing fits the situation. Income information, assets owned, and current debt to income ratio, will be
reviewed along with your credit rating before the lender will commit to lending the amount requested for the purchase of the home.
This process is somewhat more complicated when the borrower is attempting to construct a new home. The bank will want to review the plans for the home and be certain that the reputation of the builder or contractor is good. The lender will also want to make sure that all the
necessary permits, surveys and inspections will be in place so that the finished home will be proper security and located correctly upon the property.
Once a commitment is granted by the lender, it is necessary to have all of the title work completed to establish that the transaction is legally binding and that the lender will have a clear and unrestricted lien against the property.
The buyer's attorney or appointed title agent will complete all of the necessary work and ensure that the documentation is correct by providing a letter or certificate of title. In most cases, title insurance will be required by the lender.
Normally, the title search indicates the review of the chain of title, the assurance that the description of the property is correct, a mortgage search, a judgment search, and a check for municipal liens such as garbage, water and sewage and taxes.
Once all these things are completed and reviewed, the closing is scheduled at which time the funds are transferred and the new documents are recorded to memorialize the transaction.
The cooperation of all the parties including the buyer and seller, the realtors, bank officers, appraisers, insurance companies and attorneys is imperative in order to bring the transaction to conclusion. With the good faith efforts of all concerned, the process of purchasing a home need
not be a frustrating experience and should be a wonderfully rewarding one.
No Comments
Leave a comment