The Steps to Close on a New Home
Posted by : Admin
When someone finally finds the right house, it is time to close on the home. Unfortunately, this process is not as easy as checking out at the grocery store. It’s even different from buying a car. There are steps that people need to follow when it comes to closing on a new home.
Step 1: Find the Right Lender
The first step in closing on a home is to find the right lender. Very few people have the cash to buy a home outright, so it is time to find someone who can provide assistance.
There are multiple options for lenders, ranging from the typical brick-and-mortar lender to those who give out loans online. There are even bad-credit home-loan lenders who can help everyone purchase the home of their dreams.
Take the time to find the right lender. Some of the factors that people need to consider include the presence of origination fees, the possible requirement of PMI, and even the interest rate itself.
Make sure to find someone who has good communication skills. This is someone who is going to be there with the buyer from start to finish during this process.
Step 2: Examine the Finances
When someone finds the right lender, the next step is to fill out a mortgage application. People’s finances are going to come under scrutiny during this process. The lender is going to take a look at the credit score and the debt-to-income ratio.
The goal is to assess whether the individual applying for the loan is of adequate risk to the lender. This is where someone looking for bad-credit home loans might run into some problems. Fortunately, there are lenders out there who are willing to work with bad-credit loans.
There are even ways that people can improve their credit score prior to applying for a home loan. Since many lenders have cutoffs for debt-to-income ratios, it might be helpful to improve this ratio prior to applying for a home loan.
Step 3: Make an Offer
Once someone has secured a loan, the next step is to make an offer on the home. The appraisal on the home is going to play a role in what someone can offer.
Typically, the appraisal is going to come in somewhere around the list price. Then, the seller and the buyer will go back and forth until they meet somewhere in the middle.
Of course, there might be multiple offers on the table and each party might be willing to offer a little something extra to sweeten the pot. Once the buyer and the seller agree on an amount, the next step is to sign the closing papers. This often requires the help of an attorney.
Assistance with Bad-Credit Home Loans
Not everyone has perfect credit, but everyone deserves the opportunity to bid for a home. At Mortgage Investors Group, we are here to help people with bad credit find great homes. As bad-credit home-loan lenders, we are here to help you. Call us today to learn more!
