There are several major steps in the real estate purchase process, and several relate to the mortgage. It can be confusing for both new and repeat home buyers. This blog details basic details about financing process for buying Staten Island NY homes and includes what you should know before initiating the process.
Financing Process For Buying Staten Island NY Homes
The Pre-approval
A pre-approval is a preliminary analysis of your finances and credit history to estimate what you may be able to obtain for a loan. It verifies that you meet the preliminary requirements for financing. Pre-approvals do not guarantee that you will ultimately receive financing, but is a typical first step in the mortgage process.
Formal Application
An application takes place typically after you have an accepted offer on a property. You may be required to furnish additional financial paperwork and information. The specifics on the property are also reviewed by the mortgage company. They will require a copy of the Purchase and Sales contract in order to continue. Your contract will usually specify that you submit an application within a specified period of time.
Home Appraisal
An appraisal is mandated by a mortgage company (although you are often billed the fee for it) to determine the current market value of the property. Appraisers will compare your property to others that recently sold in the area within a specific time period. An exact dollar amount is generated. Essentially, the value of the home must justify the amount that the bank is loaning to you.
Mortgage Commitment
After your personal information and the details on the property are reviewed, the mortgage company issues a commitment letter. This assures the parties that no major problems are present and that the mortgage company is fairly sure that the loan will receive full approval. There will be outstanding conditions included in the letter such as an employment verification and final credit check. It is therefore important not to complete major purchases or change your financial condition even after a commitment is issued as it may lead to a fall thru.
Clear to Close
A clear to close is basically the final approval for financing. It verifies that all requirements have been satisfied and that the mortgage company will submit the information to the closing agent. This may take place just days or hours before the anticipated closing date.
Settlement
The settlement entails signing of documentation and filing of documents into public record. Be sure to bring official identification and a money order or certified check for any monies due. Personal checks or cash are generally not acceptable. The exchange of funds occurs at or shortly after and the real estate will be officially yours!
Some Additional Advice
Deadlines are an important factor of any real estate transaction, so make sure that you know the deadlines and what you must complete to satisfy each condition. Working with a experienced mortgage consultant and real estate broker is very important. They can offer guidance and assistance, monitor deadlines, and ensure a less stressful experience. As a local real estate agent, I can provide guidance on the mortgage and overall real estate process. You may reach me, Gregory Diaz and Gina Guerriero, at S.I. Premiere Properties via phone at 718-408-1499 or email at gregdsells@aol.com.
