Mortgage Loan Options

If you’re thinking about buying a house, you need to think about your credit history. Lenders are looking to see how well you’ve handled your obligations in the past.

The good news is this information is available to you through the credit reporting agencies. You can obtain a copy of your credit report from all three agencies. Check our resources tab for more information on how to access your free credit report.

It’s a good idea to check your credit and try to repair any issues before you try to purchase a home. The good news is, regardless of how many credit problems you’ve had in the past, you can still recover by working to clear up those issues.

Loan Pre-Qualifications – Now that you have addressed any issues on your credit, it is time to get pre-qualified for a loan. Realtors suggest that you go through this process before searching for homes to save time and find the right home in your price range.

Pre-qualification is an initial evaluation of the creditworthiness of a potential borrower that is used to determine the estimated amount that a person can afford to purchase. Based on the information given, you could be provided a pre-qualification letter with your borrowing power.

This letter will let you and the realtor know what price range you may qualify for when searching for the right home. Click the Apply Now button above to start the pre-qualification process with RRCU.

Realtors provide a wealth of knowledge when it comes to finding the right home for you. In the maze of forms, financing, inspections, marketing, pricing, and negotiating, it makes sense to work with professionals who know the community and much more.

Working with a realtor will give you updated information on properties available in the area you want to purchase. Realtors can also keep you updated and alert to each step in the transaction process, once you choose the home that is right for you.

In addition, your real estate agent can guide you through the closing process and make sure everything flows together smoothly.

Now that you have been pre-qualified, it is time to look at homes. It is important to target your search and focus on homes that offer the most desirable features in your price range. Choosing a home is an enormous decision. It is important to do your homework and find the home that is right for you.

Remember, you are likely to be living there for several years, and you want to be in comfortable surroundings in a home you can afford.

When trying to find the home that is right for you and your family, consider the following factors:

• How far is the commute from the house to your work?
• In what type of neighborhood would you like to live?
• Check out the school systems in the area if you have children or want to start a family.
• How much are the average property taxes in the area you are looking to purchase?

Closing costs are fees charged for services that must be performed to process and close your loan. There are several different types of fees associated with the purchase of your home. Many of these costs go to a third party that is necessary to process your loan, and the lender typically has no control over these fees.

Normally the buyer and the seller both pay for closing costs, although you can negotiate and ask the seller to pay a portion of these costs. Your loan originator can better explain these fees in detail.

Appraisal – The appraisal is required to determine the fair market value of the home. An independent professional real estate appraiser arrives at this value. The lender must receive the appraisal to ensure the mortgage loan is not greater than the value of the property.

Title Company – Closing Fee/Title Search/Exam Fee. These fees are paid to a title company for conducting the closing. The title company also has a fee for research to ensure there are no liens or issues with ownership of the property.

Survey Fee – Lenders also require a survey to reflect boundary lines and to ensure your property does not have encroachments on the lot.

Flood Determination / Life of Loan Coverage – Flood determination will let the lender know if your property is located within a flood zone. If the property is located in a flood zone or an area prone to flooding, you will have to purchase flood insurance.

Title Insurance – Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances, or defects in the title to the property.

Homeowners Insurance – Homeowners insurance is required by your lender to cover possible damages to your home. Your first year of homeowners’ insurance is collected at closing.

Closing costs are fees charged for services that must be performed to process and close your loan. There are several different types of fees associated with the purchase of your home. Many of these costs go to a third party that is necessary to process your loan, and the lender typically has no control over these fees.

Normally the buyer and the seller both pay for closing costs, although you can negotiate and ask the seller to pay a portion of these costs. Your loan originator can better explain these fees in detail.

Appraisal – The appraisal is required to determine the fair market value of the home. An independent professional real estate appraiser arrives at this value. The lender must receive the appraisal to ensure the mortgage loan is not greater than the value of the property.

Title Company – Closing Fee/Title Search/Exam Fee. These fees are paid to a title company for conducting the closing. The title company also has a fee for research to ensure there are no liens or issues with ownership of the property.

Survey Fee – Lenders also require a survey to reflect boundary lines and to ensure your property does not have encroachments on the lot.

Flood Determination / Life of Loan Coverage – Flood determination will let the lender know if your property is located within a flood zone. If the property is located in a flood zone or an area prone to flooding, you will have to purchase flood insurance.

Title Insurance – Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances, or defects in the title to the property.

Homeowners Insurance – Homeowners insurance is required by your lender to cover possible damages to your home. Your first year of homeowners’ insurance is collected at closing.

Once your lender has approved your loan, then processed and received all of the necessary documents associated with the loan, you are ready to close. This process may take up to 45 days. Closing is the brief settlement process where you, as the buyer, will sign the necessary paperwork to complete the transaction of your loan. Closing will be held at a title company.

Prior to closing, your lender or closing agent will tell you how much money to bring to closing. These funds will include your down payment and closing costs. During this time, you will receive the keys to your new home as well as transfer the ownership from the seller to yourself.

The final step is to enjoy your new home!