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Steps of the Mortgage Process
Rent Vs. Own
The desire to own a home is the American dream. It's important, however, that before you buy a home, you understand the potential impact on your finances and lifestyle. Fully weigh the risks and benefits of your long-term investment: new monthly cash flow requirements; maintenance and repair time and expenses; liquidity constraints; tax advantages; pride of ownership.
Shop for a Mortgage
Searching for a loan provider may be the most critical part of the home financing process. By choosing an experienced, professional lender, the remaining steps of the process will be easier. To find a qualified lender, you can ask for referrals from your realtor, attorney or co-workers, family or friends that have recently been through the mortgage approval process. Also, ads appear in local newspapers for various mortgage lenders and the Internet also provides access to thousands of mortgage providers. Be sure to compare apples-to-apples when shopping for a mortgage: ask about specific programs that would best suit your borrowing needs; interest rate, points and fees (including application and processing) associated with the product you chose; and rate lock options.
Obtain a Pre-Approval
A Loan Officer at Northern Mortgage will review your particular situation. You can obtain a pre-qualification for a specific loan amount before you begin negotiating on a new home.
Buying Your New Home
Offer to Purchase is signed by both you and the seller. After acceptance of the offer the home is inspected. Have an experienced real estate lawyer review the Purchase and Sale Agreement so that attorney can assist you with the closing of your mortgage loan.
Mortgage Application
Make an appointment with your Northern Mortgage Loan Officer. Bring all requested financial documentation with you to start the mortgage application process. Sign and return all forms in a timely manner. The Good Faith Estimate (GFE) will tell you all the settlement charges you will likely pay at closing. Ask your Northern Mortgage Consultant questions! Be sure you understand all mortgage loan terms, conditions and fees. Decide with your Loan Officer whether or not you will "lock-in" an interest rate.
Mortgage Commitment
Congratulations, your loan application with Northern Mortgage is approved! Northern Mortgage will let you know if there are any conditions you must meet before the loan can be closed. To expedite the closing process, send any additional documentation requested to your Loan Officer at least 5 business days before closing. Forward a new Homeowner's Insurance Policy to the Loan Officer or processor.
Closing
Contact the title company selected to close your loan. The title company will tell you the actual settlement charges; bring a cashier's check (made out to you) and a government issued photo identification with you to closing. You are now a homeowner!
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