Buying a home is an important financial decision that should be considered carefully. The following information will help you become familiar with the various stages of the mortgage process and help you avoid any pitfalls that may delay homeownership.
The first step of purchasing a home and getting a mortgage is to determine what you can afford. To do this, you should work with a St. Mary's Credit Union Lending Expert to get pre-qualified. A pre-qualification is an estimate of how much house you can afford and how much money a lender would be able to loan you. To get pre-qualified, you will need to provide documentation regarding your current financial situation including:
With this information, we can get a good picture of how much new debt you can take on with a mortgage and empower you to confidently shop for your new home.
Once you have an accepted offer on a property, it's time to choose which mortgage product is right for you and complete a formal mortgage application. A St. Mary's Credit Union Lending Expert will be happy to help you decide which loan option is right for your specific situation. They will also work with you to determine your mortgage rate, estimated monthly payment amount and estimated closing costs.
Once you have applied for a mortgage, you will receive a Loan Estimate (LE) that will list the estimated costs of closing on your home. The LE will give you an idea of the expenses that you will need to pay at closing. These charges may include:
Before you close on your loan, you will receive a Closing Disclosure (CD) Settlement Statement that will accurately list your final closing costs. In some situations, the total closing costs listed on the CD can differ from those listed previously on the LE. At closing, your attorney will walk you through each item on your CD.
At closing, you and your attorney will address all of the paperwork that is required to transfer legal ownership of the property over to you. This process will include:
Once you have completed the four steps above, the house keys are yours and you will have successfully bought your new home! Get started by contacting a St. Mary's Credit Union Lending Expert today at (866) 585-7628.