A STEP BY STEP HOME FINANCING CHECKLIST: KEEPING IT SIMPLE:
As a former Real Estate Paralegal and closing coordinator, and as a Senior Loan Officer and 1st time buyer specialist of 10 plus years, I have been involved with literally hundreds of purchase transactions from start to finish. I have assisted people buy their dream homes to occupy and raise their families, second or vacation homes on lake shores or atop mountains, multi-family dwellings to house tenants and collect rental income, mobile homes in parks, and even equestrian ranches in the Midwest. There is no angle of the purchase transaction that my team and I do not understand. But this posting is not about that. This is to demonstrate that over this time I have come to understand the chronology and process flow of a smooth, easy and successful purchase transaction and I am sharing that with prospective buyers and network partners now so they may understand and apply these methods in their potential upcoming home purchase.
1. Pre-approval - Get pre-approved for a mortgage and know in advance exactly how much house you can afford. Completing this step will also increase your negotiating power since you'll be viewed as a "cash buyer". It's crucial to supply the lender with as much information as possible, as accurately as possible. All outstanding debts as well as assets and income should be included. Paperwork supporting the pre approval must also be submitted. Information commonly sought includes pay stubs, two years' tax returns, credit reports, account statements verifying the source and readiness of the down payment, and funds to close and reserves.
2. Loan Search - Keep yourself in the hands of an experienced mortgage professional, someone who will help you to determine which financing options best suit your needs today and in the future.
3. The Hunt - Choose a qualified Realtor®. Begin shopping for a house. Once you find the right one, the terms of the sale will be negotiated, including the price and potentially the terms of the loan being sought.
4. Appraisal - Lenders require an appraisal on all home sales. By knowing the true value of the home, the borrower is protected from overpaying. Your Realtor® will also have done a comparative market analysis for you.
5. Title Search - This is the time when the lender's legal staff searches for any liens against the subject property. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.
6. Termite Inspection - While most purchase loans do not require a formal inspection for termite and water damage, some loans (especially government loans) allow for the possibility. If problems are found, repairs may be necessary.
7. Processor's Review - All pertinent information will be packaged by your mortgage professional and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit. A good loan professional will have already started a file for you at pre approval, making this an easy step.
8. Underwriter's Review - Based on the information put together by the loan professional, the underwriter makes the final decision regarding whether a loan is approved. This is another instance where a good originator, one with years of expertise, will know ahead of time whether the underwriter will see quirks and want revisions, and will hand the underwriter an already complete and fully approvable loan package.
9. Approval, Denial or Counter Offer - Some times, in order to approve a loan, the lender may ask the borrowers to put more money down to improve the debt-to-income ratio. The borrower may also need a bigger down payment if the property appraises for less than the purchase price. A proactive, knowledgeable and resourceful loan professional, one with foresight and who is in constant communication with the other professionals such as the Realtor(s), appraisers and the seller will see these issues coming and alert you ahead of time if warranted.
10. Insurance - Lenders require fire and hazard insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. In California, some lenders require earthquake insurance on condominiums.
11. Signing - During these steps, final loan and escrow documents are signed. Your loan professional should be present for these steps now that we are closing!
12. Funding - At this point, the lender will send a wire or check for the amount of the loan to the title company.
13. Confirmation of Funding - The lender authorizes the disbursement of loan proceeds.
14. Closing - Documents transferring title from the seller will now be officially recorded by the County Recorder.
15. Congratulations, you are now a homeowner!
See? It is literally that easy! Most of these steps are handled by the professionals helping you! The best things a home buyer can do are to:
A.) Remember the difference between a pre-qualification and a pre-approval (that a pre qualification is useless when truly stepping up the house hunting, one really needs a pre-approval).
B.) Don't be fooled by what us senior officers call "Johnny Cubicle", the participating loan bots who are scripted to quote "lowest rates! lowest rates!", knowing full-well you are not "lock-ready" at the time they are quoting undeliverable, false rates that are certain to have page after page of conditions and fine print. Choose a trusted lending source who demonstratively wants to equip you with knowledge, power, who will work for you both now and in the future AND will deliver you the lowest available rate at the time of application and lock-in. Choose a trusted Realtor® with lots of experience, magnetism and zeal. Comply with all of their requests for additional documentation in a prompt manner! Loose lending is over and this is the age of fully-documented transactions again!
C.) The best plan is to have a file started right from the time of pre-approval with all of the things that will be needed down the road so that they are readily available when needed. Preparedness is key in real estate transactions! The market IS picking up steam now and there are actually bidding wars occurring on many homes again so be ready on a moment's notice!
As always, my team and I are ready and eager to help! To request a pre-approval or for a referral to a very sharp and experienced buyer's agent who can send you listings in YOUR range please call today!
Jamie Woods ~ Senior Loan Officer ~ FHA/VA/USDA Specialist ~ SARA Mortgage & Financial, LLC ~
(603)-965-8241 http://www.mortgagemagician.blogspot.com
Licensed by the NH Banking Dept
I specialize in arranging FHA "Buy & Improve" (203k) financing for qualified MA, NH & ME home buyers as well as Jumbo/Luxury financing up to $1.5 mil. I also arrange VA loans! Call me today!
Home ownership truly is and always will be the American dream. I believe home is more than just a place to lose your keys. It's where your family lives. It's where dreams are fulfilled, where memories are made, where hugs are given. It's where you plant your garden, catch some rays with a good book on a summer day, watch the kiddoes catch fireflies or just sit on the front porch swing with your loved one and listen to the crickets chirp. Home is where life is lived.
My name is Jamie Woods (aka "JP Sunshine"). I am a Senior Loan Officer with Sara Mortgage & Financial, LLC. I am among the finest, too, as I've been told by my delighted clients (some of their personal stories below). I am writing this to tell folks a bit about myself, my practice and my upbringing, should anyone have the time and patience to read it!
I am the very proud son of my mother, Shelby, an amazing "town hall and choir lady", a woman who just won't slow down and a woman who is also a published author of a short narrative which tells of her upbringing, her love, appreciation and fondness for her mother and her time and both their experiences at the seacost of Maine. The name of the narrative is "Salt Water Solutions" and it is one of about 30 pieces compiled in a very interesting book of other pieces by mothers everywhere, advice good and bad, called "My Mama Always Said". Ask me for a copy some time! My father, Chuck, has been a chief registered nurse at a prominent hospital just west of Boston for almost 25 years! I learned so much from Chuck, such as how to be a good sport, the value of hard work and the art of self-discipline. Sadly, however, we all just recently lost Chuck to a massive overnight heart attack this past May (2009). His legacy lives on in all of his children and the countless hundreds of others whose lives he not only touched but also helped tremendously. Chuck was a true healer in every sense of the word and a 1st class philanthropist. I am also a younger brother to Chris, a very brainy and industrious "computer guy", who is a chief programming engineer for Liberty Mutual, a younger brother, Chet, a thick-skinned and natural EMT/medic who along with his wife Alenna just had their first bippity boppity baby (its a boy, named Timothy Dimitri Woods) and two beautiful sisters; Elizabeth, Massachusetts' finest accountant and new mommy of two little ones, Dylan and Abby), and Amanda, a National Guard veteran, sales pro and a fitness buff who just got married to her man, Jim, of 5 plus years with a beachside wedding in Sanibel, FL and will probably also be producing some offspring of their own in the near future! We are all originally from a quiet suburb just north of Boston, MA, though my sisters joined us from South Korea in 1976 as very young toddlers via an adoption agency in Boston! So yes, the stork does sometimes drop babies down chimneys!
I was born and bred a New Englander. However, in my 38 short years, I have had the opportunity to travel, do business with, network with and meet so many people and professionals from all around the country. Even though I'm only considered I guess "mid career", in my time I have been involved in, overseen and directed numerous marketing, business development and advertising projects for companies everywhere, from fortune 500 companines to small mom and pop corner shops such as gift basket shops, florists, bed & breakfasts, inns, vacation attractions, travel agencies and of course, Realtors.
Since about 2000, I have been in the property closing business, which quickly became my new found and everlasting passion. A good friend of mine, Richie, a closing attorney north of Boston decided to woo me away from my marketing/adverstising endeavors (which was no easy undertaking), take me under his wing and teach me all about the chain of title to properties, how they are recorded and filed, listed and sold. God Bless you, Richie! You were an important catalyst to my dreams come true! I quickly "learned the ropes". In operating as his title abstractor/closing specialist, I made numerous contacts at mortgage companies, who in turn wooed me out of there and into their domain. Turns out, that's right where I belong! To this day, I still work with Richie and give him all my referrals for closing busisness, not just out of a sense of loyalty and gratitude but because there truly is no better closing attorney around. His staff are incredibly adept, educated, passionate and just all around perfectly professional. Anyway, I have been so blessed to be able to help people's dreams come true. Yes, I do recognize that people make their own dreams come true, but I sure enjoy helping!
So, if you're in need of mortgage financing on your existing Massachusetts, Maine or New Hampshire home or you want to purchase a new one, or if you simply want to chat or ask me some questions, call or email me! While I arrange mortgage financing of almost any type for any qualified applicant, I am a 1st time buyer specialist and I also specialize in home improvement/renovation financing for existing home owners or those buyers that wish to acquire "fixer-uppers" that they wish to improve and live in. I am a licensed NH loan originator which means that I can arrange a mortgage loan for you anywhere in the state of New Hampshire. I am also pursuing my Massachusetts licensing in 2009. However, if you need a Massachuestts mortgage loan the branch that I work for is MA licensed and has licensed reps that can help you!
I look forward to hearing from any of you about any topic you want. I love to hear from good people and all about their experiences, upbringings, and basically whatever makes their world go around. Be prepared, though, I am an eternal optimist and I do not subscribe to "The sky is falling" hysteria being over publicized by pessimists and the media in general. Why? Well, because home ownership is and always will be a person or family's strongest asset and investment, values always go up and down over time, as we all know, and I have full and complete trust that Uncle Sam will disallow a total market avalanche. Let's chat some time!
~ Jamie Woods
Sara Mortgage & Financial, LLC Cell: (603)-965-8241 Fax: (801)-672-7916
June 22, 2008
"Hi Jamie! I got your name because you came HIGHLY recommended from my brother-in-law, Dwayne, and his girlfiend, Amy. They just bought a home last month and you were the key person in helping them get their home! My husband and I have been renting a HUGE five bedroom house from his parents for a few years and are very, very sick of renting and throwing our money out the window (especially since it is so expensive to heat!). We really want to downsize and get something small. We have found a place we like about 20 minutes from where we live now which is in central western, NH. Hope you can help! Michelle"
August 2, 2008
"Jamie! We just don't know HOW to thank you enough! As you know, we are absolutely thrilled and delighted to have met you and to have been helped in such a kind and sincere way. You made not only the qualifying and approval process so easy and stress-free but it was obvious that even the agents and the attorney at the closing just absolutely loved you. This was not an easy deal by any stretch but you made it happen! We love you so much! God Bless. Michelle"
May 30, 2008
"The FHA program Jamie recommended is wonderful. We had researched many banks, interest rates, PMI, everything we could think of before buying our home. We first talked with a mortgage company, and they told us there were no 100% financing programs available and we would need 5% down PLUS closing costs. As a young family, we could not afford that, so we went back to the drawing board. Thats when we found Jamie Woods. He got us everything we needed. We got 100% financing and the seller paid our closing costs!! We had no money down. During the process we had questions and when we called to talk to Jamie, we felt like we were his only client. He responded very quickly and was very helpful answering questions. We would highly recommend Jamie Woods anytime!"
Amy J. Lebanon, NH
Stacy St.George from RE/MAX Elite had this to say....
"In a market where people are just sitting back and waiting for business to come to them, Jamie is being pro-active and finding the business to bring to the agents by calling renters in the area and inviting them to these monthly buyer seminars. He is very educated in the programs he offers, and takes the time to listen and answer the questions these buyers have. I would highly recommend Real Estate Agents to use him to help build their buyer business in todays market."
Rebecca Skane of Keller Williams Seacoast Realty (a fellow activerainer!) had this to write:
"You are an amazing professional with a wealth of information to offer! That is why real estate agents like me love mortgage specialists like you!" 10/30/2008
"Dear Mr. Bates, December 10, 2005
I am writing you today to express my thanks to your organization for handling my purchase financing request on our new home in Rohde Island. My fiancé and I are particularly grateful for Jamie Woods, your finest mortgage consultant. Jamie handled our request from start to finish with the utmost congeniality and professionalism.
I am a self-employed carpenter with an alternative financial and credit profile. Jamie not only assisted my fiancé and I in the purchase mortgage but he also took the initiative to challenge a faulty item on my credit report, which is now being resolved and as a result, my score is increasing.
It was an absolute delight working with Jamie, who made sure that our needs were met to the fullest, not only now but also in the future. We will definitely be referring our friends and loved ones to Jamie and your company when the time comes."
Very Truly Yours,
R. Prezioso
Warwick, Rhode Island
"To Whom It May Concern, January 4, 2006
I would like to thank you and Jamie Woods for all your diligence and persistence on refinancing my multi-family home in Danbury last month.
Not only did Jamie seemingly make the impossible happen but also got the deal done in less than two weeks and at a rate that was unheard of while I was shopping lenders.
Furthermore, I would like to add that I almost had to cancel the deal at the very last minute due to a sudden illness in my family overseas. When I notified Jamie that my father had taken ill and I needed to cancel or postpone the refinance, Jamie's first and only concern was my father's health and well-being. Jamie wished me a safe trip to Brazil and sent his prayers with me. Fortunately, my father's health improved, I was able to remain in Connecticut long enough to get the deal done, and also, when I returned, there was a gift basket wrapped and awaiting my arrival sent from Jamie.
Jamie is a breath of fresh air and I would recommend him in the highest to anyone considering a mortgage of any type!"
Sincerely,
M. Louzada
Danbury, Ct.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
