Purchasing a home can be stressful enough but getting pre-approved shouldn’t be! There are certain topics you should discuss with your lender when getting pre-approved. They are as follows:
Earnest Money Deposit: Earnest money is the amount you put on deposit with the seller. It’s called “good faith” money and lets the sellers know you’re serious about buying their home. Talk to your lender to discuss how you can be prepared to place your deposit.
Monthly Payment Calculations: Your monthly payment will include taxes, homeowner’s insurance, PMI, principle, and interest. Taxes will be determined by the house you select. Once you receive your pre-approval letter, review your monthly payment to ensure the payment you are pre-approved for aligns with your budget. No one wants to be house poor!
Max Approval & Comfort Zone: You want to be certain that you are house shopping in a price range you are comfortable with, not your maximum pre-approval amount. See reasoning above!
Out of Pocket Fees: When you find a house and go under contract, the appraisal will be ordered, and you as the buyer will pay for the appraisal at the time of service. Out of pocket fees consist of anything that you as the home buyer are responsible for paying before closing.
Your Loan: This is when the DML team will go over your loan: down payment amount, what is required, an overview of your mortgage payment, etc.
Closing Costs: Closing costs consist of title fees, lender fees, first year of homeowner’s insurance premiums, escrow setup, recording fees, etc. Most of the time sellers can pay all, or a significant portion of closing costs. Speak with your real estate agent to learn your options.
Now that you’ve been pre-approved, and have discussed the key topics above, it’s time to house hunt! Follow the outline discussed with your lender to make your homeownership dreams a reality. The loan process takes on average 30-40 days from when you get an accepted offer on a house. This is assuming there aren’t any delays on the appraisal or your paperwork. If you have questions, please don’t hesitate to reach out!
Download the DML App or contact one of our team members to get started today!