• Determine your home price range based on your re-occurring monthly obligations.
• First time homebuyer Document checklist.

Your next step is to talk to a Residential Mortgage Solutions expert who can guide you through this process. This typically starts with completing a

Mortgage Loan Application on line, over the phone or in person. A licensed Mortgage Loan Originator will take your loan application, pull your credit report and calculate Mortgage and Debt to income ratios based on the adjusted gross income amounts you have provided. Your income is typically determined by your last two years average adjusted gross income for one or more borrowers. Therefore it is a good idea to gather your last two years federal income taxes and supporting W2 schedule for all income earned during this time. Print a copy of our “First Time Homebuyer Checklist” to help with the document gathering process.

• This is an important long term decision that requires careful thought and expert guidance from a licensed Mortgage Loan Originator.
• Products offer both fixed and adjustable rates.
• Know all of your credit scores.
• Lenders will use the lowest middle credit score of any borrower. Scores play a material role in determining what loan program(s) you qualify for, your interest rate and down payment amount.
• Lastly, depending on your loan program, you may need a down payment for this home purchase loan.
• 401k loans are also acceptable sources.
• Most loan programs will allow a gift from certain relatives as part or all of your down payment.

Selecting the right loan product for your financial situation is a critical decision in the home buying process. Our loan options tab provides you with a detailed overview of the many loan programs available. It is important to familiarize yourself with these loan programs to see which ones you qualify for and the best one for you. A great place to start is by looking at the down payment and credit score requirements associated with different types of loans. Your licensed Mortgage Loan Originator will help you with this decision after they have analyzed the financial information you have provided them during the “pre-qualification process”. Lastly, take a look at our “compare all loan options” tab to help guide you in this loan program selection process.

• You have officially been “pre-qualified”…..Congratulations!
• You should have obtained a pre-approval letter from your Mortgage Loan Originator.
• The pre-approval letter is a powerful negotiation tool that lets sellers know that you are a serious bona fide buyer.

The pre-qualification process is now complete and you can begin looking for a home to purchase. You expert Mortgage Loan Originator should provide you with a “pre-approval letter which provides you with a price range and loan amount for which you’ve been pre-approved. A pre-approval means that it’s still subject to the findings of a formal underwriting review. It’s now time to take that next step and find an expert to help you locate a property that meets your personal requirements and pre-approval terms. You need a Realtor!

• There are many websites out there that show homes for sale, don’t believe everything you read!
• Many websites do not have up to date information about the status of a particular property.
• Selecting a qualified realtor will save you time by searching out properties for sale that meet you home hunting criteria.
• Residential Mortgage Solutions has experience with some of the top rated real estate agents in your market.
• Let us introduce you to one of our proven experts to get this process started today. (click on “Our Realtor Partners”)
• If you decide to choose your own realtor, here are some great interview questions to ask: (click here) (the click here should bring up a drop down box with containing the 5 numbered items below)
• The right realtor will act as your advocate on what will most likely be one the biggest purchases of a lifetime; do your homework upfront and choose wisely!

• 1) Are you a full time real estate agent? Someone that dedicated their entire work week in their profession will be much more qualified than a weekend warrior. It’s very good sign if an agent has a decade of realtor experience, especially if they likely survived the housing crisis.
• 2) Talk is cheap and proof is in the pudding! Your next and probably best question is how many sales do you close per month or in the last year. Even more specifically and valuable is how many sales they sold in a certain neighborhood or zip code.
• 3) Are there any cost associated with your services? Most of the realtor commissions are paid by the seller; however, some realtors charge a broker admin fee and even fees for acting as a buyer’s agent.
• 4) The mortgage crisis created a great amount of short sales, foreclosures and bank owned properties, ask if your realtor has experience with these kinds of transactions. As you review these types of potential properties, your realtor needs to know how to manage these sellers and potential obstacles you may encounter.
• 5) Just like you would ask for references before hiring a contractor, baby sitter or another important job, you should ask your realtor (applicant) for the names and phone numbers of their past buyers they helped find a home.

Why should I hire a real estate agent? The first reason to hire a real estate agent before shopping for a home is that most of the time its “free”. Other than maybe a small administrative fee at closing, the seller is responsible for compensating the buyer and seller’s real estate agents when the home is sold. Here are some other invaluable services offered when you have a real estate agent on your side. First, after you have decided on the type of property you are looking for, the agent will schedule appointments to tour homes that meet your criteria. This would eliminate any unqualified properties that don’t fit the bill; thereby, saving a lot of time and effort for all parties involved, especially yours. Next, your agent can professionally negotiate the offer once you found a home worthy of a contract. In addition, a good buyer’s agent will identify potential deferred maintenance items required to be corrected by the seller prior to close or perhaps even safety hazards that may keep the house from qualifying for the type of financing for which you’ve been prequalified for. A good agent will communicate with your Mortgage Loan Originator to ensure that they request seller concessions help toward your closing costs. This will help keep your out of pocket cost down to a level that you can afford. A buyer’s agent can also recommend other professionals to work with during the home buying process. They can refer you to reliable home inspectors, real estate attorneys and title companies, movers and more. They can also help expedite each step of the buying process by following up with the necessary parties to ensure you move toward the closing table that much faster. Lastly, and most importantly a buyer’s agent is bound to help buyers whereas the seller’s agent has a fiduciary duty to the seller. Think of it this way, if you were getting sued by someone, would you hire the same attorney as the plaintiff that filed suit against you….. of course you wouldn’t. You hire a real estate agent to help protect your interest and work for you, not the seller.

• You have completed an extensive search for the home that you love….. it is time to make an offer.
• Your prequalification letter will be required by the seller’s agent to prove you are a bona fide buyer who is ready to purchase.
• Your purchase offer if accepted will become a binding sales agreement.
• Below is a list of items your written offer should include: (the click here should bring up a drop down box with containing the 11 numbered items below)
• 1) Address to the property
• 2) The sales price
• 3) Sellers promise to provide clear ownership
• 4) The closing date
• 5) Seller contribution towards your closing cost (represented as a whole dollar amount or percentage of the purchase price)
• 6) Amount of EMD (earnest money deposit)
• 7) How the transfer tax will be paid (typically they are split between buyer and seller 50/50)
• 8) Any state specific requirements
• 9) Deadline dates for
  • Home inspection
  • Home appraisal
  • Firm loan commitment
• 10) Provision for buyer to complete a final walk through just prior to closing day
• 11) Contingencies – these are typically items that you are requiring to go through with the purchase, only if that event occurs. The two most common contingencies are:
• Financing contingency – As a buyer you must be able to get financing from a lender and if you can’t secure the loan you will not be bound by the contract.
• The home inspection – The property must get a satisfactory report by the home inspector you chose. Typically this must happen within 10 days of the offer. If there are items that require repair the seller has the options of repairing these identified items, reducing the sales price for the estimated price for the repair or cancelling the contract if they are unwilling to make the necessary repairs.
• if the seller accepts all the terms of your proposal, you will have a binding contract.
• Each time either party makes a change in the terms the other side is free to reject, accept or make another counter offer.
• Your real estate agent should evaluate all of the terms in the offer and counter offer because as soon as both parties accept the written offer, you have a binding legal contract.

Now that you have located a property you love, it’s time to get serious and put in an offer. Remember you don’t have to put an offer in for the listing price of a home. Buying a home often requires a negotiation by all parties involved. Your realtor should have done a good bit of homework on this home to first see if it is priced correctly. It is very common for sellers to list a home up to 10% higher than the actual market value to allow for negotiating room. However this strategy may not apply if the property is a bank owned foreclosure or short sale. In this case, the home may be well underpriced in order to move the home quickly off of the bank’s balance sheet. This is where having a seasoned buyer’s agent becomes invaluable. Knowing who your seller is, will help you in your negotiating strategy and provide you with a better idea of where your first offer price will start. Be prepared to offer and then counter offer a few times before the terms of a contract are agreed to…. This is how the real estate game is played. There is an old saying that “pigs get fat and hogs get slaughtered”; so, remember in any negotiation both parties have to walk away with a fair deal. Don’t ask for more than what is reasonable or you may end up losing the home of your dreams by offending the seller

• You shouldn’t do anything that will have an adverse effect on your loan.
• Lets talk about the DO’s to pay attention to prior to the closing date of your loan.
• Always be responsive to providing documentation requested from your lender.
• Provide your EMD (earnest money deposit) from you own funds or acceptable gift funds.
• Watch your credit score through a credit monitoring company.
• Notify you Mortgage Loan Originator of where your assets for closing will be derived.
• Save as much money as possible for any unknown expenses that may arise.
• Make all your credit cards and installment debt payments on time.
• Communicate any positive or negative changes in your employment status or income.
• Discuss with your Mortgage Loan Originator how someone providing gift funds to you will be transferring the money.
• Now let’s focus on the don’ts of the loan process.
• Don’t open up any new loans, credit cards, cars or other debts until you go to settlement.
• Don’t change jobs or employment without consulting with your Mortgage Loan Originator first.
• Don’t deposit any cash into your account unless it is the exact amount that can be verified by a recent pay check.
• Don’t borrower any money from any person or company.
• Don’t transfer funds from different accounts before first discussing where the monies are coming from with your Mortgage Loan Originator.
• Don’t take any leave of absence or unpaid time off which could affect your qualifying income.
• Don’t spend the monies you are using for your down payment and closing cost.

Downpaymentassistance.com has laid out some very important Do’s and Don’ts for ensuring a smooth mortgage process. Take some time and review these important items before you get the process started, because afterwards may be too late. The best advice we can offer you is to ask your Mortgage Loan Originator questions and listen to his or her answers. Following the advice in this list will ensure your mortgage loan process is without hassle and hopefully stress free.

• After you have submitted the required documents for your loan, your file is broken down, organized and submitted for processing.
• The mortgage loan processor orders all of the required verifications on your loan including:
• Assets
• Employment and residence history
• Rental or existing mortgage history
• Credit inquiries
• Title and appraisal requests
• Upon receipt of the required verifications, your loan file is submitted to underwriting.
• The underwriter will approve, suspend or decline your mortgage application.
• Once conditional approval is issued, you will receive the list of the conditions from your Mortgage Loan Originator.

The average company closes a purchase loan in 45-60 days, but at Residential Mortgage Solutions our average purchase loan closes in less than 30 days. Our secret to this great service lies in our experience in processing and underwriting. Our processors have more than 40 years of combined processing experience, while our underwriting department is equally experienced and most importantly, it’s located “in house”. All of our Mortgage Loan Originators have direct access to our underwriters, allowing them to ask questions and get answers on your file quickly. Depending on the loan type you are applying for, government or conventional, the underwriting conditions will vary. Just remember that the better your credit score, job history, down payment and debt to income ratio, the easier and faster your loan will be underwritten and approved.

• You have met all of the conditions on your loan and the underwriter has issued a final approval or “clear to close”.
• You should expect a final Loan Estimate 4 business days prior to your closing date.
• Since 2015 the HUD 1 settlement statement was replaced by what is now called the CD or Closing Disclosure.
• The CD must be issued by email, mail or in person 3 business days prior to the settlement date.
• The purpose of this process is to make sure the loan rate, terms, fees and costs are accurate based on the initial Loan Estimate provided.

Congratulations you’re almost at the finish line and the hard part is over. Your Mortgage Loan Originator should be in constant communication with you about the Loan Estimate and Closing Disclosure he or she is about to send you. Follow their instructions carefully when asked to open your email to review these documents otherwise there may be a delay in settlement. Most importantly print the Closing Disclosure and review for errors, required funds for closing or any discrepancies that you see. Discuss any issues with your Mortgage Loan Originator about any changes that need to be addressed.

• Your contract has already determined your day of settlement.
• The coordination of where to close and the time is normally handled by your real estate agent for all parties.
• Prior to going to sign the loan documents your real estate agent will arrange a final walk through in the home you are about to purchase.
• You are encouraged to look for any damage that may have been caused by the moving company that the seller used.
• Most title companies or closing attorneys require your funds to be wired to their account one day prior to closing.
• Once have executed the many documents required a few other items still need to be resolved.
• Making sure the utilities have been transferred into your name on the effective day of closing:
  • Gas/Electric
  • Water
  • Telephone
  • Get all of the keys to the house.
  • Get the garage door opener and code.
  • Get mailbox keys.

You made an offer on a home, it was counter offered and you finally agreed on the terms of the contract, the only thing standing between you and your new home is going to settlement. Settlement day should be a good experience for everyone. As a buyer you should be excited about purchasing a new home, and the seller is equally excited about moving on. You should expect to take the day off of work to make sure this process goes smoothly and allow for any possible delays. The parties attending settlement include any real estate agent involved in the transaction (yes they always show up to collect their commission) you the buyer(s), the seller(s) which include anyone on the current Deed to the home and the closing agent or attorney who will review and notarize all of the loan papers for you. Unlike most mortgage lenders at Residential Mortgage Solutions many of the Mortgage Loan Originators attend the settlement to ensure a smooth process and to congratulate you for crossing the finish line to home ownership. It is important to be prepared on the day of closing. Make sure that all buyers bring a valid government issued ID (drivers license is acceptable) you should also bring your check book just in case there are some miscellaneous expenses that were unaccounted for on your closing disclosure. By now, you should have picked out a moving date and have the movers lined up for delivery. You’ve signed all of the loan papers and now have the keys to the home. We recommend that you immediately change the locks on all of the doors upon moving in. The keys are the final sign that the house is yours. Congratulations you have survived the mortgage process and you are officially a home owner!