Home Mortgage Resource, Inc. - Home Purchase Basics

Congratulations on your decision to buy a new home! There are many important things to consider throughout the process, especially if you're a first-time homebuyer. Here's some information that will keep you on track.

A home purchase may be your largest financial transaction to date, so it's important to make the right decisions and to keep an eye on the details. With the assistance of your Real Estate Agent and Loan Officer, it should be an efficient, pleasant, and ultimately rewarding experience.

What your real estate agent will do:

Preview available homes to weed out those that are overpriced, or undesirable in some other way.
Present the homes that suit your needs as you've defined them.
Help you determine the difference between a good buy and a property which, because of its nature (neighborhood, market appeal, etc.), might have to be discounted if you decide to sell in the future.
Negotiate the best deal for you. With a pre-qualification letter from us in hand, your real estate agent will be able to demonstrate that you are a qualified and capable borrower. This will strongly influence the seller, and may make the difference between the seller accepting your offer or someone else's -- even if your offer is lower!

What your mortgage broker/mortgage lender and loan officer will do:

Assist you in selecting the best loan to meet your personal situation and goals. This single decision can save you thousands of dollars throughout the years!
Determine which loan options and terms you can get approved for.
Start the application process with you and provide you with next steps and documents needed for your approval.
Keep you informed of your loan status throughout the entire process.
Keep your real estate agent informed of our loan progress. (Note: Your personal information is always kept confidential between you and us; only deal points and progress are shared.)
Get the appropriate loan for you at the best rates and fees. This will save you significant money up front and throughout the years to come.

What your mortgage coordinator and loan processor will do:

Work with your mortgage broker/mortgage lender and you to ensure your mortgage application is complete and accurate.
Make sure all the documentation that will be needed for loan approval has been supplied, will be supplied or is in the loan file already.
Make sure all third party vendor items needed for loan approval are completed or will be completed in time for closing.
Work with the underwriter to make sure everything needed to complete a final loan approval has been done.
Submit the loan and all needed documents to the underwriter for review.

What your underwriter will do:

Review each aspect of your mortgage application including each document you supply and all documents supplied by third party vendors.
Ensure all program requirements and guidelines for the loan you have requested have been met or will be met in time for closing.
Review and ensure each document supplied by you or by third party vendors are complete and they meet the necessary requirements for program approval.
Request additional information and documents as needed to approve your loan based on the guidelines of the program you have requested.
Sign off on your loan and issue the mortgage approval once everything has been done.

What the appraiser will do:

Review comparable sales that are similar in size, age, style and condition to the home you are purchasing.
Tour the home, measure and take pictures.
Review the home's history and stats through public records and local government offices.
Consult with local listing agents of the comparable sales to verify age, condition and size of the comparable sales being used.
Provide a detailed appraisal report (that conforms to the guidelines of the loan program you selected) to your lender with an unbiased option of value of your new home based on the current market.
Address any questions regarding the appraisal report.
Revise the appraisal report during the process as needed or as requested.

What the home inspector will do:

Inspect the home you wish to purchase inside and out, including but not limited to roofing, electrical, plumbing, foundation, etc.
Make note of the condition of every aspect of the home.
Provide you with a detailed report regarding the condition of each element that was inspected.
Advice you on potential repairs that are currently needed on the home or will be needed soon.

What the title company will do:

Make sure the title to the property you want to purchase is clear and legitimate.
Will issue a preliminary title insurance policy to the lender up-front and then a final policy before closing.
Will issue an owner's title policy which will protect you against lawsuits or claims against the property.
Will work directly with your lender to put together your final closing documents.
Will conduct your closing and disburse all the funds to the appropriate parties.

What your insurance agent will do:

Provide you with a quote for home owner's insurance on the new home up-front.
Will work directly with your lender to make sure the quoted policy meets all the necessary loan program requirements.
Will issue a final home owner's insurance policy before closing with all the information you lender has requested.
If you have an escrow account, will work directly with your lender to ensure payment of your policy.

What you can do:

Keep your real estate agent informed of any questions or concerns as they develop.
Keep the process moving by providing documentation and decisions as soon as reasonably possible. By doing so, many of the details are taken care of early in the process so you can comfortably concentrate on any last-minute details or events that require your attention.
Enjoy purchasing your home, but do remain objective throughout -- to make the business decisions that are best for you.
Make sure you are pre-approved as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home.
Ask us any questions you have as they come up. We're here to help you!

Congratulations on your decision to buy a new home! There are many important things to consider throughout the process, especially if you're a first-time homebuyer. Here's some information that will keep you on track.

A home purchase may be your largest financial transaction to date, so it's important to make the right decisions and to keep an eye on the details. With the assistance of your Real Estate Agent and Loan Officer, it should be an efficient, pleasant, and ultimately rewarding experience.

What your real estate agent will do:

Preview available homes to weed out those that are overpriced, or undesirable in some other way.

Present the homes that suit your needs as you've defined them.

Help you determine the difference between a good buy and a property which, because of its nature (neighborhood, market appeal, etc.), might have to be discounted if you decide to sell in the future.

What your mortgage broker/mortgage lender and loan officer will do:

Assist you in selecting the best loan to meet your personal situation and goals. This single decision can save you thousands of dollars throughout the years!

Determine which loan options and terms you can get approved for.

Start the application process with you and provide you with next steps and documents needed for your approval.

Keep you informed of your loan status throughout the entire process.

Keep your real estate agent informed of our loan progress. (Note: Your personal information is always kept confidential between you and us; only deal points and progress are shared.)

Get the appropriate loan for you at the best rates and fees. This will save you significant money up front and throughout the years to come.

What your mortgage coordinator and loan processor will do:

Work with your mortgage broker/mortgage lender and you to ensure your mortgage application is complete and accurate.

Make sure all the documentation that will be needed for loan approval has been supplied, will be supplied or is in the loan file already.

Make sure all third party vendor items needed for loan approval are completed or will be completed in time for closing.

Work with the underwriter to make sure everything needed to complete a final loan approval has been done.

Submit the loan and all needed documents to the underwriter for review.

What your underwriter will do:

Review each aspect of your mortgage application including each document you supply and all documents supplied by third party vendors.

Ensure all program requirements and guidelines for the loan you have requested have been met or will be met in time for closing.

Review and ensure each document supplied by you or by third party vendors are complete and they meet the necessary requirements for program approval.

Request additional information and documents as needed to approve your loan based on the guidelines of the program you have requested.

Sign off on your loan and issue the mortgage approval once everything has been done.

What the appraiser will do:

Review comparable sales that are similar in size, age, style and condition to the home you are purchasing.

Tour the home, measure and take pictures.

Review the home's history and stats through public records and local government offices.

Consult with local listing agents of the comparable sales to verify age, condition and size of the comparable sales being used.

Provide a detailed appraisal report (that conforms to the guidelines of the loan program you selected) to your lender with an unbiased option of value of your new home based on the current market.

Address any questions regarding the appraisal report.

Revise the appraisal report during the process as needed or as requested.

What the home inspector will do:

Inspect the home you wish to purchase inside and out, including but not limited to roofing, electrical, plumbing, foundation, etc.

Make note of the condition of every aspect of the home.

Provide you with a detailed report regarding the condition of each element that was inspected.

Advice you on potential repairs that are currently needed on the home or will be needed soon.

What the title company will do:

Make sure the title to the property you want to purchase is clear and legitimate.

Will issue a preliminary title insurance policy to the lender up-front and then a final policy before closing.

Will issue an owner's title policy which will protect you against lawsuits or claims against the property.

Will work directly with your lender to put together your final closing documents.

Will conduct your closing and disburse all the funds to the appropriate parties.

What your insurance agent will do:

Provide you with a quote for home owner's insurance on the new home up-front.

Will work directly with your lender to make sure the quoted policy meets all the necessary loan program requirements.

Will issue a final home owner's insurance policy before closing with all the information you lender has requested.

If you have an escrow account, will work directly with your lender to ensure payment of your policy.

What you can do:

Keep your real estate agent informed of any questions or concerns as they develop.

Keep the process moving by providing documentation and decisions as soon as reasonably possible. By doing so, many of the details are taken care of early in the process so you can comfortably concentrate on any last-minute details or events that require your attention.

Enjoy purchasing your home, but do remain objective throughout -- to make the business decisions that are best for you.

Make sure you are pre-approved as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home.

Ask us any questions you have as they come up. We're here to help you!