Home Loan Purchase Basics | First Time Home Buyers or New Investors Apply Now
Home Purchase Basics - Mortgage Loan - Conventional, VA, USDA, FHA & Self-Employed Alt A
Congratulations on your decision to buy a new home! Our goal is to provide you with knowledge and insight into the mortgage process so you can focus on finding your dream home. If you have questions call one of our Expert Nationally Licensed Mortgage Home Loan Officers at (970) 445-4977
Get the complete digital loan experience, and still be able to pick up the phone or stop by one of our local full-service mortgage bank branches. We offer some of the most competitive rates and fees in the industry. .
First let’s start with Home Purchase Loan Do's and Don'ts....
- Do stay in your current job
- Do continue to make your mortgage or rent payments on time
- Do continue using your credit as normal and stay current on all existing accounts
- Do keep your same insurance company
- Do call us if you have any questions, at any time
- Don't make a major purchase (car, boat, jewelry, etc.)
- Don't apply for/open/close/max out any credit cards
- Don't change jobs without notifying us first
- Don't transfer any balances from one account to another
- Don't pay off any charge offs without discussing it with us first
- Don't pay off any collections without discussing it with us first
- Don't buy any furniture or appliances on credit
- Don't change bank accounts
- Don't consolidate debt onto 1 or 2 credit cards
- Don't take out a new loan or start home improvement projects
4 Easy steps to your new home mortgage
Getting pre-qualified is the initial step in the mortgage process and it's generally fairly simple. You supply us with your overall financial picture, including your debt, income and assets. After evaluating this information, we can give you an idea of the mortgage amount for which you qualify.
Pre-qualificationcan be done easily over the phone or by applying online through our website, and there is no cost involved. The initial pre-qualification step allows you to discuss any goals or needs you may have regarding your mortgage.
At this point, we can explain your various mortgage options and recommend the type that might be best suited to your situation. Because it's less involved, and based only on the information you provide, your pre-qualified amount is not a sure thing; it's just the amount for which you might expect to be approved. For this reason, a pre-qualified buyer does not carry the same weight as a pre-approved buyer who has been more thoroughly reviewed.
Getting pre-approved is the next step and is more involved. You'll complete a mortgage application and then supply us with the necessary documentation to perform a review of your financial background and current credit rating.
See our Mortgage Checklist for a list of commonly needed items. From this, we can tell you the specific mortgage amount for which you are approved. You'll also have a better idea of the interest rate.
With pre-approval, you will receive a conditional commitment in writing, allowing you to look for a home at or below your approved price level.
Obviously, this puts you at an advantage when dealing with a potential seller, as he or she will know you're one step closer to obtaining an actual mortgage.
The other advantage of completing both the pre-qualification and pre-approval before you start to look for a home is that you'll know in advance how much you can afford. Getting pre-approved for a mortgage also enables you to move quickly when you find the perfect place. When you make an offer, it won't be contingent on obtaining financing, which can save you valuable time.
In a competitive market, this lets the seller know that your offer is serious which could prevent you from losing out to another potential buyer who already has financing arranged.
Once you have found the right home and receive an accepted offer, we will complete the application and prepare the loan for Underwriting.
3. Loan Commitment
The "loan commitment" will be issued to you when your loan has been approved. More information may be required if the appraiser brings up anything he or she feels should be investigated (i.e. structural problems, accessibility issues, outstanding liens or litigation in progress).
Your income and credit profile will be checked once again to ensure nothing has changed since the initial approval. You will also need to obtain home owner’s insurance on the property.
4. Loan Closing
At the loan closing, you will sign the final loan documents and receive the keys to your new home!