A Happy Place
The final “P” in the homeownership process is “Patience” You have to have patience with the mortgage process, the home search process, and the closing process.
The Mortgage Process-
When you apply for your mortgage, your lender will request documents from you to determine your qualification. Once you find your home, you will be required to submit these documents again and additional documents as well. Your patience comes into play, because they will ask you the same questions several different ways. Your patience comes into play when you call or e-mail the lender and they may not respond in a time acceptable to you.
The Home Search Process-
You know how much you can spend, you’ve assessed what your needs and wants in a home are, you may have even researched neighborhoods, schools, and other criteria for your home search. Now your ready to go shopping for your new home. You’ve given your REALTOR a list of properties you want to see, and you can only see two out of six because, the property is already under contract, seller’s not accommodating with showing of their home, etc. Patience! Your new home awaits you.
Now you’ve found the home you’ve submitted an offer and once again you have to have patience. If the property is a foreclosure it may take a week to get a reply to your offer. “Patience”. If the property is a short sale it may take months to get a reply from the bank regarding the sale. Then there is also the possiblity of multiple offers on the property. Now this requires patience and preparedness because once you have determined what the property is worth to you supported by Comparable Market Analysis (CMA) from your REALTOR do not get caught up in the frenzy and agree to pay more than what you are comfortable with or what the home is really worth. (The bank will have an appraisal done that you will pay for. If the property does not appraise, the seller may go with another offer and you have now waited time and money) Remember, your new home awaits you.
The Closing Process-
Once you have your fully executed contract (signatures & initials of all parties) the fun begins. You have to schedule inspections, meet with your lender to do a “formal” mortgage loan application, provide information to the title company, and may have to apply for condo or homeowners association approval as well. All of this must take place within 30 to 45 days, while you continue to maintain your regularly scheduled life. The bank has more forms for you to sign and more documents for you to submit, now the condo or the homeowners association, wants information and documentation from you as well as the title company.
Now you are ready to close, now you have to wait (patience) to know exact cash to close you will need. You dash to your bank get a cashiers check or wire funds. At the closing table you are signing so many documents at one time. Why? Because your patience paid off and now your a home owner!
Next blog…home ownership education classes, and grant programs to assist with frst time homebuyers.