HOME BUYER'S GUIDE

(Getting Ready to Close on Your Home )

The Three Stages of Closing Preparation

Following the acceptance of your offer, the loan is closed in three stages: the house inspection, appraisal, and underwriting. Understanding how these components interact will assist you in preparing to complete your loan.

The House Inspection

It's time to schedule your home inspection after your offer has been approved. While this step isn't normally required for obtaining a mortgage, it is a safeguard against purchasing a home that is more expensive than it is worth. It is your responsibility to locate and pay for an inspector. On the other hand, your real estate agent may be able to assist you with this. They may be able to recommend an inspector and even schedule the inspection for you.

Surface-level features of the property, such as structural components, outlets, heating and cooling systems, appliances, and more, will be covered in a standard home inspection. On the other hand, the inspector is unable to inspect areas of the house that are not immediately accessible or visible. For example, to detect lead, mold, asbestos, radon, and insect concerns, you'll need a professional inspector.

Attend your inspection and ask all of the questions that come to mind. This is your chance to take a guided tour of your new home with a professional. They can alert you to any red flags and give recommendations on what to address first and how to do so.

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Underwriting

Your mortgage provider will work on underwriting your loan while all of this is going on. This is the process of validating your income, assets, debts, and property information in order to give you a final home loan approval. Our one-of-a-kind TAG Lending Group loan verification procedure ensures that your home loan is underwritten as quickly as possible, allowing you to move into your dream house as soon as possible.
Although much of this happens behind the scenes, your mortgage company may request additional documentation from you during this period. They may, for example, request documents demonstrating the source of deposits in your bank account or confirmation of extra assets. To avoid delaying the loan process, it's critical to stay on top of your lender's requests.
 

What You Can Do to Make Sure Your Loan Is Completed

Avoiding huge financial changes or expenditures is the most important thing you can do to ensure you don't get into trouble. Don't open new credit accounts or take out new loans, and avoid making expenditures that would deplete your assets. You'll be able to accomplish these things once your debt is paid off.
Taking on new debt affects your debt-to-income ratio (DTI), which is critical in deciding how much money you can borrow. If your DTI rises, you may be able to qualify for less – which, depending on the value of your property, could be an issue. It's likely that if your DTI exceeds 45 percent, you won't be able to get a mortgage at all.

 

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How to Make a Purchase Price Negotiation

Suppose the seller accepts your first offer. Congratulations! You've just purchased a home! Your lender will send you a Loan Estimate outlining your loan's fees and costs, but keep in mind that these figures could fluctuate by up to 10% before the loan is closed. Your lender will send you a Closing Disclosure before you close, detailing your final numbers, so you know precisely what you're paying for.
If the seller rejects or challenges your initial offer, you must decide how to proceed. Your agent can contact the sellers to see if they are prepared to bargain, and you can trade counteroffers to discuss the purchase price and other aspects of your offer, such as the move-in date.
Because negotiating can be stressful, it's critical to remember your objectives. Remember that it's OK to walk away if you and the seller can't agree. There will always be a new house to live in. Because this is a long-term investment, you should think about it that way.