Buy a Home

Step 2: Understand Your Mortgage Options.

Knowing your loan options and a likely interest rate range can be very reassuring. Without this understanding, too often it imposes unnecessary anxiety. Research the various loan options, or have a discussion with an experienced loan officer. Being well-informed will relieve unnecessary stress.

Your Park Cities Mortgage loan officer will quickly help you navigate the mortgage options environment. Strike this concern from your list so that you can focus on the excitement of shopping for a new home. But to start, these are some of the options and terms that you should familiarize yourself with.

Adjustable Rate and Fixed Rate.

An adjustable rate mortgage is an option in which the interest rate can be “adjusted” following an initial fixed-rate period such as three, five, seven, or ten years. Interest rate changes depend on the change of an established index. Under fixed rate mortgage options, the interest rate is fixed for the life of the loan so there is no interest-rate risk associated with this option.

Loan Term.

This is the length of your loan term expressed in years, and the typical options are 15, 20, or 30 years. Typically, the shorter the loan term, the lower the interest rate. But be mindful, with the shorter loan term, your monthly payment will be higher.

Discount Points.

Commonly, discount points are referred to as “points.” Essentially, this is additional money paid up front to the lender for the purpose of reducing your interest rate. The discount amount you pay is calculated on the loan amount financed. This process is often referred to as “buying down the rate,” which can lower your monthly mortgage payment.

At Park Cities Mortgage, one of our loan officers can walk you through the various finance scenarios as well as help you determine which mortgage option is best suited for your short- and long-term financial goals. Or, if it makes economic sense, to buy down your interest rate.

Step 3: Gather Your Financial Information and Apply to Be Pre-Qualified.

To ensure your mortgage application and your loan process occur smoothly, begin gathering your financial documents. Use our loan checklist as a guide. Then, if there are any unique aspects about your application such as being self-employed, talk with a Park Cities Mortgage loan officer to determine what other nontypical documents will be required.

Ask your loan officer to obtain your preliminary credit report for review. Determine if there are any unexpected credit issues that are reported. In most cases, credit issues or erroneous information reported can be addressed with experienced guidance.

Next, it is time to apply for pre-qualification on your loan. You can begin your application online, or contact a Park Cities Mortgage loan officer directly to begin the process. This is when the documents that you gathered will be submitted.

Step 4: Shop for Your New Home.

Now that you have been pre-approved, you are armed and ready to begin the home shopping phase. Once you identify the perfect home, your real estate agent will walk you through the process of submitting an offer. Your conditional pre-approval letter, obtained earlier, will make your offer more attractive to the seller because it removes qualifying concerns that sellers experience with an offer.

Step 5: The Road to Closing.

After your offer has been accepted, the focus of your loan application falls under the closing process. You will schedule and complete the property inspection, followed by the ordering of a property appraisal and the request for a preliminary title report from the title company designated in your contract. During this period, any additional documentation needed will be requested by your loan officer. Final loan approval requires the review and acceptance of the appraisal findings, review and acceptance of a final title commitment, and the removal of any outstanding loan conditions. Once final loan approval is obtained, a closing date and time will be scheduled. On the day of closing, you will be required to sign numerous loan documents, and your down payment and other costs associated with your purchase are received by the title company. Your funds, along with your loan proceeds, will be disbursed to the seller, and your closing will be finalized. Upon funding, the keys to your new home are presented to you.

The purchase and loan process may appear intimidating, but with the guidance of an experienced Park Cities Mortgage loan officer, the process can be simple. If you have questions or concerns, you can rely upon your loan officer because they have done it countless times. They are on your team, and you can trust them. You have their support even after closing. That’s why customers continually return to Park Cities Mortgage for their future mortgage needs.