The dream of homeownership is becoming a reality for more and more Americans. There
are plenty of reasons it makes sense to own your own home; it gives you a place
to raise your kids, plan your future and is an investment in your community. Homeownership
lets you build equity and is the single biggest tax break available to most consumers.
The benefits are endless…but where do you begin?
Our Home Buying Workbook can help guide you through this sometimes overwhelming
process.
Request a Home Buying Workbook »
FAQ:
Q. Should I get pre-qualified before looking for a property?
A. You don't have to apply for a loan before looking for a property, but
it's a good idea to get pre-qualified or pre-approved for a home loan before you
find a home to purchase. When you get pre-approved, you know ahead of time how much
house you can afford, what you can expect your monthly payment to be and how much
money you will need for the down payment and closing costs. Also, many realtors
may take your offer more seriously if you have been pre-approved.
Q. How much can I afford?
A. There are numerous variables to consider when answering this question.
You benefit the most by talking with one of Unison’s mortgage loan specialists.
They will want to know your gross income and what your debts are to help them get
started. Keep in mind that, on average, your mortgage (principal and interest),
property taxes and homeowner’s insurance should not exceed 25-30% of your gross
monthly income. Your total debts (including mortgage) should not exceed 36-40% of
your total gross monthly income.
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Q. I have submitted my mortgage application, now what?
A. There are five main steps in the mortgage process:
1. Application
Once the offer has been accepted on the home you are buying and you have properly
filled out your mortgage application, you'll receive a Good Faith Estimate and a
Truth-In-Lending-Statement which outlines the approximate costs associated with
the loan.
2. Application Setup
Shortly after application, we will order a property appraisal from a certified appraiser
and a credit report. If necessary, we’ll send out Verifications of Employment to
your employer, Verification of Deposits to any other financial institutions and
possibly other verification forms as well.
3. Processing
A mortgage loan specialist will review the appraisal, your credit report and look
over the verifications. If there are any discrepancies or questions, you'll be asked
to provide written explanation. This whole package is then presented for underwriting.
4. Underwriting
This is the point where your loan is either approved or denied. The decision will
be based on the appraisal, your credit worthiness and ability to repay the loan.
You may be asked to provide more information to help with the decision. After your
loan has been approved, your file will be reviewed and prepared for closing.
5. Closing
At the closing, you'll need to bring the original homeowners policy with a paid
receipt (as proof of insurance) and a certified check to cover the down payment
and closing costs.
Q. How much are closing costs and what is included?
A. Closing costs can vary from lender to lender. Typically costs range from
$600 to $1,200. The costs associated with your loan will be itemized in the Good
Faith Estimate. Closing costs can (but not always) include the following:
- Appraisal, title, underwriting, processing and recording fees.
- Tax servicing and assessment.
- Flood certification.
- Settlement.