CONGRATULATIONS on your decision to buy a home!!
1. To make an offer on a home you will need to submit with the contract proof of funds, if paying cash. If you are going to finance, you will need to submit a pre-approval letter for the loan. When getting pre-approved ask for a “good faith estimate” which will show:
- Closing costs
- Estimated pre-paids
- Mortgage payment P.I.T.I. ( which is principal, interest, taxes, and insurance)
- Taxes & insurance will be an estimate
- Interest rate
Very Important: Please make sure that you and your lender know when loan commitment is due. Please discuss this with me when we are working on your checklist.
2. If contract is contingent upon financing. Within ____ days from effective date (date of contract), make application with mortgage company/bank. Use this checklist to make sure you have everything you need before you begin your loan application. Having all necessary documentation up front saves time so your loan can close smoothly and quickly.
- 2 years of tax returns
- 2 years of W-2’s
- If self employed, 1099’s and copy of business license
- Most recent bank statements ( all accounts and all pages)
- Explanation (signed and dated) of any deposits over $1,000 other than normal pay into accounts
- Most recent pay stubs (minimum of 30 days)
- Copy of driver’s license
- Explanation (signed and dated) of any inquiries on credit report
- Mortgage Statement, Insurance Declaration Page and most recent tax statement for all other properties owned
- Divorce Decree and Separation Agreement (if applicable)
- Copy of Ernest Money Check & Purchase Contract
If conventional, FHA or VA loan, there are different guidelines. Ask your loan officer the difference between these types of loans.
- Credit Report
- Appraisal and Survey
- Pest Inspection – Possible Well & Septic Inspection
3. Get your Home Owner’s insurance and possibly flood insurance immediately – Do Not Wait. Getting home owner’s insurance today is not like in the past. Here is a list of things your insurance agent may ask you in order to give you a quote:
- If flood insurance is required, they may require an elevation certificate which is done by a surveyor
- Is this going to be your primary residence
- Age of roof
- What is the living square footage and the total square footage
- How far away is the nearest fire hydrant
- Do you have dogs
Make application and bind your insurance as soon as possible.
Insurance inspections that may be required and your home inspector may be certified to do: The insurance company may require a roof inspection, a 4 point inspection (Roof-Electric-Plumbing, HVAC) and/or Wind Mitigation Report. This may be required to be able to insure with specific companies or get discounts.
- Roof Inspection
- 4 Point Inspection
- Wind Mitigation Inspection may give you discounts
- Sink Home Inspection: If you want sinkhole coverage, there is an inspection performed by Citizens that takes a minimum of 30 days – discuss this with your insurance agent.
4. It is advisable to have your home inspected and re-inspected after repairs are completed (if any are needed) and before closing. Per the contract, you have____ days from effective date (date of contract) to have your home inspected from a licensed inspector and to present a report to seller (if you have asked seller to do repairs per the contract). Do not forget pest, septic or a possible water inspection too. You should have a copy of seller’s disclosure of material defects affecting home.
5. If there are deed restrictions, you should receive a copy
6. Property Taxes: Though property tax amounts are used as a guideline, property will be re-assessed with a new sale.
7. Premises cannot be occupied before closing. Utilities are to be put in buyers name on the day of closing.
8. HUD/ Settlement Statement should be reviewed.
9. Bring Driver’s License to closing!! Unless your closing is at Southern Security Title Services, you will be wiring your funds (what the Title Company will require for the cash you need to close). Please contact the closing agent for them to send you via email wire instructions.