There’s no doubt about it … the current mortgage transaction bares little resemblance to the transactionthat took place even a few years ago. The process has definitely evolved.
Much has been made of all the changes that have occurred. And I think that some of the talk has taken a toll on the psyche of those contemplating entering it. It might haven even scared a number of them off. That’s not good.
So, I decided a “Mortgage Anatomy 101” class regarding the mortgage process might be in order. Within my post, I’m going to try to break down andexplain the process from start to finish with the hopes that by doing so, it will take some of the fear factoraway. That potential Home Buyers (and those contemplating Refinance) will see that the process does NOT have to be painful or scarey.
I preface the following “Mortgage Anatomy 101” by saying that not all mortgage processes at all Lenders are identical. There is, however, a basic timeline for most new loans. Since the majority of all loans are Conventional, conforming (conforms toFannie Mae/Freddie Mac Guidelines), I will layout that process, and assume a Purchase transaction for the following.
I will also add that I personally believe that anyone even remotely considering a home purchase or Refinance should get in touch with a Mortgage Lender well in advance of starting their home search, especially if that Buyer is a First-Time Home Buyer.
My recommended sequence of steps allows Buyers ample time for Pre-Qualification … or at minimum a credit check, guidance for credit repair/improvement,and preparation to enter the financing process at maximized buying/credit potential at some point in the future. In most cases though, I find that the Realtor is still the first point of contact for those looking to Buy a Home … and the info provided below will reflect that.
E. Total Monthly Payment