Getting a mortgage may seem pretty straigthtforward and easy but there are a lot of hurdles and obstacles both before you offer on a house an when in escrow. As the escrow process can be stressful on it’s own, it’s best to get as much of the loan process done beforehand as possible.
Here are five essential steps that many buyers/borrowers may not think about.
- Get preapproved – In the South Bay it’s a seller market at the moment and bidding on a home can be very competitive. A preapproval letter is expected fro a buyer and without one your chances of getting the home are very limited.
- Avoid Appraisal Issues – Lenders will require an appraisal as the home serves as collateral and they want to make sure you’re not buying it above market value. A good realtor will help do everything possible to make sure the appraisal goes well.
- Avoid Credit Missteps – Your credit score can’t change dramatically during escrow so avoid big purchases, high credit card balances and opening new credit cards or lines of credit. If you’re moving money around talk with the lender and realtor first.
- Review the CD – The CD is the closing disclosure and is provided by the lender. It spells out all of your costs and fees. Read it closely but don’t take too long. They need to provide the CD three days prior to closing and if there are any delays…you may not close on time…even if you don’t want all three days.
- Get the underwriter what they need….quickly. Before the loan can close you need underwriter approval. This can be a long and ardous process but you can help. Provide the underwriter any requested/required documents as quickly as possible.