1. When purchasing a house, it's to have a dedicated team of professionals by your side. This includes a knowledgeable real estate agent, a reliable loan officer, a thorough house inspector, an experienced insurance agent, and an efficient escrow officer. Each member plays a vital role in a smooth and successful transaction. With their expertise, you can navigate the complexities of home buying with confidence.
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2. It’s crucial to have a detailed discussion with a loan officer to obtain a preapproval letter. Through this conversation, the loan officer can identify the most suitable loan program for your situation and provide estimated rates and fees. To secure a preapproval letter for a conventional loan, a full-time employee will need to submit a recent paystub, while a self-employed individual will need to provide one or two years of tax returns.
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3. The preapproval letter will help you determine the dream home you can afford. If the listing agent is satisfied with your offer, they will accept it. Once you sign the contract, you are legally bound by the agreement, and the timeline begins for your option period and third-party financing addendum. Finish the house inspection and renegotiate if there are issues from the house inspection.
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4. Have your loan officer provide a Loan Estimate (LE) based on the contract, ensuring the rate covers the closing date. To compare rates effectively, review the rate and calculate the associated fees by adding the lender's charges (Section A on the LE) and the lender's third-party charges (Section B), then subtracting any lender credits tied to the rate (found in Section J).
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