There are many distinct steps in the real estate purchase process, and many relate to obtaining financing. It can be confusing for both first time and experienced home buyers. This blog offers important details on home loan process for purchasing Palm Beach FL properties and covers what you may want to know before initiating the process.
Home Loan Process For Purchasing Palm Beach FL Properties
A pre-approval is a preliminary review of your finances and credit score to determine what you may be able to obtain for a loan amount. It ensures that you meet the preliminary requirements for financing. Pre-approvals are not a guarantee that you will ultimately receive financing, but is an important first step in the mortgage process.
An application takes place usually after you have an agreement to purchase a home. You may be asked for additional personal information. The details on the home are also reviewed by the lender. They will require a copy of the Purchase and Sales contract in order to proceed. Your contract will typically require that you submit an application within a specified time frame.
An appraisal is ordered by a mortgage company (although you are generally carry the burden for the expense) to identify the current market value of the property. Appraisers will compare your property to others that recently sold in the area within a certain time period. A specific dollar value is provided. Basically, the value of the home must satisfy the amount that the bank is loaning to you.
After your personal information and the property details are reviewed, the mortgage company provides a commitment letter. This assures the parties that no major issues are present and that the lender is fairly certain that the mortgage will obtain final approval. There may be remaining conditions included in the letter such as an employment verification and additional credit check. It is therefore important not to make major purchases or alter your financial situation even after a commitment is issued as it may cause a loan to fall thru.
Clear to Close
A clear to close is basically the final approval of a loan. It affirms that all criteria have been satisfied and that the lender will submit the information to the closing agent. This may occur within days or hours before the anticipated closing date.
The closing includes signing of documentation and filing of information into public record. Be sure to bring acceptable identification and a money order or bank check for any monies due. Personal checks or cash are normally not acceptable. The exchange of funds occurs at or immediately after and the real estate will be officially yours!
Final Words of Wisdom
Deadlines are a critical part of any real estate transaction, so make sure that you know the deadlines and what you must do to comply with each one. Getting representation from a diligent mortgage consultant and real estate broker will be very important. They can provide you with advice and support, monitor deadlines, and ensure a more positive experience. As a local real estate consultant, I can provide assistance with the mortgage and overall real estate process. You may reach me, Sonny Solomon, at The Keyes Company via phone at 561-247-1047 or email at firstname.lastname@example.org.