Purchase
Welcome Home!
When you’re ready to purchase a primary home, a vacation home and or an investment property, you’ll want a professional who’s looking out for your best interest. Someone to be your ALLY and guidance, educating you on the available programs and strategies that will be most beneficial to you, help you understand the entire process from start to finish and support you every step of the way. We don’t disappear after the closing, we are your ALLIES for life, should you need any assistance or support with any related issues we are that resource for you.
How It Works
Prequalification
We’ll get to know you, learn about your goals and dreams for your home purchase journey, gather information about your situation, what is important to you and what you’re looking to accomplish. We’ll go over mortgage programs and rates, your assets and liabilities, and your financial history and answer any questions and or concerns you may have.
Application & Required Documents
Next, we’ll walk you through the process of gathering your documents and filling out your application. Our loan application is done online and very simple and straightforward, however we’re happy to assist you should you need it.
Credit Report
Unlike other companies, we understand that many people don’t like to run a credit check, especially if it can be avoided. We’re different. First, we’ll review your income and assets, verifying your eligibility. Once we’ve covered the basics, and you meet the criteria to be a good loan candidate, we’ll pull your credit report, finalizing your qualification so you can receive your approval letter. Don’t have great credit? Don’t worry, we aren’t all or nothing. We’ll work with you to address any issues that need to be corrected to maximize your chances of success.
Getting Your Pre-Approval Letter
Preapproval letter is issued after the examination of your income, assets and credit score. The letter will include what loan programs you could be approved for, how much you can borrow and what your interest rate may be.
Find Your Dream Home
With the help of a trusted realtor, you begin looking for THE ONE–the house that will become your home! Next, submit your offer and get your offer accepted. If you need a real estate agent we can refer you to a few knowledgeable realtors that will take good care of you.
Loan Estimate
This document explains your estimated interest rate, monthly payment, closing costs for your loan, and other important loan details
Processing & Underwriting
Once we have all the necessary paperwork and have completed the necessary prequalification steps, we’ll submit your file to the lender. The lender will begin carefully processing and verifying your documents to issue an initial approval. Once deemed acceptable, the loan is marked “approved.”
Initial Approval
If you meet the initial requirements, the lender will issue a conditional approval, which means you’re approved as long as you provide further requested documentation. We will work with you to gather any documents
requested from third parties on your behalf and explain which documents are required to be provided by you and how to acquire them.
Home Inspection and Appraisal
The property will need to be inspected for potential problems and appraised to assess the value of your intended property. Your realtor will order and schedule the inspection on your behalf and we will order the appraisal through a third party. Once the appraisal is ordered you will receive a link via email to pay for the appraisal; after the payment is made the assigned appraiser will reach out to the homeowner/s in order to schedule a time and gain access to the property to conduct the appraisal.
Final Approval
The lender will conduct a final review for all the requested documents initially and additionally and will issue a final approval, which means we’re ready and clear to close!
Closing Disclosure
The Closing Disclosure will be provided to you about three business days before closing or even prior. It gives you final details about your loan, including loan terms, your estimated monthly payments, and your closing costs.
Closing
After the final approval, the title company will schedule a time for you to go in and sign your closing documentations. The title company will also provide payment instructions for your cash to close, which include your down payment, pre-paid items: taxes, insurance and closing fees which include third party fees, such as appraisal, title feel, transfer fee and more.
Move In Day!
You’ve made it! You’re now a homeowner. Congratulations!
Get Prequalified
A Prequalification Can Take Just Minutes!
Benefits of Getting Prequalified
Tells you how much you can afford.
Shows you’re a serious buyer.
Improves buying and negotiating power.
Helps you learn about various loan products and choose the most beneficial one for you.
The Prequalification Process
Requires light financial documentation, like bank account balances and income information.
In some cases, uses a soft credit check to understand your creditworthiness.
You’ll receive a prequalification letter explaining how much the lender is willing to lend.
What Documents Do I Need For My Application?
Your lender will request lots of documentation to verify your loan eligibility. It can feel like a lot of information to gather, but don’t worry, Loan Allies is here to help!
• Government-issued photo ID
• Social Security card
• SSA-89 (authorization to release SSN verification) if applicable
• Tax returns
• Pay stubs, W-2s, or other proof of income
• Bank statements
• Proof of assets
• Proof of earnest money
• Credit history
• Award letter (SSI, child support, welfare, alimony) if applicable
• Retirement/investment income if applicable
• Residence history (either renters history or mortgage payment history)
• Employment history
• Credit explanation letter if applicable
• Bankruptcy information if applicable
Depending on your employment situation and type, you may also be asked for further documentation.
Benefits of Owning a Home vs. Renting
Maybe you’re thinking to yourself, “I only pay X dollars in rent. That’s way less than I’d pay if I had a mortgage!” But you’re only considering part of the equation. Although it can seem more expensive up front, owning a home can be a better financial investment down the line.
RENTING
Financial Responsibilities
• monthly rent
• utilities (electricity, gas, water)
• renters insurance
Pros
- flexibility
- opportunity to save money in the short term
- not responsible for home repairs
- not responsible for lawn maintenance
Cons
- each payment is “money down the drain,” because rent doesn’t build equity
- rent can increase
- no stability – your rented property may change owners at any time
- no tax benefits
- you can’t make changes to the property without your landlord’s approval
- pets may not be permitted
- your rental home is not an asset
OWNING
Financial Responsibilities
- monthly mortgage payment
- utilities (electricity, gas, water)
- home repairs
- lawn care
- homeowners insurance
- property taxes
- private mortgage insurance
Pros
- long-term stability
- you own your home
- each payment builds equity
- tax incentives
- freedom to do whatever you wish with your property
- freedom to have pets
- privacy
- your home is an asset
Cons
- significant investment
Weighing Your Options
The decision to purchase a home or continue renting ultimately depends on your individual situation. But if you’re financially stable, gainfully employed, and interested in building assets, home ownership usually puts you at a major financial advantage in life.
Schedule a Free Consultation
Ready to get started? There’s ZERO cost and ZERO obligation.