1. Prequalification
Meet with us to learn about closing costs and payments, and to find a budget and program that works for you. Examples of typical items during the processing of your application are:
- Your last two years of W2s
- 2 most recent pay stubs
- 2 most recent bank statements
2. Home Search, Purchase and Sales Agreement
Enlist a Realtor to assist you in searching for a home. They have good insight on the real estate market in the area. Once you have made your selection your real estate agent will write up a contract for both you and the sellers to sign. This will outline and bind all dates, deadlines, and contingencies. Most often, a deposit is required. This is usually refundable if there is an issue with inspections, appraisal or financing.
3. Home Inspection
We recommend that you have a home inspection completed but it may not be required. A home inspector will look to find any issues or code violations with the property.
4. Mortgage Application & Disclosure Package
Upon signing a Purchase and Sales Agreement contact SBW or click here to apply. Your SBW mortgage specialist will review your application, credit report, and appropriate disclosures, and loan cost estimates will be provided to you. Based on the information that you supplied, you may receive a conditional commitment letter outlining a list of any conditions that need to be resolved prior to finalization of the purchase.
5. Attorney/Title Work & Appraisal
We will choose a closing company to research and ensure a clear title for the property you have chosen. An abstract will be done to determine the legal owner of the home and will also reveal any mortgages, liens, judgments or unpaid taxes that will need to be cleared prior to closing. In addition, the bank orders an appraisal will be ordered to determine the value of the property.
6. Home Owner’s Insurance (Hazard Insurance)
Select an insurance agency to provide homeowner’s insurance for your new home and provide this agency’s contact information to your SBW mortgage specialist. We will work with them to get the proper coverage for your home. Your first year’s premium will need to be paid prior to closing and depending on the property, Flood Insurance may be required.
7. Finalization of Conditions
SBW’s mortgage team will work with you to ensure that all terms set in the commitment letter are finalized. Once we receive all conditions and they are deemed to be satisfactory, your loan will be “cleared to close.” This must happen no less than ten business days prior to your mortgage loan closing date.
8. Closing Disclosure
You will get a copy of the final closing disclosure showing the breakdown of costs and money you will need to bring to the closing. These funds will need to be in the form of either a Treasurer’s Check or wire transfer requested by the loan closing team. You will need an acceptable form of government issued ID with you as well.
Note: Please do not wire any funds unless you have called the title company you are working with to confirm the correct wiring instructions and account details.
9. Closing
A representative from the closing agency and your SBW mortgage specialist will be at the closing to go over the paperwork and loan documents that are required to be signed by you and the seller. All money is distributed at this time and the deed will then be recorded with you as the owner of record at the registry of deeds.
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