There are lots of specific steps in the real estate buying process, and some relate to the mortgage. Getting a mortgage can be complicated for first time and experienced buyers. This post gives you information about the steps for purchasing Anderson SC properties. I will cover what you will need to know before beginning the real estate buying process.
Mortgage Steps For Purchasing Anderson SC Properties
A pre-approval is a preliminary evaluation of your financial information and credit history. It is used to calculate how much mortgage you may be able to handle. It also confirms that you meet the primary requirements for getting a mortgage.
Pre-approvals do not guarantee that you will get a loan. However, they are the normal starting point in the mortgage process. Please do not over look how important getting pre-approved is!
You will submit a formal application after you have an agreement to buy a property. You’re likely to need to provide even more information and documents. Failing to get anything the lender requests in a timely manner could cause delays!
The facts about the property are also evaluated by the mortgage lender. They’re going to ask for a copy of the Purchase contract also.
Your contract requires that you submit an application before a specific date. Submitting a mortgage application by the deadline is not a request. It is a must!
Completion of an Appraisal
An appraisal will be ordered by your mortgage lender to determine the current market value of the property. The lender may order the appraisal but you normally pay for the appraisal.
Appraisers compare the property with similar properties that sold in the same area recently. The current market value of the property must justify the mortgage.
After your information and the property details are analyzed, the lender issues a letter of commitment. This verifies there are no major issues and the mortgage company is almost sure that the loan will close.
There will be additional conditions specified in the letter. These include employment verification and another check of your credit report.
It is important not to make any big purchases, apply for credit, or change your financial situation after a letter is issued. This could cause you to NOT get the mortgage! Also changing jobs or quitting your job is a HUGE no-no!
Clear to Close
Hearing the phrase “clear to close” is one of the most beautiful things in a Realtor’s life. A clear to close is essentially the final approval for financing.
It confirms that every requirement has been meet and the mortgage lender can send the file to the closing attorney. Sometimes this happens the day before or the day of the anticipated closing.
Nothing like making you sweat until the very last minute, right?
In South Carolina, the closing or settlement is performed by an attorney. In some states, title companies do the closing or settlement. It usually happens in the attorney’s office but not always.
The closing requires signing contracts and forms. You will be amazed at how many times you will sign or initial paperwork! The closing attorney will record all of the required documents at the Registry of Deeds.
You need to know exactly where the closing is and make sure to get there on time! Your Realtor will be able to help you with the location of the closing.
You must bring acceptable identification and a certified check for any amount payable at the closing. Personal checks or cash are NOT acceptable!
The closing attorney’s office can tell you how much to have the certified check should be for. Do not wait until the last minute to get the certified check as you may have to wait at the bank for a manager!
The Take Away
Now you know the steps to getting a mortgage in the Anderson SC area!
Remember, deadlines are a fundamental part of buying and selling real estate. Make certain you know the deadlines and precisely what you must do to meet each of them.
Having an experienced mortgage professional and a Realtor helping you is critical. They can advise you, keep track of deadlines, and reduce stress while helping you get the best deal.
If you have any questions about buying real estate in the Anderson SC area, please do not hesitate to email me!