PURCHASE A HOME

Steps in Buying a Home

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    Get Prequalified

    The first step to purchasing your new dream home is to get prequalified in order to know how much of a home purchase you can qualify for.

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    Find & Negotiate a Home Purchase

    After you get prequalified, your Mortgage Banker at Direct Banc Mortgage will supply you with a pre qualification letter which will be a very powerful tool to help your real estate agent find and negotiate a purchase for your dream home. This pre qualification letter will be a very powerful tool which will help get your offer accepted in todays competitive sellers market.

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    Finance a Home Loan

    Once your real estate agent negotiates a purchase agreement for your dream home, Direct Banc Mortgage will take over and start the mortgage process and insure we close on time.

Mortgage Prequalification

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    Know What Price Range You Can Afford

    When you get prequalified for a home loan you will know exactly how much you can afford to purchase a new home. When working with your Mortgage Banker at Direct Banc Mortgage they will be able to calculate a debt-to-income ratio to determine the affordability.

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    Identify & Eliminate Any Credit Issues Early On

    When prequalifying for a home loan there may be credit issues that you may not be aware about. Direct Banc Mortgage will be able to advise you to clear up any issues so you can move forward with a home purchase.

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    It Will Help You With Negotiating Power

    Once your real estate agent knows how much you qualify for it will help them be aggresive in the home search and negotiating the best possible price.

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    It Will Give Sellers Confidence To Accept Your Offer

    When your real estate agent can supply a pre-approval letter from Direct Banc Mortgage to a seller it will give them the confidence that you are finiancally sound and stable and will eleminate any worry that the seller may have with falling out of escrow because you may not qualify. A pre-approval letter is a power tool to help you get an offer accpted in todays competitive sellers market.

Mortgage Loan Process

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    Application

    This is the first step that gives your Mortgage Banker the information they need to help you decide on a great loan product tailored to your needs. It is very important that the information on the application is complete and accurate to prevent the loan from being denied later in the loan process.

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    Pre-Qualification

    You must prequalify for a home loan in order to know how much of a home purchase you can qualify for and will help your real estate agent for better leverage in negotiating price.

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    Documentation

    In order to put a loan package together your Mortgage Banker at Direct Banc Mortgage will request from you certain documents that must be sent in a timely manner which can hold up the mortgage process if delayed.

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    Appraisal

    The apprisal will be ordered by Direct Banc Mortgage as soon as the underwriter grants a loan approval contiengent on conditions. The appraisal is preformed to insure that the value of the home is consistant wth the purchase agreement for a purchase or the loan amount for a refinance. The appraisal typically takes 5 business days to be completed and reported back to us.

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    Title Report

    The title report is ordered by your real estate agent for a home purchase transaction or by your Mortgage Banker for a refinance. The title report is intended to show if there are any liens or other problems with the property in order to protect you.

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    Submission

    As soon as your Mortgage Banker collects all the documents needed for a loan package it is then organized and sent to an underwriter for approval. An approval typically takes from 24 to 48 hours.

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    Conditions

    When the underwriter grants an approval there are usually some conditions. These conditions may be “prior to doc” or “prior to closing.” It is extreamly important that all conditions be taken care of with your Mortgage Banker immediately in order to avoid any delays in loan signing. Once all the conditions are collected by your Mortgage Banker they are sent to the underwriter for final review and approval which typically takes from 24 to 48 hours.

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    Loan Docs & Signing

    Once the underwriter gives the final approval, loan docs will be ordered by the funding department which will be sent out to the escrow company to be signed by the borrower. The escrow company sends the loan docs by a mobile notary to make it convenient for our clients. Loan documents are the mortgage documents that you will sign to close and fund your loan.

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    Funding & Recording

    Once the loan docs get signed they get sent back to escrow where escrow packages them up and sends them back to Direct Banc Mortgage. The funder then checks all the signatures and makes sure all funding conditions are met. Once the funding conditions are approved by the funder the loan will be funded and recorded. This typically takes 24 to 48 hours after signing loan Docs. Overall the entire loan process takes from 14 to 21 days depending on how quickly the borrower works with their Mortgage Banker at Direct Banc Mortgage.

Choosing The Right Loan

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    We Are Here To Help You Choose The Right Loan For You

    After you prequalify for a home loan with one of our licensed Mortgage Bankers they will be able to assess your specific situation and will be able to advise you best with the right type of loan that you would be able to qualify for and fits your needs.

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    Conventional

    A conventional loan is a type of mortgage in which the underlying terms and conditions meet the funding criteria of Fannie Mae and Freddie Mac. About 35-50% of mortgage are conventional mortgages. Conventional mortgages may be fixed-rate or adjustable-rate mortgages.

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    Government-Backed

    A government-backed mortgage loan is a loan that is subsidized by the government. It protects lenders against defaults on payments, which makes it much easier for lenders to offer potential borrowers lower interest rates. The primary aim is to make home ownership affordable to lower income households and first-time buyers.

    There are various types of government-backed loans, which a Mortgage Banker at Direct Banc mortgage can educate you on. The most popular government backed home loan at Direct Banc Mortgage is the FHA loan.

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    Non-Conforming

    A non-conforming loan is a mortgage that does not meet the guidelines of Government Sponsored Enterprises such as Fannie Mae and Freddie Mac, and therefore cannot be sold to Fannie Mae or Freddie Mac. Some of the guidleines set by Government Sponsored Enterprises are maximum loan amounts, type of properties, down payment requirements and credit requirements.