1 - Understanding the process

This guide takes you through the steps of the home-buying process. Along the way I'll point you to checklists, easy-to-use planning calculators and other helpful information.

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2 - Organize your finances

Taking Stock

Assessing your assets, liabilities, income and credit tells you what you have to spend. A general guideline is two and a half times your annual income for a home, and no more than 28% of before-tax income for monthly housing debt (mortgage payments, property taxes, insurance, maintenance if you're buying a co-op or condominium, etc.). And if there are two incomes, so much the better!

You may be able to qualify for a mortgage loan, even if your individual situation is different from the standard ratios outlined above! We have programs that accommodate many financial situations. Please contact me today for a personalized assessment of your needs.

How much home you can buy is based on:

• The up-front amount you've saved for a down-payment and closing costs.
• The amount you can borrow based on earnings and debt. In addition to the 28% housing debt, other debt such as car payments and credit card balances should not exceed another 8%.

Additional Tips:

• Check your credit report to make sure there are no surprises. Now is the time to clear up errors and discrepancies. You may order your credit report directly from equifax.com.
• When you order a report from equifax.com, you are leaving wellsfargo.com. If you decide to do this, we will still need to obtain our own credit report when you apply.
• Don't take on excessive non-mortgage debt right before you apply.
• Get my Mortgage Checklist.  Start gathering the formal documents needed for your application and be one step ahead of the game.
• Keep copies of all documents in an organized file.

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3 - Ask about pre-approval

Ask me for your pre-approved mortgage amount!

Pre-approval is a written commitment from us assuring you of a specified loan amount (pending appraisal of your intended property). It gives you more clout than a pre-qualification. A pre-qualification merely determines what you can afford. A pre-approval is certified buying power before you shop for a home.

Having a pre-approved mortgage:

• Lets you shop with confidence
• Defines you as a serious buyer to sellers and real estate agents
• Gives you a big advantage over buyers who have not been pre-approved
• Accelerates the mortgage process

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4 - Find the right home

House-hunting can be exciting and fun — especially if you're armed with a pre-approval.

Before setting out:

• Conduct a cost-of-living comparison between your current area and the areas you are considering.
• Check out relocation information if you're moving to another part of the country.
• Prioritize the features you want in your future home.

Exploring many properties will give you a "reality check" and help you sort your housing "musts" from your "nice-to-haves."

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5 - Choose the best mortgage

Check out my online loan descriptions to help you understand the wide variety of options available. Contact me and we can work together to determine the best mortgage solution to fit your financial needs.

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6 - Apply with us

If you've gathered your documentation at the organization stage, you're practically there. Call me to start the application process today. As your home mortgage consultant, I can complete the application with you right on the phone.

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7 - Close on your mortgage

The Closing (or settlement) is the actual transfer of ownership from the seller to the buyer. At the closing, all parties meet to sign documents and exchange money. It's the day when we pay the seller the agreed purchase price, your mortgage is activated and the keys become yours!

Legal or Professional Advice
Closing costs and practices vary depending on your location, the type of property you're buying (house, condo or co-op), and individual circumstances. In some states, the entire closing process is transacted by a neutral third party, usually an escrow company, who is mutually chosen by the buyer and seller. In others, title companies customarily oversee the process. In the remainder, attorneys are engaged. Your home mortgage consultant can tell you what to expect in your state.

Understanding the Closing Process
As soon as you receive your Mortgage Commitment Letter (a written approval after appraisal requirements have been met detailing mortgage terms and fees, tax and insurance information and closing requirements) from us, you are ready to embark on the final path to home ownership.

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