There are several major distinct steps in the home purchase process, and several relate to the mortgage. It may be complicated for both new and repeat buyers. This blog details basic information about mortgage process for purchasing Las Vegas real estate and includes what you should know prior to beginning the process.
Mortgage Process For Purchasing Las Vegas Real Estate
A pre-approval is a preliminary analysis of your finances and credit score to estimate what you may be able to obtain for a loan amount. It verifies that you meet the preliminary requirements for a mortgage. Pre-approvals do not guarantee that you will be able to obtain financing, but is a typical first step in the mortgage process.
An application takes place typically after you have an accepted offer on a home. You may be required to furnish additional personal information. The details on the property are also submitted to the lender for review. They will request a copy of the Purchase and Sales contract in order to continue. Your contract may require that you complete an application within a specified time frame.
An appraisal is mandated by a lender (although buyers are often charged the fee for it) to determine the current market value of the property. Appraisers will compare your property to others that recently closed in the area within a specific time frame. A specific dollar value is provided. Essentially, the value of the home must satisfy the amount that the bank is loaning to you.
After your financial information and the details on the property are analyzed, the lender provides a commitment letter. This confirms that no major issues have been identified and that the lender is somewhat certain that the loan will result in final approval. There can be some conditions noted in the letter such as an employment verification and last credit check. It is therefore important not to complete major purchases or change your financial condition even after a commitment is issued as it may lead to a fall thru.
Clear to Close
A clear to close is basically the final approval of a loan. It affirms that all criteria have been completed and that the mortgage company can submit the information to the closing agent. This may occur merely days or hours before the planned closing date.
The closing involves signing of documentation and filing of information into public record. Be sure to bring acceptable identification and a money order or bank check for any amount you are paying. Personal checks or cash are ordinarily not acceptable. The exchange of funds takes place at or immediately after and the real estate will be officially yours!
Final Words of Wisdom
Deadlines are a critical facet of any real estate transaction, so make sure that you understand the deadlines and what you must do to satisfy each condition. Working with a competent mortgage consultant and real estate agent will be a huge help. They can provide you with advice and support, monitor deadlines, and make it a less stressful experience. As a local real estate consultant, I will offer assistance with the mortgage and overall real estate process. You may reach me, Arina Hanciulesco, at Realty PROS Las Vegas via phone at 702-306-4766 or email at firstname.lastname@example.org.