Few consumers are in a position to pay cash for their new home. Even if you are, financing your home purchase probably is better than paying cash, since conservative and balanced investing historically pays a significantly higher rate of return than your mortgage interest rate.
But if you’re like most folks, you need a mortgage anyway, so here’s the basic process:
Initial Qualification and Pre-Approval
Initial qualification and pre-approval requires a simple 10 – 15 minute phone interview.
No matter how high your income, credit score or cash on hand, you benefit from being qualified for the mortgage you expect to need. First, you want to verify your ability to buy a property in the price range you desire. Second, you want to demonstrate to your real estate agent that you are a serious buyer, so they know their time and effort finding a property that matches your needs won’t be wasted by a credit denial. (This happens surprisingly often, and understandably it drives agents crazy!) You want your agent to prioritize you as a client.
A pre-approval enables you to identify the exact documentation required to underwrite your file. Having an accurate documentation checklist – or, even better, furnishing your documentation - in advance enables you to can close the transaction quickly once you identify the property you want. This is important. Your ability to close quickly - and, especially, having a fully pre-approved file - can make the difference between whether or not you get the home you want, because sellers with competing offers will choose the pre-approved buyer who is ready to close over one who is not, sometimes even at a lower price.
Underwriting confirms that you are ready to close, by verifying the qualification and pre-approval with the documentation required to verify your income, employment, available funds, etc. We can underwrite your file in advance (which makes you a more powerful buyer) or after you have entered into your agreement of sale. We use all available modern technologies, and minimize your effort by requesting only the documentation required for your specific circumstances. Your application forms can be e-signed, and documentation may be uploaded, emailed or faxed, whatever is easiest for you.
When it comes to mortgage loan programs, there is no “one-size-fits-all”. The right loan program depends on several factors: How long will you stay in the home? Are we currently in a low-rate or high-rate environment? What is your investment strategy? Is your income likely to increase, remain stable, or decline? Will you be taking on a lot more (or less) debt in the future? We make sure you know your options, and explain the relative risks and cost benefits associated with each.
We not only make sure you make an informed choice of loan program. We also make sure you receive the loan with no lender fees. None. You pay only the cost of your appraisal and credit report. And of course Home Run will meet or beat legitimate no-fee offers from competitive lenders.
Interest rates rise and fall with the market. As an added service, Home Run includes a no-cost refinance if rates improve in the first five years after your home purchase. This helps ensure that you minimize your mortgage cost going forward, regardless of where interest rates are at the time of your purchase.