MARYLAND AND NORTHERN VIRGINIA REAL ESTATE MORTGAGE INFORMATION FOR HOME BUYERS.
Buying real estate in Maryland and Northern Virginia and getting a mortgage loan is complicated. The Contract of Sale is about 10-15 pages on Northern Virginia and in Maryland may be up to 30+ pages with the Contract and necessary locality, inspection, loan addenda. Your Buyer's Agent will review the Contract of Sale and all addenda when you prepare your offer to the seller.
Real estate in Maryland and Virginia is expensive compared with many other areas in the United States. Buying a home and getting a mortgage loan, in Maryland or Virginia is even more complicated when home buyers don't understand the home loan process. We'll try to make is as easy as possible. However, borrowing $$Thousands or Hundreds of Thousands of Dollars is not a minor matter. Borrowing money is a very serious matter and we treat it as such. With some education and guidance from an experienced real estate agent, mortgages can be made easy to understand. We can help. We sell many homes every year and we help our real estate buyers with the mortgage process from pre-qualification through settlement.
We will describe the mortgage process further down this page, but first, you should understand what a mortgage is and how it works. The procedure will vary little from lender to lender, but since the procedure is basically simple, you just need to understand that:
- Lenders lend large amount of money.
- Lenders want to lend to folks who will repay the loan.
- Lenders secure their loan to you with a lien against your property.
- If you pay your monthly mortgage payment, every thing is fine.
- If you default, the lender may foreclose the property.
Sounds simple and it can be simple with an agent who will explain the loan process to you step by step. Unless you've obtained a mortgage loan in the past, most buyers do not understand why lenders need particular information.
The first thing a loan officer will do is review your credit report. This is important because it will determine your qualifying ratio and the loan officer will discuss they different types of loans available to you. Your Homefinders.com agent will also discuss types of loans with you since it may help determine the price range and type of home listings where you can get the type of home you desire.
WHAT KIND OF DOCUMENTATION WILL I NEED FOR MORTGAGE APPLICATION?
Generally, the documents needed will verify your income and debt. The list below is the minimum for VA, FHA and conventional loans.
- Past two years W-2 Forms
- Current address
- Employment addresses
- Recent bank statements
- Name and address of current creditors
- Social Security number(s)
- Certificate of Eligibility for VA buyers
- For self employed, 2 years tax returns
Your lender will have a copy of the Contract of Sale for the home you are purchasing. Your lender will process the loan and have the mortgage approved prior to the date of settlement date in the Contract. The lender will send the proceeds of your home loan to the settlement company along with instructions to the title company about what charges are and the title company will conduct the settlement meeting. You sign the documents accepting the loan, the sellers signs the deed over to you, you get the keys to your newly purchased home. Now, wasn't that easy??
Courtesy, Lenn Harely, Broker, Homefinders.com. 800-711-7988. Serving home buyers in Maryland and Northern Virginia from home search to settlement. Contact us for a home buying adventure.
Friendly and experienced Buyer's Agents who know the area are ready to help you.
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Lenn this is great information for all buyers. It really is imperative that they need to have all their information ready before they go out looking at homes. Self employed may need to jump through a few more hoops.
This is so cojmprehensive. I love your blogs. You are the cream that comes right to the top.
Lenn - I'd say every buying seeking a loan ought to read this whether in MD, VA or anywhere else. We do things a little differently here in A with closing but the overall process is much the same. Too bad some mortgage folks don't take the care and effort to explain their side of the process.
Jeff