THE POWER OF PRE-APPROVAL


PRE-APPROVAL  This is the first step in the home buying process. It is vital to be pre-approved in today's market when sellers are receiving multiple, competitive offers. A pre-approval will add power to your offer and shows sellers you are serious. To get pre-approved, you will provide documentation, and receive a conditional commitment in writing for an exact loan amount.
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HOME BUYING FINANCING STEPS
1.   Get PRE-APPROVED for a mortgage. You will need the following documents:
  • W-2’s (2 most recent)
  • Bank statements 
  • Paycheck stubs 
  • Two forms of ID (one photo)
  • Recent mortgage statement, taxes and insurance receipts for each property you own
  • If you recently sold a home you'll provide the HUD 1 from that sale
  • Tax returns if your income varies as a result of commission earnings, bonus earnings, etc. 
  • Self employed documentation may vary

2.   With a Realtor, find your new home and execute an Agreement of Sale.
3.   Lock in interest rate.
4.   Receive and sign loan packet.
5.   Order appraisal.
6.   Underwriting conditions / clarifications.
7.   Receive the clear-to-close.
8.   Review closing disclosure with your Realtor.
9.   Settlement day “Move in!”


WHAT YOU NEED TO KNOW

DON'T MAKE ANY MAJOR PURCHASES OR APPLY FOR NEW CREDIT of any variety. Did you know that applying for a credit card could lower your score by as much as 5 points or more? This can also change your income to debt ratio which can put you at risk for delaying settlement or denial of loan.

DO WORK WITH A BROKER   A mortgage broker can shop around to various lenders and numerous products to find the best product for you. A Broker has more flexibility in finding the right product just for you.

DO BEWARE OF THAT LOW INTERNET RATE   Be careful when comparison shopping for a mortgage on-line. You might find a low interest rate, but that low rate can come with extremely high closing costs and fees. Make sure you receive a good faith estimate from your lender. This should give you a good idea of the true cost of your loan. Additionally, you must be careful of scams. Never send any money or sensitive information over the internet unless you are certain of who you are dealing with. It is wise to use a lender that is local so they can be committed to you and your closing date timeline.

DON'T LET A POOR CREDIT HISTORY HOLD YOU BACK   We will help you. Everyone finds themselves in tough financial situations at one point or another. Don’t allow previous problems to discourage you from trying for a fresh start.

IMPORTANT WIRE FRAUD INFORMATION BUYERS NEED TO KNOW


What is REAL ESTATE WIRE FRAUD? Hackers try to steal money that is being wired for a real estate purchase by emailing fake wire instructions to the buyer before settlement. Criminals will steal an email address and logo to make it look like the email came from your real estate agent or title company. If you follow these fake instructions, the money will go into the hacker’s account.  Follow these tips to protect your money:


BE VIGILANT
• Call, don’t email: Confirm your wiring instructions by phone using a known number before transferring funds. Don’t use phone numbers or links in the email.
• Be suspicious: Delaware Valley Financial Mortgage and Beiler-Campbell Agents DO NOT email wiring instructions. And, It’s very uncommon for title companies to change wiring instructions.


PROTECT YOUR MONEY
• Confirm everything: Ask your bank to confirm the name on the account before sending a wire.
• Verify immediately: Within 1 hour, call the title company or real estate agent to confirm they received your money. 
WHAT TO DO IF YOU’VE BEEN TARGETED
• Immediately call your bank and ask them to issue a recall notice for your wire
• Report it to www.IC3.gov and call your regional FBI and police
• Detecting that you sent money to the wrong account within 24 hours is the best chance of recovering your money.