Choosing the right type of mortgage for your residential purchase can be complicated, which is why it’s critical to choose the right mortgage broker.
The right type of mortgage depends on more than a few factors:
- Your current financial picture
- How you expect your finances to change
- How long you intend to own your house
- What product makes you most comfortable
Our residential loan application process generally begins with an initial interview. One of our mortgage professionals will discuss your potential loan, asking relevant questions and understanding your needs. Ideally, it helps to do this before house hunting, to determine in advance how much you can comfortably afford and the mortgage amount you can qualify for.
Nobody knows your finances and comfort level better than you do. Ask your Blue Ray Financial representative help you review your fixed monthly costs, calculate payment figures, and estimate taxes and insurance (and Private Mortgage Insurance (PMI) if necessary). This pre-qualification step can save you time and trouble by making certain you’re looking in the appropriate price range from the start. Our regulators require us to specifically analyze your ability to repay the mortgage to make a good faith determination about the loan that is best for you.
This step is vital to making you residential purchase process run smooth. Before providing a pre-approval, we require a tri-merged credit report for each borrower. We also request accurate income and asset documentation. This information is included in your application and put through our automated underwriting system to tell us the loan amount for which you may be eligible.
Once you know what is affordable and have been pre-approved, you can start looking for a home.
Make an Offer
Once you find your dream home, you’ll want to make an offer on the property. Your realtor will work with you to present a competitive offer. It is important that your Blue Ray Financial officer and realtor communicate during this part of the process. For example, they will need to include any seller credits toward closing costs in the offer contract, etc.
After your offer is accepted, you’ll submit your loan application for underwriting. You’ll provide documentation to process your loan, such as pay stubs, bank statements and tax returns. It is very important to get this information to your lender as soon as possible, in order to meet your commitment date as stated in your purchase and sales contract. An appraisal on the property will be completed to ensure the value. Blue Ray Financial will begin the work of verifying all the information you’ve provided This process can take anywhere from one to four weeks, depending on the loan itself. We like to set realistic expectations for all of our clients in hopes of making the mortgage process go smoothly.
Some home buyers find the closing process to be one of the most intimidating aspects of buying a home or even refinancing. We get it – and we’re here to answer questions during each step, from start to finish. Prior to closing, you’ll receive a copy of the settlement statement that lists the final costs of purchasing your home. Bring this final amount in the form of a bank check to your closing. After you sign all necessary paperwork, your loan will be recorded. Your attorney will of course be at the closing to represent you and make sure that your loan closes on time and correctly.