Real Estate is an ever evolving entity and this year is no different. Although 2009 is probably the best year ever to purchase real estate, obtaining financing has been an obstacle for many buyers.
It is no surprise that lenders are as skittish about lending as buyers are skittish about buying, so when you do decide to take the plunge, make sure you are deligent about "dotting your i's and crossing your t's".
Your first step is to get pre-approved with a reliable lender. Your real estate agent can provide you a list of proven local lenders. Once you find the home you wish to buy then contact your lender to complete the application process.
Stay organized and keep copies of all documents requested by the mortgage originator. You may have to provide this documentation again if the underwriter or processor needs to review. Today, underwriters and processors are scrutinizing every detail, since lenders do not want any more bad loans.
Don't make any large purchases like a new car or new furniture (even though there are some great deals out there!) until after you close. Likewise, don't change jobs or make any lifestyle changes that will put up a red flag to the underwriter.
As soon as your offer is accepted, schedule your inspections immediately and start shopping for homeowners insurance (also known as hazard insurance) since your underwriter will require the insurance binder prior to closing.
In past years, we saw most closing take place within 30 days of executed contract, but since most loans are now FHA or VA, plan on a 45 day close.
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