HICKSVILLE, N.Y., March 19, 2019 /PRNewswire/ -- If you're interested in purchasing a home but don't have piles of cash laying around, you're likely to pursue a mortgage. This home loan will allow you to purchase the property you want and pay it back for typically 15 or 30 years. Although a mortgage is very common in the home buying process, there are still requirements and milestones you should be aware of. Real estate litigation attorney Long Island, Markotsis & Lieberman, Esq., list and explain the steps to finance a home.
To begin the process, you'll need to shop around for a mortgage. Many first-time buyers tend to wait until they've found their dream home to start the process but that can be a vital mistake. Interest rates and closing costs are constantly changing and you want to make sure you know exactly what you need to ensure another buyer doesn't swoop in on the property.
With that being said, it's important to get pre-approved for a mortgage so when you want to make an offer on a house, you'll be prepared. The lender you chose will do a credit check and look into several financial factors to determine whether they would give you a loan and for how much. A pre-approval letter shows the seller you're interested and you're serious. Without it, the seller will have no idea if you can actually afford their property and are unlikely to accept your offer. Remember, though, that a pre-approval is not final approval.
Once you've made an offer and it's been accepted by the seller, you'll sign a sales contract and take steps to finalize your mortgage. The lender will also order a home appraisal to see what the market value of the property is. To protect the lender, the appraisal needs to be for at least the price you are paying for the property., This ensures that if the lender had to foreclose on the property, they would still be able to make their money back on the loan. It's important that the appraisal comes at the price you paid or above for this reason.
Finally, once bank approval is obtained, you will have your closing. This is where the buyer, seller, lender representative, attorneys, and any others involved in this process meet to sign all the paperwork, transfer the final dollar amounts and hand off the keys. This is also where you will get your Deed, which is the proof you now own the property.
The process of financing a home may sound daunting and time-consuming. A real estate attorney will be a great asset to your team when going through this process as they can answer any questions you may have and provide advice and guidance to protect you, from the pre-approval to the closing.
About Markotsis & Lieberman, Esq.: Markotsis & Lieberman, P.C. Long Island Real Estate Lawyers practice areas include real estate, litigation (commercial and civil), business formations, agreements and transactions, and wills, trusts and estates. Our team of seasoned attorneys is here to guide you through every step of the legal process providing personalized attention to every client. When you're facing a complicated legal situation, our team of legal experts is there to fight for your rights.