e-Newsletters (E-Access)
8 Steps to Home Ownership
You’ve decided it’s the right time to purchase a home, but now what? Buying a home can be both confusing and overwhelming, especially if it's your first time. We want to help you better understand the complete process, including who's involved and what you will need to reach your end goal of being a homeowner.
Step 1: Application & Pre-Qualification
In today's real estate market, it’s a huge advantage to be pre-qualified for financing before you start looking for a property. It can also help to determine How Much Home You Can Afford and it assures real estate agents and sellers that you are a qualified buyer.
Applying for a mortgage loan will require that you have significant financial documentation to prove that you can afford the payments. A loan officer will need to review employment history (pay stubs and W-2’s), other various income (bonuses and commissions), credit score, monthly obligations and more to determine the amount for which you qualify as well as your ability to pay back the loan.
Once all the documentation has been considered, the lender will provide you with a pre-qualification letter so that you can begin searching for your dream home.
Step 2: Purchase & Sales Contract
There are many options to consider when looking for a home, including which communities and neighborhoods you'd like to live in, what style home you prefer and also the price range at which you can afford. A real estate agent can help you prioritize your wants and needs in order to find the perfect home. Once you find the perfect home they can also help you with writing up an offer to purchase.
Step 3: Appraisal & Inspection
When you, the borrower, request a loan from us, the lending institution, we then must schedule an appraisal. The independent appraiser visits the property, researches comparable sales data in the area of the property and submits a report to us with their analysis of the property value.
Many people also request that an inspection be done on the property prior to the sales contract being finalized. We recommend this to home buyers to ensure that they are aware of any defects in the home that might affect the value and therefore the selling/offer price. An inspector works for you (and thus is paid by you) and is usually trained in construction to look specifically for defects and functionality issues that may not be obvious, except to an expert.
Step 4: Underwriting
Now you’re on the fast track – Vermont Federal underwriters will verify all aspects of the loan. During this time we may need to request additional information for the loan file.
Step 5: Commitment
Once all the information is verified, a commitment letter is issued from us to you. This letter acknowledges that all information has gone through the underwriting process and that we are committing, if all other conditions are satisfied, to issue the mortgage loan.
Step 6: Title
We will then request a title report from the attorney. The attorney will research the town office to review title history, zoning, compliance and existing liens on the property to assure that the current seller does in fact own the property and has a right to sell it.
Step 7: Insurance
A home-owners insurance policy must be obtained and pre-paid for one year on the property. A copy of proof of insurance will need to be provided on or before the closing.
Step 8: Closing
Congratulations! Closing is the final step in the home buying process and makes the property officially yours. Closing cost estimates will be provided to you within one business day prior to closing. All closing costs are due at the time of closing. If all documentation and payments are made, you are the owner of a new home!
Click Here for a sample fee worksheet for a property sold at $220,000 with a 5% down payment at a 4.375% interest rate to see the types of funds you might need to close.
Meet Our Mortgage Officers
If you are interested in learning more or wish to obtain a pre-qualification from Vermont Federal Credit Union, please contact our Mortgage Officers. You may also request a FREE copy of our Home Buying Member Workbook, which provides helpful tips and worksheets to guide you through the home buying process.
Vermont Federal Credit Union offers its monthly membership e-Newsletters (E-Acess) that are filled with promotions, finance-related articles and tips, inside information about Vermont Federal sponsored events and more. Contact a Member Service Representative at (888) 252-0202, Option 3, to update your email information.
8 Steps to Home Ownership
You’ve decided it’s the right time to purchase a home, but now what? Buying a home can be both confusing and overwhelming, especially if it's your first time. We want to help you better understand the complete process, including who's involved and what you will need to reach your end goal of being a homeowner.
Step 1: Application & Pre-Qualification
In today's real estate market, it’s a huge advantage to be pre-qualified for financing before you start looking for a property. It can also help to determine How Much Home You Can Afford and it assures real estate agents and sellers that you are a qualified buyer.
Applying for a mortgage loan will require that you have significant financial documentation to prove that you can afford the payments. A loan officer will need to review employment history (pay stubs and W-2’s), other various income (bonuses and commissions), credit score, monthly obligations and more to determine the amount for which you qualify as well as your ability to pay back the loan.
Once all the documentation has been considered, the lender will provide you with a pre-qualification letter so that you can begin searching for your dream home.
Step 2: Purchase & Sales Contract
There are many options to consider when looking for a home, including which communities and neighborhoods you'd like to live in, what style home you prefer and also the price range at which you can afford. A real estate agent can help you prioritize your wants and needs in order to find the perfect home. Once you find the perfect home they can also help you with writing up an offer to purchase.
Step 3: Appraisal & Inspection
When you, the borrower, request a loan from us, the lending institution, we then must schedule an appraisal. The independent appraiser visits the property, researches comparable sales data in the area of the property and submits a report to us with their analysis of the property value.
Many people also request that an inspection be done on the property prior to the sales contract being finalized. We recommend this to home buyers to ensure that they are aware of any defects in the home that might affect the value and therefore the selling/offer price. An inspector works for you (and thus is paid by you) and is usually trained in construction to look specifically for defects and functionality issues that may not be obvious, except to an expert.
Step 4: Underwriting
Now you’re on the fast track – Vermont Federal underwriters will verify all aspects of the loan. During this time we may need to request additional information for the loan file.
Step 5: Commitment
Once all the information is verified, a commitment letter is issued from us to you. This letter acknowledges that all information has gone through the underwriting process and that we are committing, if all other conditions are satisfied, to issue the mortgage loan.
Step 6: Title
We will then request a title report from the attorney. The attorney will research the town office to review title history, zoning, compliance and existing liens on the property to assure that the current seller does in fact own the property and has a right to sell it.
Step 7: Insurance
A home-owners insurance policy must be obtained and pre-paid for one year on the property. A copy of proof of insurance will need to be provided on or before the closing.
Step 8: Closing
Congratulations! Closing is the final step in the home buying process and makes the property officially yours. Closing cost estimates will be provided to you within one business day prior to closing. All closing costs are due at the time of closing. If all documentation and payments are made, you are the owner of a new home!
Click Here for a sample fee worksheet for a property sold at $220,000 with a 5% down payment at a 4.375% interest rate to see the types of funds you might need to close.
Meet Our Mortgage Officers
If you are interested in learning more or wish to obtain a pre-qualification from Vermont Federal Credit Union, please contact our Mortgage Officers. You may also request a FREE copy of our Home Buying Member Workbook, which provides helpful tips and worksheets to guide you through the home buying process.
Vermont Federal Credit Union offers its monthly membership e-Newsletters (E-Acess) that are filled with promotions, finance-related articles and tips, inside information about Vermont Federal sponsored events and more. Contact a Member Service Representative at (888) 252-0202, Option 3, to update your email information.
8 Steps to Home Ownership
You’ve decided it’s the right time to purchase a home, but now what? Buying a home can be both confusing and overwhelming, especially if it's your first time. We want to help you better understand the complete process, including who's involved and what you will need to reach your end goal of being a homeowner.
Step 1: Application & Pre-Qualification
In today's real estate market, it’s a huge advantage to be pre-qualified for financing before you start looking for a property. It can also help to determine How Much Home You Can Afford and it assures real estate agents and sellers that you are a qualified buyer.
Applying for a mortgage loan will require that you have significant financial documentation to prove that you can afford the payments. A loan officer will need to review employment history (pay stubs and W-2’s), other various income (bonuses and commissions), credit score, monthly obligations and more to determine the amount for which you qualify as well as your ability to pay back the loan.
Once all the documentation has been considered, the lender will provide you with a pre-qualification letter so that you can begin searching for your dream home.
Step 2: Purchase & Sales Contract
There are many options to consider when looking for a home, including which communities and neighborhoods you'd like to live in, what style home you prefer and also the price range at which you can afford. A real estate agent can help you prioritize your wants and needs in order to find the perfect home. Once you find the perfect home they can also help you with writing up an offer to purchase.
Step 3: Appraisal & Inspection
When you, the borrower, request a loan from us, the lending institution, we then must schedule an appraisal. The independent appraiser visits the property, researches comparable sales data in the area of the property and submits a report to us with their analysis of the property value.
Many people also request that an inspection be done on the property prior to the sales contract being finalized. We recommend this to home buyers to ensure that they are aware of any defects in the home that might affect the value and therefore the selling/offer price. An inspector works for you (and thus is paid by you) and is usually trained in construction to look specifically for defects and functionality issues that may not be obvious, except to an expert.
Step 4: Underwriting
Now you’re on the fast track – Vermont Federal underwriters will verify all aspects of the loan. During this time we may need to request additional information for the loan file.
Step 5: Commitment
Once all the information is verified, a commitment letter is issued from us to you. This letter acknowledges that all information has gone through the underwriting process and that we are committing, if all other conditions are satisfied, to issue the mortgage loan.
Step 6: Title
We will then request a title report from the attorney. The attorney will research the town office to review title history, zoning, compliance and existing liens on the property to assure that the current seller does in fact own the property and has a right to sell it.
Step 7: Insurance
A home-owners insurance policy must be obtained and pre-paid for one year on the property. A copy of proof of insurance will need to be provided on or before the closing.
Step 8: Closing
Congratulations! Closing is the final step in the home buying process and makes the property officially yours. Closing cost estimates will be provided to you within one business day prior to closing. All closing costs are due at the time of closing. If all documentation and payments are made, you are the owner of a new home!
Click Here for a sample fee worksheet for a property sold at $220,000 with a 5% down payment at a 4.375% interest rate to see the types of funds you might need to close.
Meet Our Mortgage Officers
If you are interested in learning more or wish to obtain a pre-qualification from Vermont Federal Credit Union, please contact our Mortgage Officers. You may also request a FREE copy of our Home Buying Member Workbook, which provides helpful tips and worksheets to guide you through the home buying process.
Vermont Federal Credit Union offers its monthly membership e-Newsletters (E-Acess) that are filled with promotions, finance-related articles and tips, inside information about Vermont Federal sponsored events and more. Contact a Member Service Representative at (888) 252-0202, Option 3, to update your email information.
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