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Guardian Mortgage's Home Buyer's Handbook

Guardian Mortgage's Home Buyer's Handbook

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Published by GuardianMortgage
What you don't know about mortgages can hurt you. This eBook from Guardian Mortgage is packed full of practical, money-saving advice for home buyers at every step of the home buying process - right through moving day.
What you don't know about mortgages can hurt you. This eBook from Guardian Mortgage is packed full of practical, money-saving advice for home buyers at every step of the home buying process - right through moving day.

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Published by: GuardianMortgage on Aug 08, 2011
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08/08/2011

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Homebuyer’s Handbook
There is more to your mortgage than the close!
 
Guardian Mortgage Company, Inc.1
Purchasing a new home can be exciting, fullling, stressful and challenging all at thesame time. Typically the largest purchase an individual will make, the home purchasesymbolizes the American dream and the opportunity to make a signicant investmentin you and your family’s future.This handbook is a playbook that helps guide a homebuyer through the mortgage process from the beginning – selecting a lender – to the end – the mortgage closing.It is designed to help you through these steps and give you a better understandingof what goes on behind the scenes with your lender. Each loan has its own unique properties, because no single home or borrower is the same. However, the loan process by which your loan application is taken, processed, approved and closed is standard.If you have additional questions, please contact us and we’ll be happy to provide anyinformation you need.
Contents
Step by StepThe Buying Process ..........................................2The Value of Homeownership ..............................................3See Your Mortgage Consultant BEFORE You Buy .............................4Choosing the Right Lender ................................................5About Us ...............................................................8The Mortgage Loan Process ...............................................9Pre-Approval vs. Prequalication ..........................................10How Much Can You Afford? ..............................................13Credit Scoring .........................................................14Common Loan Types ....................................................15Down Payment .........................................................16Rate Shopping .........................................................17Points vs. No Points .....................................................19Prepayment Penalties ...................................................20Prepayment Advantages .................................................20Details of Purchase Contract ..............................................21RESPA (Real Estate Settlement Procedures Act) ..............................23Next Steps Toward Obtaining a Mortgage ...................................24Things to AVOID When Purchasing a Home .................................25The Six Steps for a Successful Closing ......................................26Before You Move … .....................................................27Frequently Asked Questions ..............................................30Glossary of Terms ......................................................32Guardian Mortgage Company, Inc. .........................................38
 
Homebuyer’s Handbook2
Step by Step…The Buying Process
Find a lender youcan trustLook for a home Your offer The contract The mortgage loan Inspections Now it is YOURS!The rst step…In the homebuying process is to nd an experienced lender thatyou can trust and begin the loan pre-approval process. Thisguarantees that you will have a trusted loan advisor with youthroughout the process of buying your home. Your best solutionis to get a referral.The next step…Is to nd an experienced real estate agent and look at varioushomes. If you do not already have a trusted agent, your lendercan recommend one, or you may wish to get a referral from afriend, coworker or family member.Be careful – this is a BIG step…When you nd your dream home, you should present acompetitive offer immediately. Your agent should have extensiveexperience in contract negotiations. He or she will ensure youget just what you want for a fair price – a transaction in your best interest.We are starting to jog now…When the seller accepts your offer, you “go under contract.”You want to make sure every detail is handled accuratelyand immediately. Your lender and real estate agent will worktogether to ensure an accurate, timely and predictable closing.Hold on, we are at full speed…Once the offer is accepted, it is important to provide anyadditional documentation and lock in your interest rate asexpeditiously as possible. The lender orders the title workand appraisal for the loan le and then submits the loan tothe underwriter for nal loan approval. A delay in delivering paperwork can delay the closing.You’re on the “HOME” stretch!Final details are handled and inspections are performed toensure the property is “perfect” for you. The lender orders thetitle work and appraisal for the loan le. Contract details arefurther negotiated by your agent, and we head to closing!The next step will be into your new home…Be prepared to bring your checkbook to the closing procedure –your next steps will be over the threshold of your new home!

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