New First time homebuyer guide

FIRST TIME HOMEBUYERS
A Guide To Help With The
Home Buying Process
Northpoint Mortgage, Inc. NMLS #1515 CT: Licensed Mortgage Correspondent Lender ME: License #SLM8215 MA: Licensed Broker and Lender
MC1515 NH: Licensed by the NH Banking Department NJ: Licensed by the NJ Department of Banking and Insurance RI: Licensed Mortgage Broker
and Lender USVI: Licensed Mortgage Lender. When acting as a mortgage broker, we arrange loans with the third-party lenders but do not fund the loan.
Buying your first home is an exciting step that so many of
us look forward to. With the help of a Northpoint loan
officer we will make sure your home buying process goes
smoothly and efficiently.
We want to help our first time homebuyers to be well
informed and understanding of the home buying process
so we hope this guide will help you prepare for buying
your first home.
In this guide you will find:
• Pre-qualified Checklist
• Preparing for the home buying process
• Purchasing a home
• Questions to Ask
• Make your home green
• List of terms all homebuyers should know
• Who you should be in contact with
• List of our offices with phone numbers
• Detachable House hunting notes section
When meeting with a loan officer to get pre-qualified
for a mortgage there are a few basic things that every
loan officer will need from you. Here is a list to get you
started so you are ahead of the game when you are
ready to get pre-qualified. Having these items when
you meet with your loan officer will allow you to get
pre-approved faster, leading to you owning your first
home faster.
General Pre-qualified Checklist:
• 2 Months worth of most recent pay stubs
• 2 Years of W2’s
• 2 Years of tax returns
• 2 Months bank statements, all pages of all
accounts
• 12 Months cleared rent checks
• Current Debt information
• 2 years business tax returns if self employed
• Valid Photo ID
Before you meet with a realtor it is important for you to
think about what kind of home you want and what you want
to get out of your home. It is also important to prepare for
the home buying process by understanding you will need
to do a little bit of research, such as this guide, about the
overall process you will be taking part in and the
requirements that go along with it.
Preparing for the home buying process
• Start Saving for a downpayment
• After meeting with a Loan officer to get pre-
qualified get a pre-qualified letter that you can
use when presenting an offer on a home.
• Think about the longevity of the home you are
buying, are you going to have children in this
home, will it be an investment property, is it
your forever home?
• Is the property you are looking at sellable?
Does it have certain attributes that would make
it easier or harder to re-sell in the future?
• Do your own research before you meet with a loan
officer and realtor. Being able to understand what
your loan officer and realtor are explaining to you
will help you to be involved in the process and
help it run smoothly.
• During the home buying process it is important to
avoid gaining additional debt. Buying new
furniture, a new car, taking out new credit cards,
new loans, co-signing, changing jobs, and
changing banks are all things that could
negatively affect your mortgage process.
• Start an emergency fund. When buying a new
home there are sometimes things that come up
that you weren't expecting to happen. By having
an emergency fund you can feel confident in
purchasing your home and being prepared for
any unexpected bumps in the road.
The home buying process contains a number of steps. We
hope this step by step purchasing a home guide helps you
so you don’t miss a step!
Purchasing A Home
Before shopping for a home, or meeting with
a realtor, meet with a loan officer and get
prequalified. Work with them to determine
w h at y o u c a n a ff o rd , w h at k i n d o f
downpayment to budget for, and what type
of loan program you'll be using.
Step ONE:
Create a Strategy
and
Get Pre-qualified
Working with a real estate agent will help
your home buying process run smoothly
and efficiently from start to finish. If you do
not have a realtor, we would be happy to
re f e r y o u t o a n e x p e r i e n c e d a n d
professional realtor who knows the area
you are shopping in.
Step THREE:
Start Shopping for
a Home
Step TWO:
Find a Local Real
Estate Agent
After finding your real estate agent, it is
important to find an inspector to inspect the
properties you are interested in.
Once you have found a home, your agent will
submit your purchase offer to a listing agent or
seller. When your offer is accepted, the duediligence period starts a series of timelines for
fi n a l m o r t g a g e a p p r o v a l , a p p r a i s a l ,
inspections and other requirements which
would be spelled out in the terms of the
contract and your mortgage commitment
letter. During this time you will be working with
your Loan officer to obtain the required
documentation.
Step FIVE:
The Closing
Step FOUR:
Purchase Offer
Submitted
A successful closing requires all of the team
players to come together at the same time,
with all of the required paperwork and
documentation with numbers and figures
that match.
There are a lot of things to remember when buying a
home, questions to ask and things to look for. We want to
make sure our homebuyers are prepared with all of the
right questions. The list below will help you get a jump
start on being prepared for buying your first home.
Questions to Ask
What year was the house built?
-Lead based paint?
-Asbestos?
Window Efficiency?
Age of Furnace?
Age of Septic system?
Age of Roof?
How is the plumbing of the house?
Does the house have its own well or city water? How is the water?
hard, soft, drinkable?
What does the basement look like? Is it finished, has it been
flooded, is there mildew or mold?
Look at the Land. Does the yard slope towards the house, what
does the parking situation look like, is there room for expansion?
How is the electrical wiring of the home, is it safe? is it old?
Going green may seem like a big task to take on when
buying a home, but with these easy steps you can create
an energy saving eco-friendly home in no time!
Make your Home Green
Change all incandescent lightbulbs to CFL lightbulbs
Install a water filter on your kitchen sink so you can refill
your water bottle at home
Install programable thermostats
Install low flow toilets, faucets, and shower heads
Install ENERGYSTAR appliances
If floors need to be replaced, use a renewable resource
such as bamboo
Replace an old inefficient heating and cooling system
Upgrade the insulation if it is inefficient
Upgrade weather stripping and sealant around doors and
windows
During the home buying process there will be a lot of
terms used by your realtors and loan officers, it is
important that new homebuyers understand what is
happening, knowing these terms will help.
Terms you should know
Commitment Date
Financing conditional commitment from the mortgage
company.
Interest Rate
Percentage of your loan amount you are charged to
borrow money.
Loan Term
The amount of time you have to pay off your mortgage
balance.
Principal
The part of your monthly payment that reduces the
outstanding balance of your mortgage.
Mortgage Insurance
A policy which compensates lenders or investors for
losses due to the default of a mortgage loan.
Appraisal vs Inspection
An appraisal is an independent evaluation of the
current market value of a home or property to set the
value of the home so that a lender may determine how
much it can loan you the buyer. An inspection is a
thorough evaluation of a houses major systems and
structural integrity. The appraiser is typically working for
the bank, the house inspector is working for you.
Escrow
A contract, deed, bond, or other written agreement
deposited with a third person, by whom it is to be
delivered to the grantee or promisee on the fulfillment of
some condition.
Credit Score
A number assigned to a person that indicates to
lenders their capacity to repay a loan.
Hazard Insurance
Protects a property owner against damage caused by
fires, severe storms,
earthquakes or other natural
events.
Pre-qualification vs. Pre-Approval
A lender who prequalifies a buyer discusses a buyer’s
credit, income, and assets with them. A lender who preapproves a buyer runs their actual credit and verifies their
income and assets. Agents and sellers view a pre-approval
as a more firm start to the home-buying process.
Ask your Northpoint Loan Officer for recommendations
for each of these and they will gladly help you by
providing multiple options for each one.
People you should be in contact with
Northpoint Loan Officer
Local Realestate Agent
Home Inspector
Insurance Agent
Title Company /or/ Attorney
Processor at mortgage company
As a New England Based Company we understand the
importance of community. With 8 locations spread
throughout New England and growing, you are sure to
find a Northpoint office in your local community.
Locations
559 Main St. 3rd Floor,
Suite 302
Sturbridge, MA 01518
Phone:(508) 347-0010
1375 Wampanoag Trail
East Providence, RI 02915
Phone: (401) 433-0001
25 Constitution Dr.
Suite 101
Bedford, NH 03110
Phone: (603) 471-6040
204 Turnpike Road
Westborough, MA 01581
Phone: (508) 366-0636
652 George Washington Hwy
Suite 2L
Lincoln, RI 02865
Phone: (401) 475-5644
One New Hampshire Ave
Suite 209
Portsmouth, NH 03801
Phone: (603) 294-4422
10 Waterchase Dr.
2nd Floor
Rocky Hill, CT 06067
Phone: (860) 757-3515
53 Technology Lane,
Suite 116-E
Conway, NH 03818
Phone: (603) 294-4422 EXT.
155
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