Understanding The Mortgage Process

Are you ready to take the next step in finding your new home? At Covington Homes, we understand that purchasing a new home can seem daunting, especially when getting a mortgage. However, we're here to guide you every step of the way. We have helped many homebuyers navigate the mortgage process.

Don't let the thought of getting a mortgage stress you out. We have broken down the process into simple steps to make it as easy as possible. And the result is worth it! Let's get started on making that a reality.

First Step: Does Your Home Builder Have Preferred Lenders?

Before picking a mortgage company to work with, you should find out if the home builder you are interested in has a preferred lender. You are not required to work with one of these lenders if you would rather find someone else. However, there are benefits to opting for the mortgage company the builder prefers.

What Are Some Benefits of Working with Preferred Lenders?

A preferred lender is a mortgage lender that has established a working relationship with a builder. This relationship enables them to streamline the buying process because this setup makes it easier and more reliable for the builder. They may be able to offer promotions to work with the preferred lender.

At Covington Homes, our preferred lenders are Loan Depot, Wells Fargo, Kirkpatrick, and CB&T Mortgage. Because we trust these institutions and have established procedures and communication with them, these lenders can offer some enticing options when you choose to get your mortgage through them. Some of these options include:

  • - A 2-1 buy-down loan gives you a reduced payment for the first two years of your mortgage.
  • - The ability to lock in a loan rate for a longer time allows you to consider your choices without feeling rushed.
  • - A rate buy-down provides a lower interest rate for the loan.

Second Step: Get Your Pre-Approval & Apply for a Mortgage

Finding out how much you can spend is a vital part of preparing to select your dream home. This process shouldn't take very long, and you will need to provide some financial information. The lender will pull your credit report and will request and confirm your income, your assets, your employment, your debt to income ratio, and other pertinent information.

Once they run the numbers, they will give you a Loan Approval letter that outlines the maximum amount of money they will lend to you, down payment, loan interest rate, and any specific conditions for the loan. The lender will also give you an estimate of how much your payments will be. This information is useful in new home-buying because it lets the builder know you are serious about buying a home, and have been approved for the mortgage loan- which is part of the contractual agreement. It also gives you the confidence to know exactly how much buying power you have.

You may have your eye on a property already, and you should know that in new builds, the loan pre-approval is your confirmation that you are qualified to purchase the new home from the builder. Remember that the loan pre-approval may not always be the same amount as a mortgage. This depends on additional changes you may choose to make to the final purchase price. A loan approval estimates how much a mortgage company will lend you based on your credit score, income, and other factors. The loan approval amount does not guarantee how much you will be approved for when the time comes for the completion of the purchase because it is up to you to listen to the mortgage lender and take the appropriate steps required in order to keep your loan approval intact.

Once your mortgage is approved, you are ready to move forward with the purchase, and soon you will be settling into your new home enjoying the benefits of homeownership!

Third Step: Find a Property - Choose Covington Homes

Finding a property is the fun part. Now that you have an approved mortgage in your pocket, you are ready to find the home of your dreams. There are plenty of properties to look at and many factors to consider, such as the community and subdivision, location, number of rooms, overall floor plan layout, kitchen and master suite configuration, included features, available upgrades and options, style, and yard size. And a Reminder: don't forget to consider the neighborhood. Your house must fit your lifestyle, but it won't work unless the neighborhood works for you too. Consider the community and neighborhood that best fits your lifestyle needs.

Covington Homes makes this easy with our carefully crafted communities. Our homes are not only beautiful, but they are also designed thoughtfully to make them functional and relaxing spaces. They are built to exacting standards, so you can trust the workmanship and care that goes into your home. We strive to make the process so easy!

Covington Homes provides exceptional homes and outstanding customer service. We invite you to browse our neighborhoods and see all we have to offer. For more information, please contact us today.

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