TLC Lending :: Shopping For Home

The first step toward understanding how much you can afford is to evaluate your purchasing power and determine how much you can afford to pay each month. This saves you time by allowing you to focus on homes in your price range. In addition, as part of your planning, you should consider both the up-front and ongoing costs associated with purchasing a home. Mortgage Qualifying Calculator

Upfront costs in buying a home:
	1.	Down payment Typically ranges from 0-20% of the cost of the house. The more you can put down, the greater equity you will have in your home and the lower your monthly payment will be. For down payments less than 20% you may also need to pay private mortgage insurance.
	2.	Closing Costs Typically range from 2-6% of the loan amount. Learn More

Continuing costs in owning a home:
	1.	Monthly Housing Expense Monthly mortgage payment Homeowners/hazard insurance Mortgage Insurance, if applicable Flood Insurance, if applicable Property taxes Utilities
	2.	Periodic Housing Expense Maintenance Renovations Home Repairs

Why not increase your chances of buying a home? Get pre-approved on-line and shop with confidence for your new home. Our pre-approval offers a complete review of your financial profile based upon information you supply along with your credit history. We then determine how much you can borrow by approving you for a specific loan amount. This not only gives you increased negotiating power with the seller as a qualified buyer, but allows the lender to close your loan faster!

If the pre-approval is successful, you will receive a letter by fax or email, whichever you prefer. If we cannot issue you a pre-approval letter, we will contact you to get more information and to discuss your options.
Get Pre-Approved!

[Note: final loan approval is subject to verification of information provided and other qualifying information such as program type, documentation type, appraisal and title.]

Before you begin the house hunt, keep in mind that price is only one important variable in the decision making process. School districts, neighborhoods, and community services should be assessed for their value to your quality of life. Compare and evaluate your home choices! Our House Hunt Checklist helps you keep track of home features and options that are available to you when shopping for a home.

Do you have a realtor?

You should work with a licensed real estate agent to find your home. Real estate professionals are experienced in negotiating the purchase contract and possess a great knowledge of the local real estate market, price trends and neighborhood conditions. The agent will help you shop for your home, visit properties and negotiate with the seller (or seller's agent) when necessary. Our Home Value Tool may help you decide. This tool shows recent sales data in the areas you are shopping.

Looking for a real estate agent?

You can find real estate agents through the internet, local news media, or from referrals of family and friends. A useful link is the National Association of Realtors at http://www.realtor.org.

When you have settled on the house and neighborhood you want, it is now time to make an offer. Before doing so, you should ask the following questions:

	1.	What is the asking price versus the market value?
	2.	What are the comparative sales prices of neighboring homes?
	3.	Does the home need renovations or repairs? Assess how much.
	4.	How long has the property been on the market?
	5.	Are the sellers motivated? Has the home price been reduced? Or, does the home have multiple offers? Each will affect your ability to negotiate price.

If your answers are acceptable, then you should make an offer in the form of a written contract. This is usually done through your real estate agent or attorney. Remember, information contained in the contract is legally binding so you should have it carefully reviewed by either your real estate agent or attorney before signing.

Terms that should be negotiated are:

	1.	Purchased price, down payment and earnest money to be placed in escrow.
	2.	Closing date
	3.	Fixtures and appliances to be left with the house
	4.	Contingencies that represent certain conditions be met before the property can be transferred (e.g. financing, inspections, repairs).

The contract is usually accompanied by earnest money or deposit money to show good faith to the seller that you are a willing buyer (earnest money is refunded if your offer is not accepted). Earnest money amounts range from $1,000 to $10,000 depending on local custom and sales price, and it is applied to your down payment once the offer is accepted.

Once all parties sign the contract, its now time to finalize the financing with TLC Lending. Why Use TLC Lending? We know you have a choice in home loan financing and we appreciate the opportunity to serve you. Here's why...

Before you apply, make sure you are prepared for the application process. Home loan purchases usually take 45 to 90 days to complete. However, if you were pre-approved the information you've already provided will reduce the amount of time you will need to apply to about 30 days. Remember; always give yourself additional time for unforeseen delays and related issues when negotiating your closing date with the seller.

When the mortgage application is complete, you will be sent the required mortgage forms and disclosures to be signed by all borrowers. All required personal and financial information must be verified and other certain conditions must be satisfied before the loan is submitted to the lender for final approval. These conditions are:

Pest Inspection

A pest inspection, on the other hand, is required by the lender and provides a comprehensive assessment of the presence of wood destroying pests including past evidence of pest activity and conditions favorable to pest infestation.

Title, Appraisal, Flood Determination, Survey

Title, appraisal and flood determination are usually arranged through TLC Lending. The real estate agent will typically order the survey; however, they may also arrange for title and appraisal services at the buyers discretion.

Homeowners/Hazard Insurance

You are responsible for obtaining homeowners/hazard insurance required by the lender. This protects you against loss or damage due to theft, fire, or certain weather-related hazards. In some areas, it may also be necessary to obtain flood insurance.

Home Inspections

A home inspection is not required by lenders but it is highly recommended. A home inspection provides a comprehensive evaluation of the home's condition prior to purchase including heating, air conditioning, plumbing and electrical systems. Also, interior and exterior components of the home such as ceilings, flooring, the roof, and siding.

Upon completion of all required information and documentation, the loan is submitted to the lender for underwriting. The loan is either approved, denied, or conditioned for item clarification or additional information. Once final approval is given, a loan is cleared to close, and the closing date is scheduled. Apply Now