What to expect when purchasing a home?

Congratulations! You’re ready to purchase a home. So… What’s next? Take a deep breath and get ready, the following is what you should expect moving forward with the mortgage process.

First things first:

  • Get pre-approved: It’ll help you know how much you can afford, it shows you how serious you are, and it’s free!
  • Find a Preferred RealtorIf you don’t have a realtor, we’ll help you out! We’ve got a select group of Preferred Realtors that will help you find the home of your dreams.
  • Put in a Purchase OfferAfter you’ve found the home you want, it’s time to put in a purchase offer with the seller.
  • Submit your application: If your offer is accepted by the seller, you’ll need to make sure your pre-approval letter is up-to-date so that your Loan Specialist can complete your application. Once, it’s approved you can lock in your rate. A small application fee is required and will be listed on your Loan Estimate—a document that details all of the expenses made by both the buyer and seller.

What to expect from DuPage Credit Union

Appraisal
Appraisals are an easy way to get an unbiased estimate of how much a home is worth. We may order one to objectively assess a home’s value and make sure you aren’t paying more than the home is worth. If we do, we’ll make sure you get a copy for your records.

Additional paperwork
We may need some additional documents like; proof of income, assets, most recent W2 in order to move forward. We’ll contact you if we do.

Title search & insurance
Similar to a car title, a title search specifies who the owner of the property is. We’ll request this from the seller or refinancer to maker sure they’re the rightful owner of the property and that any existing liens are identified prior to you purchasing the property. If there are any discrepancies, a title insurance policy will cover you and DuPage Credit Union.

Homeowners insurance
In order to close on your home, you’ll need to purchase home owners insurance and provide us proof of the insurance in order to close your mortgage. Just like the title search and insurance, this helps protect you and the Credit Union.

What you should do

Pick a real estate attorney
Once you’ve been approved, it’s time to hire a Real Estate Attorney. They’re essentially your paperwork body guards. They make sure that you’re protected down the last “t” and that all of the terms that were discussed and agreed upon are listed correctly in all of your documents.

Complete a home inspection
It’s not always required, but it is highly recommended, that you hire a home inspector. They’ll go through the home from top to bottom and list out any discrepancies that may present a problem. Like an old or leaky roof, broken appliances, or even cracked foundation. If they find anything, you can ask the seller to replace or fix them, for a reduction in price, or as credits to your closing costs.

Purchase additional insurance
When you’re financing a mortgage, you want to make sure that you’re investment is taken care of should anything happen. Below are a few different types of mortgage insurance you may have to provide in addition to Homeowners Insurance.

    • Flood insurance: There are more than a few government-designated flood zones in Illinois. To help you protect your investment, if your new home happens to fall within one of them, we require flood insurance.
    • Private Mortgage Insurance: For the majority of our home loan options, you’ll have to pay PMI if you provide less than a 20% down payment or if you have less than 20% equity in an existing home. PMI automatically drops off at 22% equity, or once you’ve reached 78% Loan-to-Value (LTV). However, you can request to remove PMI once you’ve reached 80% LTV.

And, finally… CLOSE!

Closing is the final step in the mortgage process. At closing, you and your Real Estate Attorney will review and sign the mortgage contract, legal documents like the title search and insurance,  and pay any costs (i.e. appraisal fees, title fees, and title insurance) necessary to complete your mortgage and move in.

There may be additional documentation that’s needed or additional steps that need to be taken –those are determined on a case by case basis. If you’re interested in getting started or learning more about the process, schedule a consultation with one of our mortgage experts.

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