What goes into purchasing a home with Shore Mortgage?
Buying a house is one of the biggest decisions most people make, especially if they’re a first-time home buyer. That’s why we set clear expectations for the home buying process upfront; making sure you know what options are available so you can make an informed decision. 1. First Things First
– Get Shore Before
Before you can begin your search for a home, you need to know how much you can afford. In today's competitive market, a pre-approval isnt enough. That's where our Shore Before comes in. Our underwriter reviews your file, BEFORE you submit an offer. This tells the seller that you are a serious shopper and can give you the negotiating power you need when you’re ready to make a solid offer. Shore Before is a great way to find out exactly what mortgage program options
fit your needs and will help you determine how much home you can afford
. This simple process will prepare you to move quickly after your offer has been made and accepted. Start the Shore Before process here
. 2. Next
– We’ll Help You Find a Home!
Finding the right home can be a challenge- but we can help! If you’re already working with a real estate agent, let them know you have Shore Before
, we will provide them with the information they need to get your home buying process underway, and get you to the closing table quicker. If you still need an agent, we can introduce you to a preferred real estate professional. 3. Last
– Lock in at a Low Rate and Close!
Once you find the perfect home, you’ll want to provide your Shore Mortgage Loan Officer with a purchase agreement so you can lock in at a competitive interest rate
. Home purchase rates vary depending on your down payment, FICO score, appraised value of the home you want to purchase, the type of loan program you choose and how much you have available in reserve funds.
How much can I afford?
Check out our useful Affordability Calculator
to help you figure out how much home you can afford!
How long does the home purchase process take?
Typically, the whole process takes about 30 days from application to closing. In fact, we have the 30-day priority purchase program where we promise to close your home loan in less than 30 days, or we'll give you $1,000 credit at closing.*
What is a down payment?
We typically require a cash down payment of 10% or 20% of the sale price. If you come up with less than 20% of the buying price before your loan is approved, you may have to obtain private mortgage insurance, or PMI, to protect the loan. You can often lower your mortgage payment or afford a more expensive house by putting more money down or by paying points. Do you want to apply for a loan, without paying PMI? Check out our PMI Eliminator!
Do I need to have a home inspection?
A home inspection will cost you a little bit of time and money, but in the long run you'll be glad you did it. The inspection can reveal problems that you may be able to get the current owners to fix before you move in, saving you time and money. If you are a first-time home buyer, an inspection can give you a crash course in home maintenance and a checklist of items that need attention to make your home as safe and sound as possible.
What is an appraisal?
A real estate appraisal helps to establish a property's market value–the likely sales price it would bring in an open and competitive real estate market. We require an appraisal when you use a home or other real estate as security for a loan. Most of our loan products do require an appraisal, but contact a Shore Mortgage Loan Officer to learn more!
What happens at the closing? *The 30 day closing period starts upon receipt of a fully executed purchase agreement signed by all parties involved in the sale transaction, a signed application and any required income and asset verification documentation. Borrower must agree to close their loan within 72 hours of being notified that they are approved to close their loan in order to qualify. In the event that any loan condition/item is delayed by a third party in excess of 10 business days (i.e. –appraisal, title company, home repairs condition of closing, etc.), the loan would not be eligible for the 30 day closing. All client loan conditions requested from lender must be returned within 48 hours upon request. This offer pertains only to first lien purchase loans. Eligible Properties: excludes Condos, HUD and bank owned properties, new construction and short sales. Properties subject to repairs will void the 30 day closing period. Purchase agreement must allow for a closing within 30 days. If your loan is eligible for this 30 day closing and does not close within 30 days, a $1000 lender credit will be applied to the HUD Statement at time of closing. 30 Day Priority Purchase program is subject to change or to cancellation without notice, but any loans in process at the time of change or cancellation that are eligible shall remain eligible for the program. Restrictions are subject to change without notice.
You’ll sit down with your real estate agent, probably the seller, and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. Before you go to closing, we are required to explain all of the closing costs, a "good faith estimate" of how much cash you'll have to supply at closing, and a list of documents you'll need at closing. Shore Mortgage is committed to making the closing process as easy as possible, which is why we can close your loan any location you wish - even your home!
How are Taxes and Insurance (Escrows) handled?
Property taxes and homeowners insurance are typically included in the loan amount in what's often referred as, an Escrow account. For homeowners that want to waive their escrow payments, Shore Mortgage has the Home Buyer Plus program, which allows you to buy your dream home with a minimum of 10% down*, with the option to waive your monthly escrow payments and no monthly mortgage insurance (PMI).