Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance

Understanding the sequence of events for your home buying journey is the critical first step

Check out my 18 milestones below to see what's in store and to help remove the mystery of home financing.

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10. SEND EARNEST MONEY DEPOSIT

11. GET A HOME INSPECTION

12. REVIEW LOAN ESTIMATE (LE)

Most contracts include an earnest money deposit or EMD. This deposit requires the buyer to place a negotiated amount of money into an escrow account within a few days after the contract is signed by both the buyer and the seller. The EMD helps to show the seller how serious you are about their home and adds a level of financial guarantee that you will follow through on the contract. It is not an expense. It is money that is held by a 3rd party and applied to your closing costs at settlement.

No one wants to move in to a home that ends up needing thousands of dollars of unexpected repairs! A home inspection is optional, but it's the best way for buyers to get an expert 3rd party opinion on the condition of the home before they agree to purchase it. Even though you signed a contract with the seller to purchase their home, most contracts have an inspection contingency period (check with your real estate agent). This period is where you can choose to back out of the deal or request the seller to fix items in a home if the inspection report finds issues you are uncomfortable with.

Every lender in the U.S. is legally required to send you a Loan Estimate (LE) 3 business days after you are under contract for a home and have completed all parts of the loan application. Your LE will provide you an estimate of the fees and costs associated with purchasing your home. This disclosure will include not only lender costs but costs from different parties like insurance, title, escrow, county fees, transfer taxes, appraisal, credit report, property taxes, impound account establishment, etc. The Loan Estimate is a good faith estimate from the lender to give you an estimate of all these fees.

Understanding the sequence of events for your home buying journey is the critical first step

Check out my 18 milestones below to see what's in store and to help remove the mystery of home financing.

10. SEND EARNEST MONEY DEPOSIT

Most contracts include an earnest money deposit or EMD. This deposit requires the buyer to place a negotiated amount of money into an escrow account within a few days after the contract is signed by both the buyer and the seller. The EMD helps to show the seller how serious you are about their home and adds a level of financial guarantee that you will follow through on the contract. It is not an expense. It is money that is held by a 3rd party and applied to your closing costs at settlement.

home_inspector-removebg-preview

11. GET A HOME INSPECTION

No one wants to move in to a home that ends up needing thousands of dollars of unexpected repairs! A home inspection is optional, but it's the best way for buyers to get an expert 3rd party opinion on the condition of the home before they agree to purchase it. Even though you signed a contract with the seller to purchase their home, most contracts have an inspection contingency period (check with your real estate agent). This period is where you can choose to back out of the deal or request the seller to fix items in a home if the inspection report finds issues you are uncomfortable with.

loan_estimate-removebg-preview

12. REVIEW LOAN ESTIMATE (LE)

Every lender in the U.S. is legally required to send you a Loan Estimate (LE) 3 business days after you are under contract for a home and have completed all parts of the loan application. Your LE will provide you an estimate of the fees and costs associated with purchasing your home. This disclosure will include not only lender costs but costs from different parties like insurance, title, escrow, county fees, transfer taxes, appraisal, credit report, property taxes, impound account establishment, etc. The Loan Estimate is a good faith estimate from the lender to give you an estimate of all these fees.

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