want to get a home loan?
"We enjoyed buying our home with PMG and how closely they worked with us and our out-of-town Realtor."
Are you considering buying a home, but you're not sure what to expect?
Here's how PMG's home loans work.
First, we start by getting you pre-approved for a loan.
When you make your first appointment with PMG Home Loans, you’ll have to provide us with some basic information about your finances. This includes proof of income for the last two years, typically in the form of W-2s, tax returns, pay stubs, year-to-date income statements, and documentation showing any other income, such as bonus pay or alimony. We’ll also need to check your credit.
If you’ve purchased a home before, you might have gotten a “no verification” loan (sometimes referred to as ‘no-doc loans’). These types of loans are very rare today, as the financial crisis of 2007-2008 made the dangers of subprime lending very clear. With that in mind, you’ll want to start gathering your financial information ahead of time when preparing to apply for a loan.
After you’ve submitted your financial information, we can prepare a pre-approval letter indicating the loan amount that you would qualify for. This letter is typically good for 60 to 90 days. Once you have your pre-approval letter in hand, use this time to shop around for a Realtor or real estate agent. They can make finding a home that meets your needs and fits your budget much easier, and expedite the process of making and negotiating offers.
Next comes the contingency period.
All right, so you’ve gotten approved for a loan from PMG, found your dream home, made an offer, and had it accepted. Oftentimes, in the process of negotiating a sale, contingency clauses are drawn up and attached to the offer accepted by the seller.
Contingency clauses indicate that both parties agree to the terms of the offer on a preliminary basis, contingent on certain actions being carried out within a specific time frame, usually 10 to 18 days in length.
If the terms of the contingency clauses aren’t fulfilled, the offer is nullified, and you’re back to square one.
Common Contingency Clauses
Having a home inspection performed and reviewing the findings.
Reviewing and approving the seller’s real estate transfer disclosure statement (TDS). This is a statement which summarizes the attributes of the house and any potential issues. This document can be critical down the road if it turns out the seller failed to disclose something really important, like the presence of lead paint or issues with the foundation.
Reviewing and approving the preliminary title report. This is another disclosure statement in which the seller describes the property’s location and boundaries, any tax or mortgage liens on the property, and other legal concerns.
Securing a loan that meets requirements spelled out in the clause.
Before escrow closes, you must secure any necessary homeowners insurance. For instance, you may have to get flood insurance, if you buy a home Sacramento in a flood zones. Don't worry. We’re know the Sacramento region backwards and forwards, and can help you identify whether there are any special insurance requirements, and make recommendations.
signing escrow documents
At this point, our job is to assemble all of the necessary documents, such as loan and title documents, and prepare them for you to sign. Once you’ve signed them, we send them off to the escrow company for review.
paying a down payment
Before escrow can close, you will need to visit the escrow company so you can sign a closing statement, which estimates all the closing costs and credits. Also, you’ll need to make a down payment, in the form of a cashier’s check.
funding your loan
The escrow company will then send us all of the relevant loan documents for review. Once we have approved the loan documentation, we’ll wire funds to the escrow company, which in turn will be paid to the homeowner.
You’ve done it. This is the last hurdle! Once the escrow has verifies that they have been paid, they will take care of having your new home’s grant deed recorded in your name at the local county clerk’s or recorder’s office.
Buying a home may sound overwhelming. But PMG makes it as easy as possible.
PMG Home Loans has helped more than 1,500 families get loans and buy the homes of their dreams. We know the ins and outs of the process, and understand the local real estate market. Give us a call, and we’ll get you started.