Step 1: Get Approved
- Submit Home Loan Mortgage 1003 Application
- Credit Report
- You spend your whole life building credit for basically 2 purposes, a loan for a car, and a loan to buy a house. Don’t be worried about having your credit pulled to buy a house as this is the ultimate goal of it.
- A Credit Report also gives the Lender a detailed list of Liabilities and Debt which is used to calculate your DTI Debt to Income ratio to see what loans you qualify for.
- For the Credit Report use your full name listed on your Social Security Card not your Driver's License
- Just one reason I bring more value to you is that my Credit Report is accepted by over 20 of the top Mortgage companies while Banks, Credit Unions, and Big Mortgage companies are only usable at that single establishment. So I do not have to pull our credit multiple times protecting your score.
- Submit Home Loan Credit Report Here
- Provide Documents
- Phone Screen Shots are not accepted
- 30 Days: Paystubs
- 2 Months: Bank Statements
- Bank Statements Must have Page Numbers or they will be rejected
- 2 Years: W-2’s
- 2 Years: 1040 Individual Income Tax Return
- eSign Loan Estimate 1
- A couple days after your application you will recieve an email most likely from This email address is being protected from spambots. You need JavaScript enabled to view it. this is extremely important and a High priority you go inside and eSign this disclosure. These numbers will be OVER estimated and slowly dialed in as time passes.
- All estimates obligate you to nothing! Even the day of closing you can walk away from a mortgage company.
- You will have to sign 2 more of these Loan Estimates. The 2nd Loan Estimate is after you find the property you won the contract on, and the 3rd for pre closing.
- Once again all these estimates obligate you to nothing!
Step 2: Closing Costs & Fees
- I do all these calculations for you but in Colorado tends to be approx $6000. However when the market here in Colorado Springs isn't in a home shortage I often see Realtors get approx $5000 of seller credits.
- Inspection: $500 to $850
- Appraisal: $675-$725
- 12 Months, Homeowners/Hazard Insurance for Premium
- 3 Months, Homeowners/Hazard Insurance for Reserves
- Annual cost divided by 12 months then multiplied by 3 months
- 3 Months, Property Taxes Reserves
- Pueblo County
- El Paso County
- Annual Taxes divided by 12 months then multiplied by 3 months
- Underwriter/Administrator
- After the 2007 mortgage crisis that almost bankrupt America they created much more strict requirements to get a home loan. Underwriters are the Judge and gatekeeper to your home ownership; your mortgage loan officer aka “Samuel Munoz” is like your lawyer. They review all Loan requests and put their expert license number and stamp of approval on it for Fannie Mae and Freddie Mac. This typically costs $800 to $1000 dollars. Sometimes this fee is avoidable, no need to ask me I will always check and automatically do if possible.
- Processor
- The processor makes sure all the critical government documentation is gathered. They play a critical role and will be constantly emailing and calling you throughout the loan process. Typically $600 to $800 dollars.
- Title
- Title company makes sure you don’t buy a house owned by someone else or with leans and various bad things aka bills you would get stuck with buying that home.
- I typically see in Colorado Springs $1200 to $1500 for just the buyer.
Step 4: Under Contract
- Order a Home Inspection
- Order Termite Inspection
- ShOO! Wildlife & Pest Control
- Asbestos
- Radon
- Understanding Radon
- At what level is radon dangerous? According to the E.P.A. any level above 4.0 pCi/L needs a mitigation system. Consider fixing when the radon level is between 2 and 4 pCi/L.
- Radon is the #1 cause of LUNG CANCER among non-smokers. Overall Radon is the second leading cause of lung cancer. Radon is responsible for about 21,000 lung cancer deaths every year.
- Approximately, how much does radon mitigation cost? It varies but the average cost is $800-$1200.00. If you have a large crawl space the cost will be higher. Also, If you have a basement more than 1800 square feet you may need 2 radon mitigation systems installed.
- EPA Home Buyer’s and Seller’s Guide to Radon
- Sewer Scope
- No matter what you need a sewer scope you can always do a Radon test later but broken sewer plumping can cost $15,000+
- Well Water Testing
- Homeowners/Hazard Insurance Quote
- Your mortgage loan provider may require hazard insurance at minimum before they will issue you a loan, because that is the only portion of the homeowners insurance policy directly related to the home structure itself. This may create the misconception that hazard coverage can be purchased separately from homeowners insurance, which is not accurate. If your lender has specified that you need hazard or dwelling coverage, just know that generally purchasing a homeowners policy will satisfy their requirements.
- Yvette Jaramillo is an insurance broker she shops dozens of companies for the best price I highly recommend her This email address is being protected from spambots. You need JavaScript enabled to view it.
- eSign Loan Estimate 2
- All estimates obligate you to nothing! Even the day of closing you can walk away from a mortgage company.
- Delivery Earnest Money to Title Company
- I commonly see 1% Earnest money deposit to Title Company upon contract for buyers in Colorado Springs to show the seller they mean business and have a invested interest in valuable time when buying a home.
- Read your Real Estate Contract around line 204 or section 4.3 will show the name of the Title Company for you to call.
- A Cashiers Check from your personal bank are the best option. It has your banks information and identity connected to it and is processed and documented the easiest.
- Personal Checks might take 10 days to show on bank statement, a bank statement showing the check cleared will be required before closing. If time is limited this is NOT good.
- Money Orders are aloud, however you must provide the Mortgage Loan Officer Samuel Munoz with a picture of the purchased receipts, each original Money Order, and the Title Companies Earnest Money Receipt when you submit to them.
- Pickup Wiring Instructions from Title Company
- I require clients to pickup a paper printout of wire instructions in person from the Title company. There has been too many fake emails sent stealing millions from Americans from fake Wiring Instructions.
