First Time Homebuyers

Congratulations!! You are about to embark on one of the most important and rewarding stages in your life . . . Home Ownership.

Midlothian Mortgage Group understands the unique needs and concerns of the first time homebuyer and offers many different loan programs to accommodate each financial situation. It used to be that purchasing a home required a 20% down payment. Midlothian Mortgage Group currently offers several 100% financing options and can even finance closing costs in certain circumstances. These programs help borrowers who have little to no money realize the dream of owning a home. We have programs that allow for gifts from family members for down payment and/or closing costs and participate in homebuyer assistance programs like Nehemiah, VHDA, and Ameridream. We even have programs to assist first time homebuyers who have had credit challenges in the past.

Talk with your Midlothian Mortgage Group Loan Officer today.

The Homebuying Process

Purchasing a home is a complex process that most people only experience a few times in their lives. For this reason, having a team of experts on your side will help you to make the best decisions for your unique situation. Understanding the homebuying process is vital to a smooth transaction. Armed with the knowledge of what to expect at each stage and from each participant, you will feel much more at ease with the experience.

Step 1: PreQualification / PreApproval

Some borrowers begin looking for a home before they meet with their Lender. While you are not required to secure financing before you pick a property, it is in your best interest to meet with a Loan Professional to determine the amount of loan you will be able to afford before you sign a contract. Because preapproval includes a credit check, it is more powerful than a prequalification letter, which only estimates what you can afford based on a few simple calculations involving your income and debts. Becoming preapproved lets you. . .

Shop for a home with the confidence of knowing that you will be able to afford the mortgage.
Write a more attractive sales contract as sellers may give preferential treatment to preapproved buyers.
Find out about possible qualification problems early in the homebuying process.

In order to be preapproved you will need to provide your Midlothian Mortgage Group Loan Officer with detailed information and documentation regarding your total financial picture including but not limited to:

Most recent paystubs covering one months worth of income
Two years' most recent W-2s
Last 2 consecutive monthly statements from all asset accounts (Include IRA, TSP, 401K, etc.)
Two years residence history with addresses and phone numbers
Two years employment history with addresses and phone numbers
For VA applicants only - Certification of Eligibility and DD214
Authorization to obtain credit report

Your Midlothian Mortgage Group Loan Officer will review your financial situation, discuss mortgage options with you, and if you qualify, provide you with a written letter for a specific loan amount, down payment, and interest rate subject to terms and conditions (i.e. property appraisal).

Step 2: Finding a Home

Now that you have been preapproved, you are ready to begin shopping for your new home. While it is not mandatory to have a real estate agent working on your behalf, in the complex homebuying process it is beneficial to have a team of experts who assist you through each step.

Real Estate Agents are often made aware of properties for sale before the general public; They can help you find a home that meets your needs much quicker by selecting properties for you to see based on the criteria that you give them (neighborhood, amenities, schools, etc). Your Real Estate Agent will advise you on how to write an attractive sales contract and will work as a negotiator between you and the seller and his/her listing agent. Your Midlothian Mortgage Group Loan Officer will work in unison with your Real Estate Agent to make sure that your loan closes accurately and on time. If you do not have an agent, your Loan Officer will be happy to recommend a reputable one in your area.

Step 3: Processing and Underwriting

Once you have selected a property and have a ratified sales contract many people begin working quickly behind the scenes to meet all approval conditions and prepare your loan for closing.

Midlothian Mortgage Group will request an Appraisal on your property and a Flood Certification. The Appraisal will determine the value of the home and will indicate the maximum amount of money that can be borrowed to pay for it. If the appraiser identifies any damage or deficiency to the property that will affect its value, it must be repaired before closing. The Flood Certification will determine whether or not your property sits in a flood zone. Depending upon the type of loan you choose, you may be required to have a Pest (Termite) Inspection performed on the property.

The Loan Processor may request additional documentation from you in regard to income and/or assets in order to fully document your creditworthiness.

Midlothian Mortgage Group will request a title search from the Settlement Agent or Attorney. This search verifies that the title to the property will be free and clear of liens in order to transfer to you at closing. A survey may need to be ordered as well, to verify that there are no encroachments or easements on the land that may potentially interfere with your rights as a property owner.

You will be required to have Homeowners Insurance on your new home. This protects you and the Lender against damage caused by fire, storm, etc. If your home is in a Flood Zone, you will be required to purchase Flood Insurance as well. You will have the choice of which insurance company you want to use for Homeowners and Flood Insurance. (For more information on Homeowners and Flood insurance click here.)

Once all approval conditions are met, the loan file will be submitted to the Underwriter for final approval. The Underwriter will carefully review the loan file in its entirety to be sure that all necessary documentation has been presented and either approve the file for closing or return it to the Processor to clear additional conditions.

Step 4: Preparing for Closing

Within 3 days of selecting your property and submitting your final loan application, your Midlothian Mortgage Group Loan Officer will have provided you with a Good Faith Estimate of Settlement Costs. This document itemizes all of the charges associated with your loan. Many of these costs are unknown at the time of application, but during processing the actual costs are documented. (For more information on Settlement Costs click here.) The Lender will work with the Settlement Agent or Attorney to finalize your HUD I Settlement Statement, which notifies you of the exact amount of money you need to bring to closing in the form of a certified check.

Just prior to closing you will also perform a walkthrough inspection of your new property with your Real Estate Agent and the Seller to be sure that the property is being delivered as outlined in your sales contract.

Step 5: Closing

Closing is the final phase of your homebuying and mortgage process, so now your new home is just a few steps away.

You will have a set appointment time to go to the Settlement Agent's or Attorney's office to sign your final loan documents. These documents will transfer ownership of the property from the seller to you, acknowledge your rights to the property you have purchased, confirm your agreement to repay the money you have borrowed, and identify the Lender's right to the property if you default on the loan. The Settlement Agent or Attorney will coordinate and distribute all the paperwork and funds according to the terms agreed upon by you and the seller.

Once you have signed all of your documentation and remitted your certified check, you are homeowner - Congratulations!!