After you get the fully signed contract that has your bid/offer for the property and it has been signed by all realtors, sellers and buyers, this is the point that you call your bank back to let them know you now have a signed contract.
At this time the bank will go back over the information you had given them to be sure they have all they need and some of it they go into more depth and detail.
I called USAA and we went over everything and he put me on hold a few times to pull reports and all that fun stuff.
Now something to really make sure you know before you go to your bank for a Pre-Qualification letter should be: find out if that bank can offer loans for the type of property that you are wanting to purchase. USAA for example typically does residential but they do not offer loans for property that is zoned as agricultural. Our property is zoned as rural so it places us on the sticky side of the fence. They did move forward with the loan however but said it would come down to the appraiser in finding comparable homes nearby and also that the home would need to be the majority of the property in comparison to the land. I am not sure if that is for area or value. They have to make it work. So keeping fingers crossed there as the appraiser will have this whole deal in their hands. Granted there is a large garage on the premises too, so hopefully that can help and be a factor in it.
Our contact at USAA told us we would need to procure pay stubs from the last 30 days and also find out what the title company will be, their physical address, phone and fax and email as well as a point of contact name if possible.
In the meantime, an envelope coming by FEDEX will be arriving with disclosure documents we will need to sign and he would call us then once we received them as they can track that on their end.
Now for the rate.
I was always confused about all of this. But it seems from what I understand, is that you are buying your rate, your interest rate that is for the loan. This so seems like a....hmmm scam or I don't know what the word is, but it's kinda buggy to me.
But anyway, we were able to lock in a good rate and had the choice of either paying for an 1/8th of a point that would bring the rate to a certain number or pay more for a bit lower rate. The deal is that if you are going to have your home for a long time or plan on it, then it would behoove you to pay more now and then over the life of the loan, you would save in interest. Otherwise, if you are only going to have the home for 5-10 years, then you wouldn't worry about that so much. I plan to have this a long time and although I didn't want to pay $1,400 or so, I opted for a middle price instead.
Of course the VA has a fee and it can be rolled into the loan. For us it is $7,590, so yea, ouch.
And then, he talked of closing costs. Oh man, here is where it gets even more expensive to buy a home. With the sellers agreeing to pay up to $3,500 for their share of the closing costs, we still have to bring approximately $6,300.00. AND we'll need more than that to pay for the wood and oil that we agreed to pay. Now granted, USAA had the taxes due for this place to be twice as what I understand them to be, so if that is the case, we will not have to pay quite so much at closing. That $6,300 is for also setting up the escrow account and all that jazz.
To further explain closing costs:
It sounds like I will have to have my checkbook in hand for closing.
So at this stage of the game, I have to contact the realtor and get the title info....
.
Just called them and they will get that information to me. They need something however from the bank to say that we have started the application process to fulfill the obligation on the signed contract saying we would get that letter to the sellers. So I just emailed my contact to request that statement.
The realtor also told me they were able to pick out an inspector for us and would email him to let him know he can call me when he is free to go over what all we want done on the inspection. Now you don't have to have anything inspected, but its usually a good idea to at least get the water done. I have a few other things I'd like done so I'll be going over that when he calls.
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