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40 STEPS TO HOMEOWNERSHIP
GETTING STARTED
1. Know your credit: It is important that you know your credit scores and what is on your credit report as you begin your home buying process. Credit Karma is a free resource to get information on your credit report. Although the scores are different from a mortgage credit score, Credit Karma will give you a good starting point. Knowing what's on your credit report is an important first step.
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2. Having enough savings: Purchasing a home with a our downpayment assistance program means you do not have to pay a down payment. However, you will need money for other things such as an earnest money deposit, home inspections, employment and rental verifications, and closing costs. It is recommended you have enough saved cover costs and charges.
3. Disclose all income: The Novex Home Loans loan officer must verify all income sources. This includes part-time jobs, retirement income, social security income, VA benefits, businesses that you file taxes for, and child support, to name a few. All income sources must be verified.
4. Start getting documents together: Take time to find important documents like current pay stubs, retirement statements, child support income, W2 forms, federal tax returns, driver's license, and social security card
INITIAL CONTACT
5. Talk to a Novex Home Loans loan officer: When you are ready to start the process, contact a Novex Home Loans loan officer to get started. It takes 45-60 days to close on your new home. Be sure to allow yourself enough time before your rental lease ends.
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6. Ask lots of questions: Your initial phone call is a perfect time to get questions answered. Before your initial call, research information in our FAQ section. Write down your questions ahead of your phone call. Every loan is different, so it is impossible to cover every scenario here. Asking questions during your initial call will help provide clarity.
7. Complete mini-application: After the Novex Home Loans loan officer completes the initial phone call, we will send a mini-application to be completed. When completing the application, be sure to be thorough and accurate; this will save processing time.
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8. Send requested documents: The Novex Home Loans loan officer will email a list of required documents based on the information you provided. We can not use cell phone photos of any documents. Be prepared to have them faxed or scanned and emailed.
9. Accessing your credit report: After you complete our mini-application and send your documents for review, we will pull the credit report for each buyer. For qualification and interest rate purposes, we are required to use the lowest applicant's credit score, regardless of who the veteran is. There is a small cost to pull the credit for each buyer that must be paid when we order the report.
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Get Ready
INCOME AND RENTAL VERIFICATION PHASE
10. Rental verifications: Whether you are a renter or you live with family or friends, the Novex Home Loans loan officer will contact your landlord to obtain a verification of current rental payments and rental payment history. If you live rent-free, your ‘landlord’ will provide a statement indicating you do not pay rent where you live.
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11. Employment verifications: If you are employed, the Novex Home Loans loan officer will obtain a verification of employment from your employers for the past 2 years. The verification includes all incomes, including overtime, bonuses, and time on your job.
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12. Additional documents: If you have a unique situation, the underwriter may require proof in the form of supporting documentation. The VA Lady processor will request more information and associated documents as needed.
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13. Letters of explanation: The Novex Home Loans loan officer will ask for clarification for late payments, credit inquiries, and other circumstances. These letters help to provide a clearer picture to assess your ability to repay the loan. All the verifications, documentation, and explanations are necessary in order to provide a pre-qualification letter.
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14. Pre-qualification letter: Once all your documents have been reviewed, your income is calculated, your saving reviewed, and your verifications received and your letters are written, the Novex Home Loans loan officer will determine the maximum amount you are able to purchase. Be aware this amount can change based on underwriter discretion.
HOME SHOPPING AND HOME INSPECTIONS
15. Complete the 'Dream Worksheet': Your loan officer has told you how much home you qualify to purchase. The next step is to be referred to one of our preferred VA real estate agents. We will send you a worksheet to give you the opportunity to paint a picture of your ideal dream home. Both you and your real estate agent will work together and discuss available homes on the market that meet your wishes, desires, and must-haves.
​16. The home search begins: Be prepared to look at homes that meet the criteria you said was important on your Dream Worksheet. Some of the homes you select may already be under contract. That's okay. Your agent will be able to find additional homes that meet your criteria. Both of you will continue your online and in-person home search until you find the home you want and love.
17. Making an offer: You have found the one, the perfect home and you are ready to make an offer to the seller. You and your agent will discuss the price and terms to write in the contract. The terms include, how much you want to offer, earnest money deposit, closing date, and other terms your agent will discuss with you. Now is not the time to make a low-ball offer. Low offers will probably be rejected by the seller or worse, the seller may not respond to your offer at all.
18. Your offer is considered: The seller will receive and consider the offer you made. The seller will make a decision on whether to accept the offer, reject the offer, or make a counteroffer. If the offer you made was reasonable, the seller will probably accept or counter your initial offer.
19. Your offer is accepted: Your offer has been accepted. You, your agent, and The VA Lady loan officer will continue working with you and your home buying team to complete a full loan package.
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20. Home inspections: During your due diligence period, you will schedule various home inspections (even on new construction) such as: a general inspection, heating and air, roof, electrical, foundation, or any other inspections you feel are important. The purpose of the inspection is so you, the buyer, have a clear evaluation of the current conditions of the house.
21. Submit a repair request: Based on the outcome of the home inspection reports, you may want to ask the seller to make repairs or correct some deficiencies in the house. Like the sales offer, your real estate agent will submit the repair request to the agent for the seller. It is up to the seller to determine what repairs or corrections they may or may not be willing to perform.
Get Set
22. Title commitment ordered: The Novex Home Loans processing team will order a title commitment from a local closing attorney. The title commitment is a document that shows the current legal ownership to a property and all outstanding liens. It is important that a title search is performed by a title company to ensure that there are no liens, back taxes, or other issues with the title that would delay or prevent the final sale of the home.
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23. Appraisal ordered: The Novex Home Loans processing team will order an appraisal report. An appraisal is an unbiased professional opinion of the value of a home and is used whenever a buyer is required to obtain a mortgage (loan) to purchase a home.
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24. Homeowner's insurance ordered: The Novex Home Loans processing team will request for you to get quotes for homeowner's insurance. A standard homeowner's insurance policy insures your home's structure and your belongings in the event of a destructive event, such as a fire.
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25. Home warranty ordered: The Novex Home Loans processing team will create a new home warranty account. A home warranty is a contract covering repairs and replacements on systems and appliances in your home.
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26. Termite inspection ordered: The seller may provide a termite inspection report. A termite inspection report, also called a CL-100, details visible infestation and damage caused by insects, usually termites or beetles, and decay in accessible areas of a structure.
APPRAISAL, TITLE, INSURANCE, AND WARRANTIES
INITIAL AND FINAL UNDERWRITING
27. Underwriting submission: All the initial documents and the sales contract are ready to be submitted for underwriting approval.
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28. Initial loan underwriting: The underwriter will review your documents and ensure they all meet loan guidelines. Once the underwriting review is completed, the underwriter will be issued a loan approval, suspension, or denial.
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29. Initial loan approval: If approved, the underwriter will issue an approval with additional conditions. The additional conditions can be documents needed for clarification, additional paystubs, or bank statements. Or, there may be a document that is missing and required.
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30. Additional conditions required: The VA Lady team will gather additional documents from you or other 3rd parties. Once collected, these documents will be forwarded to the underwriter for a final review.
WELCOME HOME
PREPARING TO CLOSE
31. Final loan review: The final conditions are submitted to underwriting and undergo an extensive quality control review. The lender will contact your employer and pull your credit one final time to ensure there are no material changes that will affect your loan approval.
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32. Clear-to-Close: The underwriting process is completed and the loan is given a clear to close. This means the underwriter has approved all the documentation necessary to move forward with closing. Once the clear to close is received, The Novex Home Loans loan officer will notify you that your loan is ready to close. You will receive a final document from the underwriter called a closing disclosure. You are required to review and sign this document before you can go to the actual closing.
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33. Scheduled closing: The closing date and time is scheduled with the closing attorney. The attorney will put together a closing package and calculate the exact amount of money you are required to bring to closing. If the seller is paying some of the closing costs on your behalf, this seller contribution will be deducted from the total amount of money you need to bring. You will also be notified of how the money is to be paid. In most cases, you will be required to wire the money to the attorney’s office.
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34. Final home walkthrough: You will conduct a final walkthrough with your real estate agent. A final home inspection and walkthrough allows you to ensure the home is in the same condition when you originally view it and all requested repairs have been completed.
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35. Finalize moving arrangements: Now is the time to make or finalize your moving arrangements including connecting utilities, reserving a moving truck, packing boxes, and much more.
IT'S CLOSING DAY
36. Review final figures: The closing attorney will provide you with a final closing disclosure. On the disclosure, you, your real estate agent, and your loan officer will review all the costs and charges associated with getting the loan. The closing disclosure gives you the amount of money, if any, you need to wire or bring to closing.
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37. What to take to closing: All signers must take one form of government-issued, picture identification, such as a driver's license, passport, or other government identification card.
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38. Attend closing: The big day has arrived! All buyers and signers need to attend the closing. If a spouse is not on the loan but will have and ownership of the property through the deed, they need to attend the closing and be prepared to sign some documents.
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39. Sign loan documents: There is an overwhelming amount of paperwork that must be signed. You will sign and date, initial and sign, then sign and date some more. Eventually, you will sign the final page. The closing agent will provide copies of all the documents you signed before you leave the office.
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40. You are done: Get the keys to your new home!
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CONGRATULATIONS!
You are a homeowner
WHAT PEOPLE ARE SAYING
“After working with Novex Home Loans to buy my first home, I am convinced that if it wasn't for their help and patience, I would not be a homeowner today. I found that Novex Home Loans and their staff always had my best interests in mind, which gave me tremendous peace of mind. They will be my lender for life!”