Workflow from Application to Close
There are NO Application or Broker Fees associated with FundMyHome.org. Nevertheless, certain upfront closing costs (credit report, ***earnest deposit, appraisal report, and property inspection report) must be paid out of the Homebuyer’s own funds. These closing costs can be credited back to the Homebuyer at closing. ***The earnest deposit is the deposit you give to your seller
Qualified home buyers can be provided with 96.5% financing plus an additional 5% to cover down payment and closing costs. And for more affordability and lower monthly payments, sellers can now contribute up to 6% of the purchase price to pay closing costs and/or to buy down your mortgage interest rate
1. Pre-Qualification Call
Homebuyers call (888) 386-3694 to complete their (a) Pre-Qualification Questionnaire, and (b) Needs Analysis.
(a) The Pre-Qualification Questionnaire is conducted to establish the Homebuyer’s purchasing power”
- Potential eligibility for purchase price
- Approximate monthly payment
- Approximate cash to close needed out of Homebuyer’s own funds
(b) The Needs Analysis is conducted to establish the Homebuyer’s criteria and specific features of their future home
- Type and description of the property
- Location
- Price point
- Distance from work and school
- Special needs, worship, hospitals, etc
2. Pre-Approval Period
Should the “Pre-Qualification Questionnaire and “Needs Analysis” yield positive results, Homebuyers proceed to complete their online application and upload their supportive documentation.
NOTE: FundMyHome.org and its preferred lenders DO NOT work with mortgage “Pre-Qualification Letters”; we ONLY work with actual government-backed Pre-Approvals obtained directly from the actual Fannie Mae—Freddie Mac interfaces, which specify the exact terms and conditions of the mortgage loan and what is needed to process and close it.
a. FundMyHome.org pre-approves your Down Payment Assistance within 4-5 days of receipt of application & supportive documentation
b. Preferred lender pre-approves your Mortgage Loan within 4-5 days of receipt of application and supportive documentation:
Preferred lender submits your loan application and supportive documentation DIRECTLY into the Fannie Mae, Freddie-Mac interface (Conventional – FHA, USDA, or VA) to obtain a D.U. Approved Eligible Loan Pre-approval.
3. Meet your Team
a. FundMyHome.org assigns you to one of its preferred Realtors. Your Realtor searches and emails you listing information on available properties that closely match your buying criteria and sets up appointments for you to view selected properties
b. FundMyHome assigns you to one of its preferred lenders who will complete and process your loan application.
c. FundMyHome.org assigns you to one of its preferred Title Agents who will arrange for and process all the details of Title work and close the purchase transaction between you and your seller.
4. Shop for your New Home
a. View selected properties with Realtor
b. Choose the home you wish to purchase
c. Negotiate terms and conditions of sale.
d. Sign Purchase Agreement
e. Place Earnest Deposit:
Earnest Deposit deposited directly with Title Company
Earnest Deposit paid for out of Buyer’s own funds
Earnest Deposit protected by terms and conditions of the contract
FundMyHome DOES NOT receive or handle Earnest Deposits
5. Submission of the Purchase Contract to the Bank
a. The fully counter-signed Purchase Agreement along with the Loan Application, Supportive Documentation, and DU Eligible Mortgage Loan Pre-Approval are promptly submitted to the bank for processing and closing.
b. Bank emails Homebuyer Loan Disclosures / Loan Estimate
c. Homebuyer acknowledges receipt of Loan Disclosures / Loan Estimate
d. Bank orders the Appraisal Report
e. Mortgage Loan processing time is 30 days
6. Appraisal Report
a. Bank orders Appraisal Report at an approximate cost os $600.00 (paid for by Homebuyer)
7. Property Inspection Period
Except for new construction, Residential Real Estate is typically bought and sold “As is with the right to inspect” which means that
Buyers purchase the property AS IS and Sellers are exempt from any obligation to warrant the condition of their properties and are exempt from any obligation to repair them. As such, it is highly recommended that Buyers hire a professional home inspector to inspect the condition of the property during the “Property Inspection Period” of the contract.
a. Property Inspections are optional, yet highly recommended
b. Realtor orders a Property Inspection Report at an approximate cost of $450.00 (paid for by Homebuyer)
c. As per the covenants of the “Property Inspection Period” clause of the contract, Homebuyers have the right to cancel the Purchase Transaction and be released from all of its contractual obligations provided that they cancel the contract within the “Property Inspection Period” at which event, Homebuyers are also entitled to be refunded the full amount of their Earnest Deposit.
d. The “Property Inspection Period” is typically seven (7) calendar days.
8. Final Loan Approval
a. Homebuyer notifies Seller of Homebuyer’s receipt of Loan Approval within the “Loan Approval Period” as stipulated within the Purchase Agreement.
b. The “Loan Approval Period” is 30 days
9. Clear to Close
a. Your Mortgage Loan is “Clear to Close” upon the Bank’s satisfactory completion of their underwriting process
b. The closing of the purchase of your new home takes place at the offices of the Title Company in 3-4 days after the loan is “Clear to Close”
10. Loan Closing
a. Loan proceeds and Down Payment Assistance are wire transferred to the Title Company
b. Homebuyer wire transfers to Title Company what remaining funds may be needed to close
c. Seller signs Seller’s Docs
d. Homebuyer signs Buyer’s Docs, Mortgage and Note
e. Title Company Closes Purchase Transaction
f. Homebuyer receives KEYS and Closing Documents
g. The end……. Homebuyer becomes Homeowner