Buying your first house. Sounds scary, huh? It doesn't have to be, especially if you have the right lender on your side. Envoy Mortgage will walk you through the entire process, from the day you apply for a loan to the day you close on your new home.
On average, it takes approximately 30-45 days to close on a home, but when you apply using Envoy’s digital mortgage application, you can close up to 12 days faster and without any unwanted surprises.
Here is what to expect when you apply for a loan with Envoy:
1. Find an Envoy loan originator
To find one in your area, just head to the “find a loan originator” page on Envoy’s website, type in your ZIP code, and choose the branch nearest you. For an even more personalized experience, you can read the bio of each loan originator to find one that really stands out to you.
2. Get pre-qualified
During the pre-qualification stage, your loan originator will perform a soft credit inquiry to determine if you qualify for a home loan. A pre-qualification letter is based on certain assumptions and it is not a guaranteed loan offer. Your pre-qualification letter notifies you of the amount of financing you would be qualified for.
3. Discuss loan options
After you receive a pre-qualification letter, it is time to crunch the numbers with your loan originator. They will help you determine which loan options work best for your financial goals and current situation. You can even use their free loan calculator to see what your average monthly mortgage payment might look like.
4. Get your pre-approval letter
Before you begin house hunting, your Envoy loan originator will submit your credit and assets for evaluation to determine if you are pre-approved for the loan. A pre-approval letter lets the seller know that you are serious buyer and is necessary in any competitive market.
5. Find a house
Now it’s time for the fun part. Keep in mind that a mortgage pre-approval letter is typically only valid for about 90 days — they expire because banks need the most up-to date information about your salary, assets, and debts.
If you’re still house hunting past the expiration date on your pre-approval letter, you should contact your loan originator to receive an updated one. Once you find your dream home, notify your Envoy loan originator that you plan to make an offer on the home.
6. Put the house under contract with a deposit
You will secure the home with an earnest money deposit. When a home is under contract it means that you are making an offer on the home and the seller has accepted, but the sale is not final. When the transaction is complete and the loan is finalized, then the status of the home will be marked as sold.
While the property is under contract, terms or conditions must be met before the sale is complete. You will still need to close on the loan and meet all other conditions for the sale to be finalized.
7. Send in your contract and finalize your application
Your loan will enter into final underwriting approval, where your signed documents will be reviewed and your loan originator will verify that nothing has changed since the last review on your loan. When the loan funds, you can get your keys and enjoy your new home!
8. Complete the house inspection
While a home inspection is not mandatory, it is in your best interest to get one to determine if the property has any current damages. The home inspector will perform a visual observation to identify any health, safety, mechanical, or foundational issues. If anything is found during the home inspection, you may be able to renegotiate your offer or request repairs.
9. Title, appraisal, and home insurance
After your home passes inspection, you will need to order home insurance and, in most cases, flood insurance if the property is in a flood-prone area. Each of these items protect you, the homebuyer, from financial loss should something unforeseen occur in the future.
10. Close on your new dream home
With Envoy’s alternative closing option, you can sign most of your important documents well before you even get to your closing appointment. Choosing this option will reduce the time you spend at your closing appointment from two hours to just 15 minutes.
And that’s it — just 10 simple steps from application to house keys in-hand. Envoy creates a seamless experience so you can get into your new home faster and with less stress. Find a loan originator near you to start the process today.