How To Get Started With The Mortgage Process
Is a new home on the horizon? The mortgage process may seem overwhelming but at Diamond you have a dedicated team of professionals by your side. Not only will we make sure you understand the entire process, but we will also ensure you get the mortgage that is right for you once you’ve found the perfect home.
We’re not talking about square footage, property taxes, or mortgage rates. We’re talking about your credit score because it plays a crucial role in the mortgage process. It can be the determining factor on whether or not you are approved for a mortgage.
A credit review by Diamond is a great first step. While the free credit scores offered give you an idea of your score, it is not always the same as what our lenders will obtain when generating your credit report. We want to help you make sure you are financially sound and educated about your current and future loans. Visit us at a branch or give us a call at 610.326.5490, ext. HOME.
It’s never too early or too late to start saving for a down payment. The bigger your down payment, the lower your monthly mortgage payments.
Diamond has several saving tools to help get you started or add to what you’ve already accomplished.
Millennials on the Move
A video series for first-time homebuyers who are looking for expert tips and guidance to buying their first home.
Buying a home is a large financial undertaking. Trust Diamond’s Mortgage Team to provide personalized support and guidance throughout the entire process. Our dedicated team of professionals will take the time to understand your financial goals to offer solutions that fit your needs.
Your New Home In 1, 2, 3
Getting pre-qualified is vital when looking for a new home. It will help you determine what you’re comfortable spending, as well as provide an estimate of the other costs you will encounter when buying a house.
What We’ll Do for You:
- We will review your credit score with you, answer your questions, and help you determine your next best step. If your score is good, we will help you leverage that into your best interest rate. If it needs a boost, we can get you on a path to improve your credit score.
- We will discuss income, assets, and liabilities. In other words, how much money you have coming in, how much is going out, and your savings and debts. From this, we will be able to present the mortgage options that are the best fit for you.
- We will have a dialogue about types of mortgages which could include: 10-, 15-, 20- and 30-year conventional fixed-rate mortgages; adjustable-rate mortgages; USDA.
- We will present down payment scenarios from two angles. What the minimum dollar figure or percentage is needed to make your dream happen, and what dollar figure or percentage is ideal. We’ll go over why the bigger your down payment the better and answer your questions.
What We Need From You:
- Income and employment history – most recent pay stub from within the past 30 days.
- Bank account/loan balances and depository bank.
- Government-issued identification, like a driver’s license.
We will discuss the benefits of working with a Realtor – like simplifying the process and saving you money. If you’re in need of a realtor, we have trusted realtors that can help you search with confidence.
Your agent should:
- Provide homes that realistically match your budget and wish list.
- Explain which neighborhoods are best suited to your lifestyle for now and in the future.
- Help you make the tough choices and make you aware of potential costs.
- Understand, explain, and handle the paperwork, which can feel overwhelming.
- You found a home that fits your budget, your style, and you have that feeling when you just “know.” You put in the time to get educated. You’re pre-qualified and backed by Diamond’s 70-plus years in this community. You are ready to make an offer, and your Realtor and Diamond will help.
- After your offer is accepted, and all of your documents have been received and approved, Diamond will issue a Mortgage Commitment and schedule closing.
- In addition to making your moving plans, be sure to also start shopping for homeowners insurance, as you will need it at least two weeks before closing.
- It’s time to close. Your Realtor will set up the location, date, and time. At closing, you can expect to sign a lot of papers and to go over a lot of information in a short amount of time. However, it’s the last step before you get the keys to your new home.
- It’s official, welcome to your new home.
Mortgages (starting rates shown)
| Loan Type | Interest Rate | APR |
|---|---|---|
| Conventional 30 Year | 6.125% | 6.247% APR |
| Conventional 20 Year | 5.875% | 6.034% APR |
| Conventional 15 Year | 5.625% | 5.822% APR |
| Conventional 10 Year | 5.625% | 5.904% APR |
| Adjustable Rate/Other | Contact Diamond | Contact Diamond |
Contact Diamond for more information. NOTE: APRs for corresponding rates based on $150,000 loan amount. The Annual Percentage Rate (APR) is the cost of your credit expressed as an annual rate. Because you may be paying loan discount “points” and other “prepaid” finance charges at closing, the APR disclosed is often higher than the interest rate on your loan. This APR can be compared to the APR on other loan programs to give you a consistent means of comparing rates and programs. Rates shown assume a credit score of 780 or above. Primary residence transactions apply.
Must qualify for membership. Eligibility for Credit Union membership at Diamond is open to anyone who lives, worships, works (or regularly conducts business in), or attends school in Berks, Montgomery, Chester and Bucks counties in Southeastern Pennsylvania.
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