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Start here with our Step-by-Step Home Buying guides to learn what to expect when you begin shopping. Let's start by looking at the basic steps involved in the home buying process: |
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Calculate Your Buying Power |
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An important first step in buying a new home is to have a clear understanding of your buying power - or how much home you can comfortably afford.
When you know what you can afford, you can focus on looking for homes that are right for you - and within your budget.
Use our How Much Can I Afford? mortgage calculator to get an idea of how much you can afford.
Learn more about your buying power with our How Much Income Do I Need to Qualify? calculator. |
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Two Key Factors in Qualifying for a Home Loan |
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When we review your application for a home loan, we consider two key factors: |
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Your ability to repay the loan |
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Your willingness to repay the loan |
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Your ability to repay a loan is determined by verifying your current employment and total income.
Generally, mortgage companies like to see that you've been employed at the same place for at least two years or that you have been in the same line of work for a few years. |
Your willingness to repay a loan is, in part, determined by examining how you will use the property you're planning to buy.
For instance, we ask if this is owner occupied, non owner occupied or an investment property. In addition, we determine your willingness to repay a loan by looking at your previous financial commitments and how you've handled them.
We can gain this information by looking at your credit report or utility bills. |
Despite our standard methods for determining ability and willingness to repay a loan, we want to emphasize that MetLife Home Loans approaches every loan application on an individual basis.
We look at all of your circumstances before making a decision. |
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Apply for a Home Loan |
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 Once you have an idea of how much you can afford, you're ready to apply for a home loan.
You don't have to wait until you find the right home to apply for a loan. In fact, we recommend that you apply before you begin shopping.
Being pre-qualified* for a home loan before you start looking will give you a better idea of which areas you can afford. And as a pre-qualified shopper, sellers will know you're serious about buying.
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To help you begin, visit our What You Need to Apply Checklists
to learn what information you'll need to apply for a loan. When you're ready, complete our easy and secure online application.
*A pre-qualification is not a commitment for extending credit.
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Your Initial Meeting with MetLife Home Loans |
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Your loan approval process generally begins with an initial meeting with a MetLife Home Loans Relationship Manager. During this meeting, we'll discuss the potential loan.
You'll have the opportunity to ask questions about any aspect of the home buying process.
If you haven't completed our online application,
please review the information found in our What You Need to Apply Checklists.
You'll need to bring the following to the initial meeting: |
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Purchase contract (if you have one) |
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Checking and savings account statements for the last two - three months |
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Pay stubs for each borrower and co-borrower(s) - reflecting earnings for the last 30 days, and year-to-date earnings (these must be computer-generated or typed originals that identify the employer and the employee's name) |
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Last year's W2 (and 1099 if applicable) for each borrower and co-borrower(s), plus federal tax returns for the last two years (or other proof of income and employment verification) |
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Divorce settlement papers (if applicable) |
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Credit card bills for the last few billing periods, or cancelled checks for rent or utility bill payments |
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Information about other debts such as car loans, furniture loans, student loans, and retail credit cards |
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A gift letter if you are using a gift from a parent, relative, or organization to help with your down payment and/or closing costs. If you are using a gift, check with me. |
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Your application can be processed much faster by bringing the documents listed above with you when we meet. |
After the initial meeting, you'll have a good idea whether you qualify for the type and amount of loan you want. Within a few days, we will let you know if you're approved. If your loan application is denied, we'll will explain why, and discuss any alternative lending options with you. |
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After processing the information from your application, your MetLife Home Loans relationship manager will explain the various loan programs for which you qualify.
After you've discussed and determined your loan program, your relationship manager will provide you with several disclosure documents, including: |
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Good Faith Estimate: this document details your closing costs and your monthly payment (principal and interest). |
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Truth in Lending statement: this document details the cost of finance charges and the total amount you'll pay for credit. |
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You may also receive additional disclosures, including any required by your state and/or loan program. |
Locking In Your Interest Rate |
Depending on market conditions, you may prefer to "lock in" your interest rate immediately while you shop for a home, or wait until you're almost ready to close on your loan. |
It is important to ask how far in advance you can lock a guaranteed rate - a longer lock period may affect your costs. |
As always, if you have any questions, contact me. I am happy to help you with home buying process. |