Buying a home in the Concord NH area? Need a mortgage? Read on!

Here is a guide to help navigate today’s buying and borrowing process.

Buying a new home in the Concord area is exciting, but it can be a bit overwhelming too. The process of relocating can feel complicated, especially during a pandemic. The goal of this article is to make the process clearer and less stressful, so you can focus on finding the perfect home and a mortgage that fits your needs.

Preliminary Conditional Approval

To be best prepared to look at homes in and around Concord, we suggest getting a preliminary approval for a mortgage before you start your search. Talk to local lenders. Feel free to interview them and ask for references. This is a big decision, and they understand that you need to pick the support team that best suits your needs.

The preliminary approval process will let you evaluate closing costs and payments, and develop a budget and program that works for you. You will work with your lender to find a purchase price/mortgage payment that you are comfortable with and that you would qualify for. There are several different programs to talk through with your lender in order to find just the right fit. It’s a lot less stressful knowing that you have that preliminary approval letter with you when you are working with realtors. When you have that letter, they know that you are a serious buyer and will feel comfortable that you can afford the properties that they are showing you. 

Home Search, Purchase and Sales Agreement

Work with a local New Hampshire realtor to assist you in finding a home, as they have good insight on the greater Concord real estate market. Many people interview a few prospective realtors and ask for references. This way you can feel confident that the realtor clicks with your personality and will be able to address your needs. Once you have found the home you’d like to purchase, your real estate agent will write up a contract for both you and the sellers to sign. This will outline and bind all dates, deadlines and contingencies. A deposit is generally required at this stage, though it is usually refundable if there is an issue with inspections, appraisal or financing.  

Home Inspection

Be sure to have a home inspection completed even if it’s not required. A reputable home inspector will look for any issues or code violations with the property. This will mitigate against any unfortunate expenses or situations shortly after you move in and any dreaded buyer’s remorse.

Mortgage Application & Disclosure Package

Once you’ve signed a Purchase and Sales Agreement, reach back out to your lender and start the official application moving. The Purchase and Sales Agreement has several dates that you need to be aware of and you need to make sure that you do whatever you can to help the lender meet them. Initially your lender will need the basics:

·      W-2’s for two years

·      Pay stubs for 30 days

·      Bank statements (all pages) for 2 months

Your mortgage lender will review your application, credit report and appropriate documentation. At this point disclosures and loan cost estimates will be provided to you and the title work and appraisal will be ordered. Based on the information that you supplied, you may get a conditional commitment letter outlining a list of any conditions that need to be addressed before finalization of the purchase. This is where you can help move the process forward. You will be assigned a processor to help you. Your processor will reach out to you to introduce themselves and to talk to you about any conditions that the underwriter is looking for in order to finish up the loan process.   

Home Owner’s Insurance (Hazard Insurance)

Select an insurance agency that offers homeowner’s insurance for your new home and provide this agency’s contact information to your processor. Your first year’s premium will need to be paid prior to or at closing.

Attorney/Title Work

Next, an approved closing/title company will be reaching out to you. This is when the title will be researched to ensure a clear title for the property you have chosen. An abstract can be done to determine the current legal owner(s) of the home and will also reveal any mortgages, liens, judgments or unpaid taxes that will need to be cleared prior to closing. Please complete the documents that they send to you in a timely manner to ensure that the process flows smoothly.

Finalization of Conditions

Your lender will work with you to be sure that all terms set in the commitment letter are finalized. Next, your loan will be “cleared to close”.

Closing Disclosure

You will get a copy of the final closing costs showing the breakdown of expenses and any money you will need to bring to the closing. These funds will need to be in the form of a Treasurer’s Check or Money Order made payable to yourself or the title company. You will need an acceptable government issued, non-expired, identification with you at the closing as well.

Closing

A representative from the closing agency and your lender should be at the closing to go over the paperwork and loan documents that you and the seller will be required to sign. All money is distributed at this time and the deed will then be recorded with you as the owner of record at the registry of deeds.

Enjoy your new home!  Welcome to the neighborhood!

-Jeni Williams, Vice President, Residential Mortgage (NMLS 409054) for Merrimack County Savings Bank (NMLS 433938)

To learn more, visit https://www.themerrimack.com/personal/home-lending/.

You can also call 603.225.2793 or 800.541.0006 and ask to speak to a mortgage specialist.

Buying a new home in the Concord area is exciting, but it can be a bit overwhelming too. The process of relocating can feel complicated, especially during a pandemic. The goal of this article is to make the process clearer and less stressful, so you can focus on finding the perfect home and a mortgage that fits your needs.