It may surprise you to learn how many other companies are involved in the mortgage loan process, especially if you’re a first-time home buyer who has never been through it before. It isn’t just OVM and a real estate agent – there are also different inspectors, title companies, and potentially government agencies that will be involved in the process. Read along to learn about which companies you are likely to work with and the purpose of each.
Who is Involved in the Mortgage Process?
OVM Financial – Your Mortgage Company and Loan Officer
We will provide you with the funds to purchase your new home. At OVM Financial, you can get pre-qualified, which shows sellers that you are a serious buyer. This pre-qualification will tell you how much you can borrow and is typically the first step in the mortgage process. Once you are pre-qualified, you can move to a pre-approval, which is considered a commitment to grant the mortgage. We’re with you through every step of the process, from beginning to end.
The Real Estate Agent
Real estate agents can be valuable during the home buying process to help you find your perfect new home. They will have access to all of the Multiple Listing Service (MLS) home listings so you can know what is out there on the market. While you can get a good idea of home listings on home searching apps, you may not be seeing everything available. A real estate agent may even have connections to homes that haven’t been put on the market yet.
Your agent will also be the one conducting negotiations between you and the seller. Once your offer is accepted, they’ll also review the purchase contract to make sure your terms are being met.
FHA, VA, USDA or Other Government Agencies
If you qualify for a government-insured mortgage such as an FHA loan (Federal Housing Administration) or VA loan (Veterans Association), you will have additional requirements in your mortgage process. To qualify for a government-insured loan, the agencies will have their own set of eligibility requirements that can include a maximum household income, minimum credit score, and purchasing a home that doesn’t exceed a certain amount. You can apply for an FHA, VA, or USDA loan right with your OVM Financial loan officer will help you throughout the process.
The Home Inspection Company
After you’ve made your offer on a home, you’ll have a home inspection conducted so you can be sure that the house is safe and sound for you and your family. An inspection clause must be included in your purchase contract and reviewed by your real estate agent. This will state that the purchase of the home contingent on what the home inspection finds. Even if the home seems to be in nearly perfect condition, there may be underlying issues. The home inspector will check essential elements such as the foundation, structural components, windows, plumbing, and electrical.
The WDO Inspection Company
A wood-destroying organism (WDO) inspection, or a termite inspection, is the second type of inspection that will take place when you purchase a home. A typical home inspection will not cover checking for wood damage and termites. The WDO inspection can help cover all of your bases and certify that the home is structurally sound.
The Title Company
The next step is to obtain the title. A title is legal documentation that includes the specifics about the property you are purchasing and who owns it, often in the form of a deed. Your title company will file the title with the correct parties and ensure that the title of the home is valid. They also may hold the escrow account, where funds for closing costs remain.
The Bottom Line
Although the number of parties involved may seem overwhelming, we will be by your side every step of the way. We are more than happy to recommend our preferred partners to ensure a seamless experience.
As always, we’re here to answer any questions you have and help guide you through the mortgage process. Just give us a call or start your application today!