Step-by-step guide
Topdot’s step-by-step guide outlines all you’ll go through to obtain a mortgage. Click on any link below to jump to a particular section, or scroll down to read each topic in order. Or, click here to print this page.
- Pre-purchase considerations
- How’s your credit?
- How much home can you afford?
- Do you have any down payment money?
- How long do you plan on living in this house?
- Take a look at the costs of on-going ownership
- Talk to a Topdot mortgage specialist.
- We’ll run a credit check and do some paperwork.
- We’ll help you select the mortgage that’s right for you.
- You’ll have an appraisal done on the subject property
- You’ll send us important documents and we’ll finalize paperwork
- You’ll attend the closing
- Things you should do post closing.
1. Pre-purchase considerations
How’s your credit?
Any mortgage lender will require your credit risk score from reputable credit bureaus such as Equifax, Experian or TransUnion. Commonly known as your *FICO® score, this number will help determine if you are a “good risk.” The higher the score, the more home mortgage options available to you. The credit report looks at a number of factors including:
- If you paid your bills on time
- Your outstanding debts and loans
- Your credit limits
- The types of credit you have
Blemishes on your credit history may prohibit some lenders from giving you a loan. But the knowledge we’ve acquired over our many years of structuring mortgages allows Topdot to provide mortgages when others can't. We look deep into your individual situation to find the hidden assets that will get you the loan.
Contact us and a mortgage specialist will be happy to discuss the many mortgage options available for all types of home buyers, including those with poor credit.
How much house can you afford?
It makes no sense to start looking for a house until you know how much you can comfortably afford. Use our home affordability calculator and get an estimate of a home price that would work within your monthly budget.
Determining your payment will be influenced by how much you put down at closing. If you are selling your present house, ask your real estate agent for an estimate of its value. This will help you better determine what type of down payment you'll be able to put down on a new home.
Do you have any down-payment money?
Typically, you will have to provide a down payment to purchase a home and obtain a mortgage. There are loan programs that allow you to put no money down, but these usually only for people with higher credit scores. If your credit is not good, you will have to bring some of your own funds to the equation. Usually, home mortgage lenders require you to provide 10-20% of the purchase price. To determine the exact amount required for your down payment, one of our mortgage specialists will be happy to assist you.
How long do you plan on living in the home?
How long you plan on staying in this home is a critical factor in determining the best mortgage for you. If you plan on living in your residence on a short-term basis (5 years or less), certain adjustable rate mortgages (ARMs) and interest-only loans may be the best options for you. These types of mortgage loans might help you qualify for a higher valued home or end up costing you less than a fixed rate mortgage.
How long you plan to stay in a home can be influenced by things such as the arrival of a new child, a change in employment or career, an increase/decrease in income, etc. Some changes can be foreseen and others may not. It is wise to make sure that the home you are considering will satisfy your needs at least for the near future (1-3 years).
Take a look at the ongoing costs of home ownership.
Owning your home carries some expenses that are different than renting. Local taxes, insurance, home associations and maintenance and improvement expenses are just some of the costs that you need to plan for in addition to your monthly mortgage payment. Be certain to calculate them when determining what you can afford.
2. Talk to a Topdot mortgage specialist
Topdot mortgage specialists are here to guide you through this process. No matter how much you know about obtaining a mortgage, have one of our mortgage specialists involved as early in the process as possible. They will answer any of your questions, help you anticipate issues that may delay or inhibit your loan, and advise you on what mortgage structure is best for you.
There are several ways you can get in touch with us:
- Call us at 866.610.8368
- Jumpstart the process by filing out our DotMatrix online.
- Chat live with a mortgage specialist online.
Click here to go to our online chat.
- Let us know when you’d like us to call you.
Click here to fill out a call request form.
Because we don’t believe in just giving you a generic rate and term, your Topdot mortgage specialist will spend some time really getting to know your needs and situation. The legwork done here will make the process smoother in the long run. So be sure to disclose everything at this time. Important things to mention include:
- Who is on the title of your current house and who will be on the new title.
- Who besides you will be a decision-maker in this process. (It’s important to get everyone involved early on.)
- Your marital history, including past marriages, and children you are responsible for.
- All of your assets, including things you might not immediately consider relevant assets (like expensive jewelry or a prize-winning full-breed dog).
Once we compile a profile of your situation, we’ll be able to get right to work on some mortgage options for which you may qualify for and make sense for you. In order to continue with the process, we’ll need some key facts about you, like your social security number. Please refer to our Privacy Policy for more information.
3. We’ll run a credit check and do some paperwork.
This is the part of the process where you can sit back and relax. We’ll be hard at work reviewing your credit score, doing some paperwork and developing some mortgage options that meet your needs. Topdot knows that time is of the essence when you’re trying to buy a home, so we will get back to you in a couple days, if not hours.
At this time, we’ll also send you disclosure statements, which all mortgage companies are required by law to send their clients. The rates and fees disclosed in these documents represent a preliminary good faith estimate based on our initial discussions with you. As we get closer to the actual loan closing, we will update you on all material changes to the rates, fees and terms associated with your loan. You’ll need to sign these documents and send them back to us.
4. We’ll help you select the mortgage that’s right for you.
Soon after our initial call, we’ll get back in touch with you about your mortgage options. In most mortgages, there’s a trade-off. If you'r looking for a longer term to pay off the loan, this comes with a higher interest rate. No matter what your situation, your Topdot mortgage specialist will respond with options that they will walk you through.
5. You’ll have an appraisal done on the subject property.
If you currently own a home, an official appraisal by a third-party vendor is needed to understand what your house is worth. We will put you in touch with an appraiser in your area so that you can schedule an appointment. Be sure to do this as soon as possible, as it may take several days or weeks to get an appointment, depending upon your location. The cost of the appraisal is nominal but is your responsibility.
6. You’ll send us important documents and we’ll finalize the paperwork
Once you decide which loan is right for you, we’ll need to finalize the loan package. You won’t be approved for your mortgage until a complete loan package is submitted. To do this, we’ll request certain documents from you depending on what type of mortgage you decided upon. Typical documents needed include:
- Purchase or sales contract signed by all parties
- Signed disclosures
- Appraisal (if you currently own)
- Rent checks front and back (if you currently rent)
- Source of funds for down payment
- Copy of down payment check, front and back
- Realtor’s name, number, and pager
- Attorney’s name and number
- Two recent pay stubs for each borrower
- W-2's from the past two years
7. You’ll attend the closing
Your closing date, also known as your settlement date - will be schedule once your mortgage loan has been cleared to close. After the closing process has been completed you become a homeowner! Here are some basic's to anticipate on your closing date.
People present at your closing
There are several people who are required to attend your closing who represent both the sellers and the buyer.
Homebuyer
Seller
Attorney for both parties
Real estate agent
Escrow/closing officer or Lender’s attorney (depending on state)
Please note that a Topdot representative is typically not present at the closing. But you should feel free to call your Topdot mortgage specialist at any time during the closing if you have any questions whatsoever. Your specialist or their supervisor will be standing by to assist you.
Closing costs
Prior to closing you should receive a “good faith estimate” of what closing costs you can expect at settlement. These costs need to be paid at the closing, usually by certified check. Closing costs vary by area, but generally cover the following fees:
- Attorney’s fees
- Escrow fees
- Property taxes
- Loan origination fee
- Recording fees
- Survey fee
- Title insurance
- First premium of mortgage insurance (if applicable)
- Paid receipt for homeowners insurance policy
- Loan discount points
- Document preparation fees
Papers you will sign at closing
There are lots of papers to sign on closing day, and they vary according to location and lender. Be sure you understand all the documents. Among the papers you will need to sign are:
- Original note and deed of trust or mortgage
- Escrow instructions
- HUD-1 Settlement Statement
- Lender's Escrow instructions
- Real Estate Settlement Procedures Act (RESPA) Documents
- Truth in Lending Disclosure Statement (TIL)
- Warranty Deed
- Escrow Analysis
- Tax Authorization
Your closing step-by-step
Closings usually follow a standardized process with room for negotiations such as unreported problems encountered in the final run-through if necessary.
- Present the receipt of your homeowner’s insurance to the lender.
- Review and sign the HUD-1-Settlement statement with the seller and closing agent.
- Pay closing costs with certified checks.
- Review and sign remainding documents.
- Establish an escrow account to cover taxes, insurance, interest and private mortgage insurance if applicable.
- Review and sign mortgage or deed of trust.
- The lender will give a check to the closing agent covering the amount of the mortgage.
- You will receive the title to the property.
- Get the keys to your new home!
- The attorneys, escrow and title company will record the legal documents.
8. Things you should do post closing.
Once you’ve settled in to your new home, remember to do these things to make home ownership easier.
- Keep your mortgage paperwork and title in a safe, secure place, like a fireproof file cabinet that can be locked.
- Mark your calendar with the date and amount of your first mortgage payment. Since you’re not in the habit of making this payment, the first one could slip your mind. Avoid late fees and a blemish on your credit record by making your payments on time.
- Refer your friends and family to your Topdot mortgage specialist. Word of mouth is important to our business and enables Topdot to continue to provide hassle-free, straightforward mortgages to people nationwide.
