Purchasing An Existing Home

There are many benefits to purchasing an existing home and at Whitecap Mortgage we can help you take advantage of all of them.

Quicker Closings

When buying an existing home, it typically takes 45-60 days to close once a purchase offer is accepted. This means you can take advantage of the most competitive rates available, as the shorter the amount of time your rate is locked, the lower the interest rate you can receive.

Better Value

In most real estate markets, you will be able to get more for your money when buying an existing home versus new construction. This means you have the power to purchase a larger home than you most likely could if you purchased new with the same pre-approval. You also usually save money on items such as landscaping, window treatments, trim and paint features that can be costly if you have to purchase them new and add to the homes charm and character.

Established Neighborhoods

Another benefit to buying an existing home is the neighborhood will be more established meaning what you see if what you get. If you are looking for a tree-lined, mature, and quiet neighborhood street, purchasing an existing home may be the best option.

Understanding the Loan Process

1. Pre-Qualification

During this first consult, we will discuss your financial information to evaluate your credit, income and assets. At this point everything will be done verbally (meaning no documents will be required yet) unless you are self-employed or have multiple investment homes. Based on that information, we can pre-qualify you for a home loan and start discussing options.

2. Mortgage Application

Once you find a home and are under contract, an application will be sent to you for signatures. You will also need to provide documentation that supports your pre-approval information such as:

Paystubs or Retirement Awards Letter(s)
W-2ʼs and/or 1099ʼs
Bank Statements and/or Retirement Statements
Photo ID
Documents on other homes owned, etc.

3. Loan Approval and Appraisal

Congratulations! This approval means the underwriter has reviewed your loan file and documents and has issued a commitment letter. This is also called a conditional loan approval because there are always conditions to the loan we must meet before closing. If we haven’t already, we will order your appraisal at this time also. Some examples of conditions you may see on your commitment letter are:

Documentation showing your earnest money deposit checks cleared
Providing additional gift or asset documentation or sourcing large deposits into your bank accounts

4. Remaining Conditions

At this stage in the process we will with you work to clear all the remaining conditions on your loans. You will be asked to shop for homeowners insurance, co-ordinate your closing with your title company or attorney, and lock your interest rate.

5. Initial Closing Disclosure (ICD)

This document will be the initial collaboration with your title company or attorney before closing and will show your interest rate, closing costs and your total cash needed for closing.

This is REQUIRED to be acknowledged and signed 3 business days prior to closing by law.

6. Closing

Sign the final mortgage documents and get the keys to your new home!

Not sure if an existing home purchase is right for you or have questions on the loan process?

Visit our Knowledge Center to learn more or give us a call at (484) 656-7773 and one of our experienced loan specialists can answer your questions and help you get pre-qualified for a home today!

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All loans are subject to credit and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply. Whitecap Mortgage LLC, 119 E. Linden Street, Kennett Square, PA 19348. Phone 484-656-7773. Corporate NMLS#1847550 (nmlsconsumeraccess.com). Licensed by the Pennsylvania Department of Banking and Securities, Delaware State Banking Commission, and Maryland Department of Labor.

All loans are subject to credit and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply. Whitecap Mortgage LLC, 210 S. Mill Rd., Ste. 104, Kennett Square, PA 19348. Phone 484-656-7773. Corporate NMLS#1847550 (nmlsconsumeraccess.com). Licensed by the Pennsylvania Department of Banking and Securities, Delaware State Banking Commission, and Maryland Department of Labor.