Buying a Home in Wisconsin
Madison and Milwaukee Mortgage Lenders Help You Feel Confident About the Process Involved in Buying a Home in Wisconsin
You’re starting the home buying process. The road looks long and complicated, and you’re not quite sure what your Wisconsin home financing options are and how to make the best mortgage decision. Don’t worry. You can rest assured because the road isn’t as long and complicated with Providence Home Lending. Our Milwaukee and Madison mortgage lenders have over 100 years of combined Wisconsin mortgage-lending experience among us. We’ve been serving people just like you and families just like yours for years.
You can sit back and relax. Let Providence Home Lending's Madison and Milwaukee mortgage lenders guide you through the Wisconsin home mortgage loan process, step by step. Below are simple steps leading to your new home, click through and see for yourself.
Contact our Milwaukee mortgage lenders today for more information on how we can help you refinance or buy a house in Wisconsin.
The mortgage journey begins by asking yourself three basic questions:
- How much would I be comfortable paying per month?
- How long do I think I’ll live in the home?
- What down payment do I have to invest?
Your answers to these three questions will help you use the mortgage calculator to find out two important things:
- The price range of homes you should be considering.
- The length of mortgage that’s best for you.
Remember when considering your monthly payment to include local real estate taxes, as well as any mortgage insurance that might be required.
Your next step is Pre-Qualification and Pre-Approval
Pre-Qualification and Pre-Approval for a mortgage are two different things, although people often speak about them as if they were one and the same.
Pre-Qualification is a free, informal estimate of your borrowing power. It’s based on your credit rating, which we will obtain at no cost to you, and the information you provide about your finances and situation. It all takes only minutes!
Just talk to one of our mortgage specialists by telephone, email, or in person, and he or she will give you a quick estimate of how much you can likely borrow given your individual circumstances. Based on your credit rating and the information that you’ve provided, a Pre-Qualification letter can be sent to your real estate agent.
Pre-Approval makes you a power shopper! It’s a firm dollar amount for which you qualify, made after your income, assets, and credit have been favorably reviewed by the lender. Of course, it’s subject to a satisfactory appraisal of the home you eventually choose, and assumes no change in your employment or creditworthiness prior to closing.
There are many benefits to Pre-Approval, and there is no cost to apply for it.
Your next step is the Application Process!
By this point you’ve probably estimated what you can afford and might even have obtained Pre-Approval.The Application Process is a bit more formal, and it will require you to put together some documentation for the lender to see. This will include:
- Proof of income, which can be consecutive copies of your most recent pay stubs for the past month, or a copy of a signed offer that states your new salary.
- Your Form W-2 for the last two years. Alternatively, if you are self-employed or receive commission income, you’ll need two consecutive year’s tax returns.
- Your last two consecutive monthly bank statements, listing all your assets in checking, savings, mutual funds, brokerage, and retirement accounts.
- Miscellaneous information, depending on your personal situation, such as copies of resident alien cards, visas, divorce decrees, etc.
There might be other documentation needed if you are self-employed or only earn commissioned income. One of our mortgage specialists can tell you more about this.
Next learn about Underwriting
Underwriting involves evaluating your credit history, debts, assets, and income along with information about the value and condition of the house you wish to mortgage. Basically, underwriters consider three things: Collateral, Capacity, and Credit.
- Collateral is the fair market value of the house you want to mortgage. It’s determined by an independent appraiser who considers the “going prices” of at least three similar houses in the area that have been sold in the last three months.
- Capacity is the ratio of your debts to income. Everything else being equal, the less you owe relative to your income, the more creditworthy you’re considered.
- Credit Rating is your history of paying debts on time, such as rent, car loans, mortgage payments, and especially credit cards.
Next learn about Tasks Prior to Closing
There are some essential tasks that will need doing before your Closing Day can take place, and that’s another way that we will help you. We can arrange and coordinate these important details for you whenever possible, and connect you to trustworthy professional resources where necessary, including:
- Setting the Closing Date
- Selecting a Closing Agent
- Securing Title Services
- Obtaining Homeowner’s Insurance
Next learn about Your Closing Day
The day you close on your new home can be one of life’s happiest for you and your family. Your Closing Day not only completes the journey toward obtaining your mortgage, it’s when your new house officially and legally becomes yours. What could be more exciting?
On your Closing Day, your mortgage is activated, the title to your new home is transferred to you by recording a deed, and you are given the keys. Persons at your Closing Day might include the seller, real estate agents, your mortgage consultant, and perhaps one or two attorneys if you and/or the seller retain one.
And at the end of the day, the house will be yours!
200 S. Executive Drive, Suite 120
Brookfield, WI 53005
Phone: 262-255-2000 | Fax: 888-333-7240
2800 Royal Avenue, Suite 213
Madison, WI 53713
Phone: 608-227-2000 | Fax: 800-488-1829
917 Main Street
Mukwonago, WI 53149
Phone: 262-363-7775 | Fax: 262-684-2920
Watertown, WI Office
1507 E. Main Street,
Watertown, WI 53094
Phone: 920-545-0020 | Fax: 920-545-0287