© 2019, Stem Lending, Inc. NMLS #1648699
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Who we are
StemLending.com is simplifying the mortgage
experience for first time home buyers. We are a team of
technologists and mortgage professionals, driven to
earn your trust through transparency. We help you
comparison shop for the right wholesale mortgage
option that works for you. Get Started today.
Contact Us
Meet: 2001 Market St, Ste 2500, Philadelphia PA 19103
Call: +1 (215) 608-1050
Email: [email protected]
Web: StemLending.com
NMLS: 1648699
First Time
Homebuyer
Checklist
StemLending.com Mortgages made transparent.
© 2019, Stem Lending, Inc. NMLS #1648699
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Checklist Items
Find a Real Estate Agent .................................................... 2
Talk to a Mortgage Broker ................................................ 3
Get pre-approved for a mortgage .................................. 3
Get your finances ready ..................................................... 3
Find the right mortgage .................................................... 5
Pick your property ............................................................... 5
Submit your mortgage application ................................ 7
Don't damage your credit ................................................. 7
Close on your Home ........................................................... 7
That's it – welcome to your new home! ........................ 8
☐ Find a Real Estate Agent
☐ Working with a seasoned professional who is
knowledgeable and has sold many homes in your local
market will help you navigate this competitive process.
We recommend interviewing 2-3 real estate agents
before starting your search.
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☐ Talk to a Mortgage Broker
Working with an experienced mortgage broker can
help shepherd you through the intricate lending
process from start to finish, expanding your options
and answering questions along the way.
At Stem Lending, we are your personal mortgage
concierge. We do the legwork — from gathering
documents to pulling your credit reports and verifying
your income and employment — and use that
information to help you find the best mortgage.
Mortgages need not be complex
☐ Get Pre-Approved for a Loan
Getting a pre-approval letter allows you to seriously
shop for your dream home. We will ask you to provide
bank statements, pay stubs, W-2/1099 forms, two
years of tax returns, and authorize us pulling your
credit report. We will work with our lending partners to
help you find the best pre-approval based on the
type of loan that's personalized for your needs.
☐ If the lender decides to offer you pre-approval, you'll
receive an estimate of what size loan you would qualify for
and approximately what interest rate you'd get.
☐ Pre-approval is typically good for 90 days. Pre-approval
letters "expire" after 90 days as lenders typically need to
update information about your salary, assets, and debts by
then.
☐ Get Your Finances Ready
☐ After meeting with your mortgage broker or lender, they
will pull your credit score. Credit scores range from 300-850,
and generally all scores 720 and above allow you to qualify
for the most competitive interest rates. Your credit score is
calculated based on many factors, including your debt
payment history, debt-to-credit utilization, and length of
credit history.
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☐ Keep in mind that your credit score won't
immediately improve in a day or even a week. If you
don't meet the credit requirements now, you may
need to revisit in a few months.
☐ Decide how much you can save for a down
payment, even if not 20%.
☐ Figure out how much house you can afford, by
accounting for one-time fees due at your closing,
and likely recurring monthly expenses as a new
homeowner.
☐ Find the Right Mortgage
☐ With dozens of types of mortgage loan products,
work with a specialist to ensure you understand your
options:
• 30yr Fixed Rate?
• 5/1, 7/1 or 10/1 Adjustable-rate (ARM)?
• Government-backed or Conventional?
☐ Calculate your monthly mortgage payment.
Find the one that works best for you.
☐ Pick your property
☐ Now that you've interviewed and chosen your real
estate agent, it's time for the fun part: shopping for
your home! Use this time to check open houses,
explore different styles of homes, and examine
different neighborhoods within your search.
Is proximity to public transit a must? What is the
quality of the school district where you are looking for
a home? Figuring out which features of your home &
the surrounding neighborhood you can and can't live
without is essential.
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☐ Need help digging up information? Various
websites like Zillow and Trulia have interactive portals
where you can enter a ZIP code, town,
neighborhood, or other information to find out more
about the area.
☐ Make an offer, with the help of your real estate
agent.
☐ Submit your application ☐ Even if you've provided the following documents
during the pre-approval process, for the full
application, be sure to have these documents
handy:
• IRS W-2 forms from the past two years
• Pay stubs from the past 30-60 days
• If you have other income outside of W-2, have
documented proof
• Federal tax returns from the past two years
• Recent bank statements
• Details on long-term debts like car or student
loans
• Government ID (Driver's License, Passport) and
Social Security number
☐ Don't damage your credit ☐ It can take weeks or even months to go from pre-
approval to closing on your home. During this time, it
is important that you don't make any additional,
significant purchases, because your loan isn't fully
approved until it goes through underwriting — which
could take place just a few days before closing.
☐ Avoid taking on new debt (e.g., getting an auto
loan), opening new credit cards, neglecting student
loan payments, or falling behind on credit card
payments.
☐ Close on your home
☐ You're almost there! Before getting the keys to your
new home, work with your mortgage broker to get
familiar with the standard closing documents ahead
of time. You shouldn't get caught off guard by
unexpected closing costs.
Stem Lending has broken down these costs, here.
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Checklist: When You Close
Most of your mortgage closing costs can be broken
down into these categories:
☐ Lender Fees
☐ Third-Party Fees
☐ Prepaid Fees
☐ Closing Date Changes (Interest Accrual)
☐ Escrow Account (Property Taxes, Insurance)
☐ Title Fees
☐ Send a copy of the signed sale contract to your
lender or broker. Also, consider whether you want to
lock in your interest rate.
☐ The lender will give you a loan estimate
(mandated by the CFPB “Know Before You Owe”
TRID regulations) detailing the terms and costs of your
loan within three days.
☐ Order a home inspection, and perhaps a termite
inspection. For older homes, you may want to
consider ordering a test for asbestos, lead, and knob
& tube electrical wiring.
☐ Contact your insurance agent to establish a
homeowner's policy to go into effect on the day of
closing.
☐ Confirm that your lender has ordered an appraisal.
☐ Start scheduling the close-out of your current utility
bills, and sign-up for new ones at the address of your
soon-to-be home.
☐ Also, complete a change-of-address form.
☐ Make sure you've set a closing date for your home,
and that you have the location.
☐ Know how much you’ll have to pay in closing
costs — and how you'll be paying (cashier's check,
certified check, wire transfer, etc.).
☐ Close out any contingencies with the seller.
☐ Schedule a walk-through of the home to be sure
it's in the same good condition it was when you first
saw the property.
☐ Schedule a security company (e.g. ADT,
Honeywell, etc.) for changing out the old locks &
installing new ones, with a new set of keys, along with
a home alarm system.
☐ Bring a photo ID and closing funds.
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That's it – Your new home awaits!
Get Started:
visit: StemLending.com
call: +1 (833) 600-0490
e-mail: [email protected]
