Financing Your New Home 101

Unless you’re paying for your new home in cash, working with a lender is part of the homebuying process.

While not required in order to start looking at homes, working with a lender at the beginning of the process can help you understand your buying power for a new home in Oklahoma up front. With a few simple questions, you can get pre-approved through an Ideal preferred lender to have the most knowledge going into the home search. 

Pre-Approval Process

Step 1: Credit Authorization Form for Pre Approval

Start the pre-approval process by first filling out the credit authorization form. 

Will pre approval negatively impact my credit score? In most instances, the pre-approval process only requires what is called a "soft pull" of your credit. While this soft pull might show up on websites such as Credit Karma, credit scoring models (like FICO) ignore soft inquiries and other lenders can't see the soft pulls. If you are concerned, connect with Alex Hawkins with C-Solutions to find out more about the pre-approval process. 

Step 2: Assessing Information to Determine Pre-Approval Amount

A loan officer from either C-Solutions or Citywide Mortgage will then dive into your information and begin assessing your debt-to-income ratio (DTI) and any potential speed bumps. Your loan officer will ask you to provide more information, usually in the form of financial documentation.

While other lenders may not ask for additional documentation up front, those cases are not a true pre approval. With additional simple financial documentation, Ideal preferred lenders will be able to best help you to understand how much money you can spend on a new home. 

Now you have a pre-approval letter and are most prepared for your new home search. Or, if you've already found your IDEAL home you'll skip to the mortgage approval process.

Step 3: Find your IDEAL Home

Now that you have been pre approved for a loan amount, we can help you find your IDEAL home. Once you're under contract for either a pre-designed home or custom home, you can begin the approval process.

Home Loan Process

Step 1: Mortgage Credit Report 

Once you're under contract on your IDEAL home, you will reach out to your loan officer to start the loan process. Your loan officer will start by pulling a mortgage credit report. This is considered a hard pull and will show up on your credit report. From this report, you’ll receive: your maximum loan amount, rates, loan types, and information on how to use Ideal Homes & Neighborhoods promotions (only when using a preferred Ideal lender).

What if I got pre-approved with another lender, but want to get the Ideal Homes & Neighborhoods promotions? Even though you've already been pre-approved with another lender, start by filling out the credit authorization form with C-Solutions to take advantage of Ideal promotions.

Step 2: Initial Underwriting 

This is often the nail-biting phase with other lenders. But not for you! Since you've already filled out the credit authorization form, submitted extra documentation, and received accurate results, this process is often smooth sailing. 

If you’re building a custom Ideal home or your pre-designed home isn't yet complete, you'll start the loan process immediately after going under contract, but the next steps won't start until approximately 30-45 days before completion. If you're buying a pre-designed home that is already complete, then your next steps will begin immediately.

Step 3: Loan Finalization & Rate Lock

The final stages of your home loan process take approximately 30-45 days to complete (which is why closing is often scheduled 30-45 days out). This process includes steps like appraisals and title work. You will also need to send various additional documents to your loan officer. They will walk you through this process to make it as easy as possible for you. This is also the time that your interest rate will be locked in.

Step 4: Closing

The Ideal closing team will schedule your closing day and time at the title company where you will finalize your home purchase and receive your keys!

How long does this usually take from start to finish? Most buyers complete a true pre-approval within just a few days, as long as they provide documentation quickly. Once the home loan process is initiated, it typically takes between 30 and 45 business days. Outside factors like title work and appraisal can impact the length of time. Working with a preferred lender often shortens that timeline because they’re already familiar with Ideal systems, builders, and closing processes. 

Why is it important that I fill out the credit authorization form? The information in this form gives our preferred lenders the information they need from the very beginning of the process. With the initial soft pull report, our loan officers can get much closer on estimated costs, rates, rate buydowns, etc. 

How do lenders determine how much of a home loan I can afford? The maximum qualification amount is determined by your credit history, debt-to-income ratio, loan type, down payment, etc. This is why our preferred lenders gather details and documentation in advance.

What credit score do I need in order to qualify to buy a new home? Since lenders evaluate more than just your credit score, there's no way to give exact numbers about what score is needed to qualify. Connect with Alex Hawkins at C-Solutions to find out more. 

I have recently declared bankruptcy. Can I still qualify to buy a new home? Our preferred lenders have several different investors with varying guidelines and requirements. Alex and her team have multiple avenues to work through credit challenges, high debt-to-income ratios, self-employment income, etc. 

What if I just want to know how much I can afford for a new home? While not nearly as accurate as a pre approval, a great first step to understand how much you might be able to spend on a new home is available through the Ideal Affordability Calculator. Enter a little financial information and receive a list of homes that likely fall in your affordability range.

Why Work with an Ideal Preferred Lender 

Using one of our preferred lenders offers two important benefits for buyers. 

Benefit: Promotions

Ideal offers special promotions on many new homes. These savings are only available through one of our preferred lenders. 

Benefit: Familiarity with Ideal Processes

Alex Hawkins with C-Solutions explained the logistical reason why working with an Ideal preferred lender makes the process smoother: “Preferred lenders are familiar with Ideals’ processes, closing departments, the builders, and the paperwork. Because of that, we can move loans faster. We know who to contact, and how to get answers. When issues arise, we can address them carefully and with direct access.” 

She explained that the process of applying for a mortgage can feel like a complicated, often intimidating process. By working with a preferred lender, that process is much smoother. 

Ready for your own home in Edmond, Deer Creek, Norman, Stillwater, or other areas around the Oklahoma City  metro? Visit www.idealhomes.com to explore new homes in Oklahoma City.