Home Buying Process – WeVett

When Is My First Mortgage Payment Due?

matt — Fri, 29 Aug 2025 17:09:13 +0000

When Do I Make My First Mortgage Payment?

My name’s Evan Kaufman, your loan originator, here to help explain.

Your first mortgage payment is not actually made immediately after closing on your home. How it works, I like to say, is this: you make your first mortgage payment the second month following your closing.

What I mean by that is, if you close—say in January, any time during the month of January—your first payment is not going to be due in February. It’s going to be due in March. That gives you a little bit of time.

Now, if you’re wondering why that is, let’s break it down.

How Interest Works at Closing

When you close on a home, you’re closing on a specific day of the month. It could be the 1st, it could be the 31st, or somewhere in between. What happens is that, at closing, you’ll pay a prorated amount of interest for the month in which you close.

If you look at your closing statement, you’ll see “prorated interest.” That’s the interest you owe for the number of days you owned the home during that month.

If you close on the 1st of the month, you’ll have almost a full month of prorated interest due at closing.
If you close at the end of the month, you’ll only owe a few days’ worth of prorated interest at closing.

Why Payments Are in Arrears

Mortgage payments are always paid in arrears. In other words, you’re paying after you’ve lived in the home.

For example:

You live in your home during February.
Your payment for that time is due on March 1st.

That’s why, if you close in January, you’ll pay prorated interest for January at closing. Then, on February 1st, you don’t actually make a payment, because you’re paying in arrears. Your first official payment will be March 1st, covering the time you lived in the home during February.

Planning Your Closing Date

Sometimes people try to “skip a payment” by closing at the very start of a month instead of the end of the previous one. For example:

If you close January 31st, your first payment will be due in March.
If you wait and close February 1st, your first payment won’t be due until April.

That does push your first payment back, but remember: closing at the start of the month means you’ll owe a full month’s prorated interest at closing, which increases your closing costs.

So, here’s the trade-off:

Close late in the month → Less prorated interest due at closing, but your first payment comes sooner.
Close early in the month → Higher prorated interest due at closing, but your first payment comes later.

Quick Examples

Close in January → First payment due in March.
Close in June → First payment due in August.
Close in July → First payment due in September.

Refinances

With refinances, this timing can also make a difference. Sometimes, depending on the loan program, it can feel like you “skip” two payments—but that’s another discussion for another video.

Bottom Line: Your first mortgage payment is due the second month after closing.

Close in January → Pay in March.
Close in July → Pay in September.

I hope that helps demystify the process a little bit.

My name’s Evan Kaufman, your loan educator. Take care!

Military Home Buying Process

matt — Thu, 01 Feb 2024 15:19:32 +0000

Buying a House Sight Unseen

matt — Fri, 12 Jan 2024 18:43:18 +0000

10 Steps to Buying a Home

matt — Thu, 21 Dec 2023 17:44:59 +0000

The 10 Step Roadmap of Buying a Home

Buying a home can be very exciting but also challenging, especially if you’re a military family relocating to a new area. To ensure a smooth and successful home-buying experience, it’s important to understand the process thoroughly and have a team of experts by your side. In this guide, we’ll walk you through the ten essential steps in the home buying process, from pre-approval to taking possession of your new home.

Step 1: Getting Pre-Approved

This is the initial step where you understand how much you qualify for in terms of a mortgage. Getting pre-approved helps you define your budget and expectations for your home purchase. It’s important to know your financial standing upfront so you can make informed decisions.

Step 2: Selecting Your Real Estate Agent

Your real estate agent plays a significant role in your home buying journey. They help you navigate the market, find suitable properties, and negotiate on your behalf. It’s essential to choose an agent you trust and feel comfortable with since they are an important part of your home buying team.

Step 3: Discussing Your Needs with Your Lender and Agent

After selecting your agent and getting pre-approved, it’s time to discuss your specific needs and preferences for your future home. This ensures that your agent and lender have a clear understanding of what you’re looking for, making the search process more efficient.

Step 4: Viewing Homes

This step is where you tour homes either in-person or virtually. Some buyers may want to take a look at a large number of properties, while others may discover their dream home after only a few showings. The ultimate objective is to discover a house that perfectly aligns with your unique needs and preferences.

Step 5: Writing an Offer

Once you’ve found the home you like, your real estate agent helps you draft an offer to purchase the property. This offer outlines the price you’re willing to pay and includes contingencies, deadlines, and details about your financing.

Step 6: Negotiating the Terms

Negotiations between you and the seller may take place after you submit your offer. Your real estate agent will represent your interests and work with the seller’s agent to reach mutually agreeable terms. In competitive markets, negotiations may be limited due to multiple offers.

Step 7: The Waterfall Step

This step occurs after your offer is accepted. It involves three simultaneous processes: inspections, financing, and title escrow work. Home inspections help identify any issues that need addressing. Financing includes appraisal and underwriting to secure your mortgage. Title escrow work ensures a clear title transfer.

Step 8: Transferring Funds for Closing

As you approach the closing date, you’ll receive the final numbers detailing the funds you need to transfer for the closing costs. Typically, wire transfers or certified cashier’s checks are used for these payments. These numbers are finalized about a week before closing after inspections and negotiations have been completed.

Step 9: Closing on the Property

The closing is when you sign all the necessary documents to complete the purchase. Depending on your location and situation, this may be done in person or with a notary. This is the step where you officially become a homeowner!

Step 10: Taking Possession

Taking possession means you gain access to your new home. This step might not be on the same day as the closing, especially if the previous owners need extra time to move their belongings out. It’s essential to clarify possession and closing dates in your contract.

These ten steps provide a comprehensive overview of the home buying process. Remember that each real estate transaction is unique and it’s important to work closely with your agent and lender to work through any specific challenges that may arise.

We hope this comprehensive guide helps you navigate the home buying process with confidence. If you have any questions or need further information on any of these steps, feel free to reach out to us. Happy house hunting!

Homebuying A to Z (10 Step Process)

matt — Tue, 19 Dec 2023 19:55:58 +0000

The Military Home Buying Process

Are you a military family considering buying a home? In this comprehensive guide, we’ll walk you through the essential steps and considerations for military relocations, making your journey from A to Z as smooth as possible. Let’s dive in!

Military Considerations When Buying a Home

Before diving into the home buying process. Ask yourself two fundamental questions:

Do You Plan on Long-Term Ownership? If you intend to hold onto the property for an extended period, buying a home typically makes more sense. Real estate tends to appreciate over time, and owning property can be a smart investment.
Will You Be Stationed for at Least Three Years? Military life often involves relocating frequently. To make buying a home worthwhile, you should anticipate staying in one location for at least three years. This allows you to build equity in your home and avoid going underwater, where you end up needing to sell for less than you owe on the mortgage.

The three-year rule gives you a safe bet, ensuring you have enough time for your home’s value to appreciate and your finances to stabilize. In certain market conditions, some have successfully sold homes after just a year without going underwater. However, it’s generally more advisable to plan for a more extended period of ownership. If you don’t anticipate that you will live at your duty station for at least three years, you may want to consider renting.

The 10-Step Roadmap for Home Buying

Now that you’ve decided whether you want to buy a home, let’s outline the 10 essential steps in the home buying process:

Step 1: Get Pre-Approved or Pre-Qualified – Understand how much you qualify for in terms of a mortgage. This step helps you set realistic expectations for your home search.

Step 2: Select Your Real Estate Agent – Choosing the right real estate agent is crucial. They will guide you through the process, help you find suitable properties, and negotiate on your behalf.

Step 3: Discuss Your Needs with Your Lender and Agent – Communicate your specific requirements for your future home, such as the number of bedrooms or preferred neighborhoods. This ensures everyone is on the same page.

Step 4: Begin Viewing Homes– Explore available properties through showings, which can be in-person or virtual. You may even find your ideal home sooner than you expect.

Step 5: Write Your Offer – Once you’ve found the right property, your real estate agent will help you draft an offer to the seller, specifying the terms and conditions.

Step 6: Negotiate the Terms – Expect some back-and-forth negotiation with the seller. In a competitive market, you may need to put your best offer forward.

Step 7: The Waterfall Step – This step takes place once you are under contract and includes conducting inspections, progressing with financing, and addressing title and escrow matters simultaneously.

Step 8: Transfer Funds for Closing – Your lender will let you know what you will need to bring in for closing. Generally, you will pay this with either a wire transfer or a certified cashier’s check, since cash and personal checks are usually off the table. You will also get a final statement from the title office and attorney’s office.

Step 9: Close on the Property – This step is where you sign the papers to actually own the home. Here’s good news for you: if you’re moving from out of state, you may not need to sign in the state you’re moving to.

Step 10: Take Possession – This is the step when you receive the keys to your new home and can start moving in. It’s important to differentiate between your closing date and possession date, as they may not be the same. Make sure these details are clearly outlined in your contract to avoid any confusion or delays in your moving plans. Oftentimes for military families, buyers will allow the sellers to rent back the property for a few weeks to allow them time to move out.

Remember, the home buying process can vary by location and individual circumstances, but this roadmap provides a general framework to follow.

Key Takeaways

Preparation is Key – Preparation should usually take place about 45 to 120 days before your desired closing date.

The Closing Time Frame – It ranges from from 15 to 45 days but is typically 21 to 30 days.

The VA Loan is a Powerful Tool for Military – It allows you to put 0% down without getting punished with private mortgage insurance (PMI), but can also reward you for putting money down. The VA loan can also have very competitive interest rates.

VA Appraisal vs. Home Inspection – It’s important to understand that the VA appraisal is not a substitute for a home inspection. While VA appraisers will check for habitability issues, they will not perform a complete inspection.

Get Your Team Together – Your agent and your lender will be there to help you every step of the process. Making sure you have effective communication with them to make decisions is crucial.

Key Terms

Under Contract: Signifies that both the buyer and seller have agreed to the terms and conditions, initiating inspections, financing, and title / escrow work.

Earnest Money: Also known as good faith money, this is offered along with the offer to demonstrate commitment to the purchase; it’s important to discuss with your agent whether it’s refundable or not.

Mortgage: A type of loan used to purchase a home.

VA Loan: A specialized mortgage product for military members, including veterans, Guard, Reserve, and active-duty personnel.

Closing Costs: Additional fees associated with buying a home, typically 1.5% to 3% of the sales price, covering taxes, insurance, title fees, and lender fees.

Appraisal: An assessment of a home’s value to ensure it matches the purchase price.

Escrow Account: A third-party account for depositing funds, which can also refer to a mortgage payment setup that includes taxes and insurance.

Contingency: A condition or requirement in a contract, such as a purchase contingent on an appraisal or the sale of another property.

Do’s and Don’ts in the Home Buying Process

Here are some important do’s and don’ts to keep in mind as you navigate the home buying journey:

Do:

– Get started as early as possible

– Get pre-approved early: Knowing your budget upfront helps you narrow your search and make informed decisions.

– Check your Certificate of Eligibility for using a VA loan.

– Choose a reputable real estate agent: A skilled agent can make a significant difference in finding the right home and negotiating terms.

– Communicate your needs: Be clear with your agent and lender about your preferences and financial limitations. Be sure to also communicate quickly to ensure you can close as fast as possible.

– Do your due diligence: Your agent and your lender are there to help you be informed, but they don’t make decisions for you.

Don’t:

– Overlook your closing costs

– Assume a VA loan appraisal is a substitute for a home inspection

– Overextend your budget

– Make any major financial decisions such as taking out new credit cards or car loans that could jeopardize your loan

– Assume that VA loans are slow. Here at WeVett we can close them in 30 days or less.

– Rush into a decision: Take your time to find the right property, especially in a competitive market.

– Neglect your finances: Stay on top of your financial obligations, and ensure all necessary documents are submitted promptly.

3 Ways to Improve Your Home Value

Elevate Your Curb Appeal

Your home’s curb appeal is like its first impression—it matters a lot. Whether you’re looking to sell or just want to make your home more inviting, enhancing your landscaping can have a significant impact. Here’s how:

– Landscaping: Start with your front yard. Trim overgrown bushes, weed flower beds, and plant colorful flowers. A well-maintained lawn and garden create an appealing and inviting atmosphere.

– Porch and Entryway: If you have a porch, consider adding some outdoor furniture or potted plants. A fresh coat of paint on your front door can also do wonders.

– Lighting: Install outdoor lighting fixtures along the walkway and near the entry to create a warm and welcoming ambiance, especially in the evenings.

Remember, a beautiful front yard not only improves the value of your home but also makes it more enjoyable for you and your guests.

Freshen Up with Paint

Painting is a cost-effective way to transform the look and feel of your home, both inside and out. When done right, it can breathe new life into your living space. Here’s how to make the most of it:

– Exterior Paint: A fresh coat of paint on the exterior can make your home look newer and well-maintained. Stick to neutral or timeless colors that have broad appeal.

– Interior Paint: Paint can completely change the mood of a room. Choose colors that reflect your style and create the ambiance you desire. Keep in mind that lighter colors tend to make spaces feel larger and more inviting.

Painting is a simple DIY project for many homeowners, but hiring a professional painter can ensure a flawless finish, especially for larger or more complex areas.

Illuminate Your Space

The right lighting can have a significant impact on the overall feel of your home. Modernizing your lighting fixtures and ensuring a cohesive lighting design can increase your home’s value and create a comfortable living environment:

– Fixtures: Swap out outdated light fixtures with more contemporary options. Popular choices include black, silver, or the latest trends in gold fixtures.

– Bulbs: Consider the type of lighting you want for each room. Some areas may benefit from warm, cozy lighting, while others might need bright, white light for practical purposes.

– Consistency: Try to create a consistent lighting scheme throughout your home. It not only improves the flow but also enhances the overall feel and value of your space.

Incorporating these lighting improvements can modernize your home and provide a more pleasing atmosphere.

We hope that this comprehensive guide has provided you with valuable insights and information to make your journey from A to Z in the home buying process as smooth as possible. Best of luck in finding the perfect home for you and your family!