Your Guide to Buying Property in Wyoming
- In Wyoming, the transactions can be closed by an attorney, real estate agent, lending professional, or a representative from the title company.
- There are negotiations that need to be worked out, including repairs and maintenance to the home.
- Although buyers have been pre-approved, they need to finalize the mortgage and reach complete approval.
- The buyer and seller will complete the transaction together at the same table.
- Most of Wyoming is under the base limits for conforming loans, but the limits are significantly higher in Teton County.
Phase 1: Negotiations in Wyoming
Although you and the seller have come to an agreement on price and committed to the purchase, there are still a few details that need to be completed.
- Once the offer is accepted by the seller, you will both sign a contract, committing you to the purchase.
- During the signing, you will make payment of the “earnest money” or “earnest deposit.” This payment, which is returned to you if the transaction goes through, demonstrates your real, honest, and “earnest” intention to make the purchase.
- The contract (or a copy) is sent to the title company or attorney. They will begin preparations for having the deed transferred from the current owner to you, but these documents will remain unsigned (and inactive) until the final closing. A title search will also be conducted at this time.
- If you haven’t already, you will now receive disclosures from the seller. These are simply statement of known defections, damage, wear, or other concerns with the home. They will vary, but generally include any flaws with the property.
- If the house was built before 1978, a lead-paint disclosure will be required. This document states if the seller has any knowledge of lead paint in the home.
- You can now perform inspections on the property. In Wyoming, most buyers will want a general inspection. A property survey, well test, and radon inspection may also be required.
- If the inspections find specific issues with the property, changes to the contract or purchase price can be requested. You may request that the seller lower their price or fix the issue. The seller, in turn, can accept the requests or offer a negotiated solution.
- As the buyer, you can also request a home warranty. This simply covers the cost of replacing or repairing home appliances for a certain period.
Phase 2: The Wyoming Mortgage
Most homebuyers in Wyoming, as across the country, need a mortgage loan to make the purchase. Although you were likely pre-qualified before searching for a home, you’ll need to go through the process of final mortgage approval. This process can be lengthy, so it’s best to start early.
- To launch the process, you will need to make an official mortgage application. This can be done on your own or with the help of a professional.
- The lender will send a “good faith estimate,” which is a rough estimate for the costs of closing the loan.
- Your lender will now request a series of documents, which may include:
- Pay stubs: You will likely need recent paystubs to verify your income.
- Tax returns: The lending professional may need two years of tax returns.
- Bank statements: Several months of bank-account information could be requested.
- Loan documents: If you have other debts, this information should be provided.
- Financial disclosures: Anything that impacts your financial situation should be delivered. This can include child support, alimony, legal judgements, and divorce decrees. Include this information whether it impacts you finances positively or negatively.
- Explanation on any credit inquiries: Recent credit inquiries increase the statistical risk to lenders. Therefore, if recent inquiries have been made, they may need information on the cause.
- Information on any large deposits: Large deposits outside of your regular income need to be explained and verified.
- Gift letters: If you have received a cash gift that will be used for the downpayment, an explanation into the source will be requested.
- Repeat or updated information: Lenders need as much information as you can provide to issue the best possible loan. Don’t be surprised if the lender request additional information or repeat documents. Work with them and you’ll likely be approved for a top-quality mortgage.
Note: The documents requested will vary by lender and by the loan program. Regardless, it helps to have as much information available if the lending office requests it.
4. The lender will eventually issue a decision. Assuming you are approved, they will provide a document called a loan commitment letter. This simply states their willingness to support your purchase as long as certain conditions are met. (These conditions generally include a successful appraisal and no changes to the borrower’s financial situation until the loan is closed.)
5. You or your agent should send a copy of the loan commitment letter to the seller or seller’s agent. If you cannot get financing before the loan contingency date in the contract, you’ll have to request an extension.
6. An appraisal will need to be completed. If the appraisal comes back with a strong estimated value, the sale can move forward. However, if the appraisal is low, the lender will likely request changes to the purchase price or the loan itself.
7. Homeowners’ insurance will now be ordered and proof of this insurance will be delivered to the lending office.
8. In Wyoming, you may need special home insurance, such as flood insurance or specific storm insurance, depending on the location of the property.
Remember, this phase can be long and detailed. Before you even apply for a mortgage, it’s best to gather as much information as possible. Throughout the process, avoid making changes to your financial situation, as this could impact your application.
Phase 3: Closing the Deal in Wyoming
In Wyoming, the closing usually takes place with all parties together at the same time. Once all the documents are signed, you can take possession of your property. However, there are some details that need to be worked out first.
- If it has not been completed already, a title search will be performed. This verifies that the home has no ownership complications and the owner can legally sell the property without conflict.
- A final cash figure is calculated. This is the amount you will need to pay to finalize the purchase, and it will generally include closing costs, the downpayment (usually the largest part), property taxes, and more.
- Before the meeting, a final walkthrough will be performed on the property. This is to make sure the home and property are still in good condition.
- Now everyone can come together for the scheduled closing. You and the seller will sign all documents, including sale documents and loan papers.
- The buyer will now pay the remaining funds for the downpayment to the attorney or title-company representative.
- The transaction and new ownership will be recorded with the city or county where the property is located.
- You’ll receive the keys and can move into your new Wyoming home!
Conforming Loan Limits in the State of Wyoming
The entire state of Wyoming, except one county, is under the base limits for conforming loans. From Crook County in the northeast, on the border of Montana and South Dakota, down to Laramie County which touches Colorado and Nebraska, over to Uinta County, which touches the corner of Utah, the limit for a single-family home is $647,200.
You can use conforming loans to purchase a multiunit property in Wyoming. The limit for these loans is $828,700 for a two-unit property, $1,001,650 for a three-unit property, and $1,244,850 for a four-unit property.
There is one county in Wyoming that has limits far beyond the others. Teton County, which is considered one of the most beautiful areas in the nation and holds numerous outstanding homes, has a limit on single-family homes of $970,800. In this county, you can use a conforming loan up to $1,243,050 to purchase a duplex, and a loan of $1,502,475 for a three-unit property. A four-unit property in Teton County has a limit of $1,867,275.
These numbers, however, are for conforming loans only. If you need a larger loan, contact our staff to learn about jumbo loans in the state of Wyoming.
Note: These limits may not reflect current limits. The FHFA is constantly updating limits, so contact our team for current conforming loan limits.
Wyoming Downpayment Assistance Programs
Purchasing a home can be difficult. While ownership brings a wide variety of benefits, saving for a downpayment is hard. For most purchases, you need a downpayment of roughly 5% to 10%, which equals $5,000 to $10,000 for every $100,000 in purchase price. Buying a home worth $300,000? You’ll likely need a downpayment between $15,000 and $30,000 for the best terms and conditions.
This keeps many people from making a home purchase. Fortunately, there are downpayment assistance (DPA) programs in Wyoming that can provide support. These Wyoming DPA programs help you overcome the significant downpayment barrier and finally purchase the home you deserve.
Downpayment Assistance in Wyoming: Statewide Examples
If you need downpayment support in Wyoming, start your search with the Wyoming Community Development Authority (WCDA), a government office that has two specific programs…
WCDA’s Home$tretch DPA
This program is intended for first-time homebuyers. It provides a downpayment loan as high as $15,000 that has no interest and only a 0.08% APR, which is based on a loan amount of $5,500. This option has no monthly payment and is only due if you sell the home, refinance the mortgage, or reach the 30-year maturity.
WCDA’s Amortizing DPA
This program shares many similarities with the Home$tretch option; it’s a loan as high as $15,000, but has a fixed interest rate. It is fully amortized with a low monthly payment, and has a maximum term of ten years.
Welcome Home Wyoming Program
This is a program that helps homebuyers all across the state. The Welcome Home option delivers downpayment assistance in addition to a generous home loan with reasonable terms. The assistance is equal to a percent of the first mortgage, which can then be applied to your downpayment.
Common Requirements for Wyoming DPA Programs
The main requirement for these programs is an income restriction. Essentially, you need to be at or below a certain income level to qualify. They are usually fairly lenient; WCDA requires borrowers to have incomes around $124,000 or less, so most households will likely qualify.
Some programs have credit requirements as well. For example, the Wyoming Community Development Authority requires a 620 minimum credit score for both programs.
Numerous programs also require a small borrower contribution. Essentially, you need to contribute a small amount of your own cash, usually less than $2,000. The WCDA programs, for example, require you to pitch in at least $1,500 of personal savings.
Other requirements include first-time buyers, limits on debt load, and the completion of homeowner education.
These programs can help you finally purchase a Wyoming home. For more information on Wyoming DPA programs, contact our team right away!