The Loan
Process
Talk with a loan
officer
The first step in getting your new loan
is speaking with a experienced loan
officer. Questions are the tools of the trade for the loan
officer. Be ready to provide information regarding your credit
history, income, liabilities, alimony, child support, outstanding
student loans, value of the property that will be collateral for the loan,
etc. This information will be compiled and a portrayal of your
overall ability to repay the desired loan
will start to emerge. You will be advised of options you may
consider. Various loan
products and programs, and their cost, will be explained so you
can decide the best way to proceed to accomplish your financial
goals.
Get Qualified
Pre-qualification simply means that a loan
officer has made contact
with you, and has been given enough information regarding your
finances to be able to make an initial evaluation of your chances of
successfully obtaining a new loan.
This is very informal and can be accomplished in short period of
time on the telephone or over the Internet. A
pre-qualification is not, however, as beneficial as a pre-approval
where you have to go through a more rigorous process which includes
verification of your credit,
income, assets and liabilities. It is beneficial to go
through the process of pre-approval for various reasons. It is
helpful to know exactly how much you will be able to borrow so you
don't waste time looking at properties you can not afford. When you
present an offer real
estate agents will know you are a serious buyer and you will enjoy a
superior position in negotiating with a seller because they will know
your loan
is already approved and will be able to close escrow quickly.
Select a Loan
Program
Shopping for a loan
can be stressful. With so many programs to choose from, each of
which has different rates, points and fees. Its challenging to
decide which program is best for you. That is where an experienced
1oan officer can help you make a decision that is in your best interest.
You will be shown different programs with features that make sense
for your particular situation. For example: how long do you
plan on keeping the loan before you sell? If you plan to sell your home
in a few years you may want to consider an adjustable rate mortgage
or a balloon loan
which typically allow you to enjoy the lowest interest rate
possible. Conversely, should your intention be to stay in the home
indefinitely you may want to look at a fixed rate loan
to take advantage of the stability of these types of loans and benefit
from the security of knowing your monthly payment will not increase over
the life of the loan.
Application & Loan
Approval
We will send you a formal loan
application package. This will include an application and the
various disclosures necessary to submit your loan
to a lender
Once your loan application has been received we will start the loan
approval process immediately. This involves verifying your credit
history, employment
history, assets including , bank accounts, stocks, mutual fund and
retirement accounts. It will be necessary to appraise the property
that will be collateral for the loan.
Based on your circumstances, additional documents or verifications
may be required. To improve your chances of getting a loan
approval:
 | Fill out the loan
application completely. |
| If you are salaried provide two years W-2 and three months
year to date pay stubs. If you are self-employed
provide two years tax returns and a year to date profit and
loss statement. |
| If you own rental property, please provide rental agreements and
two years tax returns. |
| Provide three months bank statements for each bank, stock and
mutual fund account. |
| Provide recent copies of any stock brokerage or IRA/401K accounts
that you may have. |
| Provide a copy of divorce
decree if applicable. |
| Respond promptly to any requests for additional documents. This is
especially critical if your rate is locked or if you plan to close
by a certain date. |
| Do not make any major purchases. Do not buy
a car, furniture or another house till your loan
is closed. Anything that causes your debts to increase might have an
adverse affect on your current application. |
| Do not move money into your bank accounts unless it can be traced.
If you are receiving money from friends, family or other relatives
for the down payment, closings cost, please contact
us. |
| Do not go out of town around the closing date. If you do plan to
be out of town when your loan
is expected to close, you may sign a power of attorney, to authorize
another individual to sign on your behalf. |
| Please provide a copy of the note on your first mortgage. |
| Be prepared to provide letters of explanation on a variety
of topics. |
| Non United States citizens must provide a copy of your
green card (front & back), or if you are not a permanent
resident provide a copy of your H-1 or L-1 visa. |
