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There are 6 steps in
the loan process. They are:
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Provide two years
W-2 and one month of pay stubs if you are salaried OR provide
two years tax returns and a YTD profit and loss statement if you
are self-employed.
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Provide rental
agreements and two years tax returns if you own rental property.
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If you wish to
speed up the approval process, please also provide three months
bank statements for each bank, stock and mutual fund account.
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Provide recent
copies of any stock brokerage or IRA/401K accounts that you may
have.
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If you are
requesting a cash out refinance please provide a letter
explaining what you plan to do with the proceeds.
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Provide a copy of
divorce decree if applicable.
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If you are NOT a
US citizen, provide us with a copy of your green card (front
& back), or if you are NOT a permanent resident provide us
with your H-1 or L-1 visa.
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Please provide a
copy of the note on your first mortgage if you are applying for
a home equity loan. This will normally be found in your closing
loan documents.
Getting qualified
before you apply for a loan can help you understand how much you can
borrow. When buying a house, you may get pre-qualified or
pre-approved. You can typically get pre-qualified over the phone or
on the Internet in a few minutes. A pre-qualification is not 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 highly recommended that you get
pre-approved before you start looking for a house. This will help
you:
-
Find out the
maximum house you can buy, so you don't waste time looking for
properties you can not afford.
-
Puts you in a
stronger position when you are negotiating with the seller,
because the seller knows that your loan is already approved.
-
Helps you close
quickly, since your loan is already approved.
To shop for a loan you
will need to:
-
Think about how
long you plan to keep the loan. If you plan to sell the house in
a few years you may want to consider an adjustable or balloon
loan. On the other hand, if you plan to keep the house for a
longer time, you may want to look at fixed loans.
-
Understand the
relationship between rates and points. Points are considered to
be prepaid interest and are tax deductible. Each point is equal
to one percent of the loan. So for example 1 point on a $150,000
loan is $1,500. The more points you pay, the lower the rate you
will get.
-
Compare different
programs. Shopping for a loan can be difficult. With so many
programs to choose from, each of which has different rates,
points and fees, it's hard to figure out which program is best
for you. That's where an experienced loan officer can help you
make a decision that's best for you.
Fill the loan
application forms completely and submit all the documents that
needed for loan approval.Top
Once your loan
application has been received we will start the loan approval
process immediately. This involves verifying your:
Based on your specific
situation, additional documents or verifications may be required. To
improve your chances of getting a loan approval:
-
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.
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Do not move money
into your bank accounts unless it can be traced. If you are
receiving money from friends, family or other relatives, please
contact us.
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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.
After your loan is
approved, you will be required to sign the final loan documents.
This will normally take place in front of a notary public. Be
prepared to:
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Bring a cashiers
check for your down payment and closing costs if required.
Personal checks are normally not accepted.
-
Review the final
loan documents. Make sure that the interest rate and loan terms
are what you were promised. Also, verify that the name and
address on the loan documents are accurate.
-
Sign the loan
documents.
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Your loan will
normally close shortly after you have signed the loan documents.
On refinance and home equity loan transactions federal law
requires that you have 3 days to review the documents before
your loan transaction can close.
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