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The Loan Process
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 Organize
your documents |
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If you are buying or refinancing a home
- If you are salaried:
provide two years W-2 and one month of paystubs OR if you are
self-employed: provide two years tax returns and a YTD profit
and loss statement.
- If you own rental property,
please provide rental agreements and two years tax returns.
- If you wish to speed
up the approval process, please also 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.
- If you are requesting
a cash out refinance please provide a letter explaining what you
plan to do with the proceeds.Provide a copy of divorce decree
if applicable.
- 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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If you are applying for a home equity loan
- If you are salaried: provide two
years W-2 and one month of paystubs OR if you are self-employed:
provide two years tax returns and a YTD profit and loss statement.
- If you own rental property, please provide
rental agreements and two years tax returns.
- Please provide a copy of the note on
your first mortgage. This will normally be found in your closing
loan documents.
- Please provide a signed letter explaining
what you plan to do with the proceeds.
- Provide a copy of divorce decree if applicable.
- 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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| Get
Qualified |
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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.
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| Shop
loan programs and rates |
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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.
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| Obtain
Loan Approval |
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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 your bank accounts,
stocks, mutual fund and retirement accounts
- Property value
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Based on your specific situation, additional documents or verifications
may be required. To improve your chances of getting a loan approval:
- Fill out the loan application completely.
- 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,
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.
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| Close
the Loan |
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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:
- 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.
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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