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 Loan
Process - 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 pay stubs
OR if you are self-employed:
provide two years tax returns and a Year To Date (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 pay stubs
OR if you are self-employed:
provide two years tax returns and a Year To Date (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 or have
multiple companies pull your credit. 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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