Starting the Loan ProcessOrganize your documents—do you have the following on hand? Last 2 years W-2’s Last 2 years tax returns Last 2 months of pay stubs An updated list of all creditors names and addresses and amounts owed to each creditor Bank, stock, and mutual fund account statements for the last 2 months
Get pre-approved. Call us and we will help you out with getting pre-approved, 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. Advantages to getting pre-approved: Know how much house you can afford. Know how much money you need for a down payment. Strengthens your position when you are negotiating with the seller because the seller knows that your loan is already approved!
Consider your loan program choices. Think about how 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 $200,000 loan is $2,000. 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.
Obtain Loan Approval. Once your loan application has been received we will start the loan approval process immediately. This involves verifying you’re: Credit history
Employment history
Assets including your bank accounts, stocks, mutual fund and retirement accounts
Property value
Based on your specific situation, additional documents or verifications may be required.
Time for the loan to close! After your loan is approved, you will be required to sign the final loan documents, which normally will take place in front of a notary public. Be prepared to:
Bring a cashiers check for your down payment and closing costs if required.
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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