The Loan Process
- Get your documents & finances in order.
- Get pre-approved to determine how much you can borrow.
- Work with our loan officers to find the best mortgage for you.
- Close your loan and settle
1) Get your documents & finances in order.
You should start with reviewing your credit report. Your credit report will be used by your prospective lender as a measure of how you manage your finances. Good credit gets you better rates and a stronger negotiating position for terms. Most people are surprised at their report’s contents because errors in reporting are common. Now is the time to clean them up.
The documetation you may be required to provide to your mortgage broker is determined by the type of loan program that is chosen to be the best for your situation and circumstatnces. The most accurate method of determining what items will be needed is by analyzing the informatino provided on your application as well as the underwritting guidelines for the loan program. The loan officer's experience will enable him/her to guide you through th edocumentation process with as little trouble on your part as possible.
Common items required for a W2 wage earner are:
1. Current pay stubs to cover o one month period
2. W2's for the most recent two years
3. Two months most current bank/asset statements (all page)
4. Current homeowners insurance contact name and number
5. Copies of payment coupon/statement for existing mortgage lien(s) on the subject propery
If Self- Employeed:
1. Copy of your business license and/or letter from your CPA stating that they have
prepared your self- employed tax returns for at least two years.
2 Get pre-approved to determine how much you can borrow.
Once you get qualified you will have a good idea of how much you can afford. A pre-qualification gives you a no obligation quick and easy idea of what you can borrow. It is a helpful and painless first step. Pre-approval verifies your income, credit and debts. Sellers will obviously consider an offer more seriously that is pre-approved over one that is of unknown backing.
3 Work with our loan officers to find the best mortgage for you.
Your loan officer will help you find the mortgage that fits you best. There are a lot of factors to be considered. How long do you plan to keep the loan? Would a fixed or adjustable rate mortgage be best for you? How many points should you pay? What other costs are involved? Based on your needs and situation, your loan officer will show you which mortgage products work best for you. During the whole process, we are there for you to answer your questions with our years of experience.
We will review your loan application and supporting materials with you to make sure that your loan package is correct and as strong as possible.
4 Close your loan and settle
As your closing date nears, your mortgage broker and real estate agent should check its progress on a daily basis, because staying on top of things means you’ll know immediately if there’s a problem that must be dealt with.
For your closing you should bring all of your documentation that you’ve used during the whole mortgage shopping process. At the closing itself, everyone involved in your transaction will be present (buyer, seller, closing agents and attorneys). You will sign the necessary legal documents, pay your closing costs and escrow items and receive your closing documents.
Now you receive your key, move in and celebrate!
Remember, you should never hesitate to ask questions. Ask what ever you need to so that you understand the entire process. |
