Loan Process

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Organize your documents 

If buying or refinancing a home – Basic additional documents could be requested depending upon your situation. 

1.      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 YTD profit and loss statement.  Often times we do not need this level of documentation.  It is dependent upon the credit profile.

2.       If you own rental property, please provide rental agreements and two years tax returns.

3.      If you wish to speed up the approval process, please also provide the most recent three months bank statements for each bank, stock and mutual fund account.

4.    Provide recent copies of any stock brokerage or IRA/401K accounts that you may have.

5.     If requesting a "cash out" refinance please provide a signed letter explaining what you plan to do with the proceeds.

6.    If refinancing please provide a copy of the note on your first mortgage.  This will normally be found in your closing loan documents. 

7.       Provide a copy of divorce decree if applicable.

8.      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.

To print a check list with this information click here:  Interview Check List  

Get Qualified 

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.  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.  Find out the maximum house you can buy, so you don’t waste time looking for properties you cannot afford.  This puts you in a stronger position when  negotiating with the seller because the seller knows that your loan is already approved.  This also helps you close quickly since your loan is already pre-approved 

Choose Program/Rate and Formally Apply 

1.      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.

2.   Understand the relationship between rates and points.  Points are considered to be prepaid interest.  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  get.  Choosing the loan program and rate can be difficult:  With so many programs to choose from, each of which has different rates, points and fees,  hard to figure out which program is best for you.  That is where an experienced loan officer can help you make a decision that is best for you.  Let us simply your life.

3.       Sign all necessary documentation.

Processing Your Loan 

     We will verify: 

a)       Credit history

b)       Employment history

c)       Assets including your bank accounts, stocks, mutual fund and retirement accounts

d)       Property value 

This is called processing: 

Obtain Loan Approval 

Based on your specific situation, additional documents or verifications may be required.  To improve your chances of getting a loan approval: 

1.       Give complete information to loan officer.

2.       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.

3.       Do not make any major purchases. Do not buy a car, furniture or another house during the mortgage application process. 

4.       Do not move money into your bank accounts unless its source can be tracked.

5.       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. 

Close The Loan 

After your loan is approved,  be required to sign the final loan documents. 

1.      Bring a cashiers’ check for any down payment or closing costs, if required.  Personal checks are not normally accepted.

2.      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.

3.       Sign the loan documents. 

On owner occupied refinance and home equity loan transactions federal law requires that you have 3 business days to review the documents before your loan transaction is considered consummated.

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