Confused on how to start your loan process?
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There are five basic steps in the loan process. Here is a roadmap to guide you through the details of getting your new loan:

  1. Organize Your Materials

  2. Qualify For Your Mortgage

  3. Compare Loan Programs

  4. Get Your Loan Approved

  5. Close Your Mortgage

A. Organize Your Loan Materials

  1. In order to document your income, you will need to provide two years W-2 statements and one month of paystubs. You will need to provide two years tax returns if you are self-employed.

  2. If you own rental property, you must provide current lease agreements as well as the most recent two years tax returns.

  3. In order to expedite the loan approval process you should plan to provide two months statements for all of your banking and investment accounts that currently hold funds that will be used for the closing. Any large non-payroll deposits will need to be sourced.

  4. If you request cash back from a mortgage refinance, you will need to include a letter explaining how you intend to use the money.

  5. Non-US citizens must provide a copy of their current green card or visa.

B. Pre-Qualify For Your Mortgage

We recommend that you get pre-approved for your mortgage before you begin shopping for a new house. When you are pre-approved, you have several advantages:

  1. You will find out the maximum mortgage amount that you can qualify for.

  2. Since the seller knows your loan is already pre-approved.

  3. Your loan will close quicker.

C. Compare Loan Programs

When you’re shopping for a loan, there are several considerations you will want to keep in mind:

  1. How long do you plan to stay in your home? If you plan to remain in your home for many years, you’ll probably want to look at fixed rate loans. However, if you are going to be selling the home within a few years, you may want to consider an adjustable rate mortgage.

  2. Do you know about the difference between rates and points? Points are typically tax deductible as they are considered prepaid interest but we always recommend you consult your tax professional. A single point equals one percent of the total loan amount and can be used to obtain a lower interest rate. As an example, one point on a $200,000 loan is $2,000.

  3. Have you compared different programs? As you navigate the confusing variety of loans to choose from, each with different rates, points and fees, it’s difficult to know what program suits you best. That’s why it’s helpful to have an experienced loan officer guide you through the process.

D. Get Your Loan Approved

Your loan approval process starts as soon as we receive your application. In order to approve your loan, we will verify your:

  1. Credit history

  2. Employment history

  3. Financial assets

  4. Property value

Since every circumstance is unique, you may be asked for additional documents to verify your application. You can help expedite this process when you:

  • Fill out your loan application completely.

  • Respond as soon as possible to requests for additional documents. This is very important if your rate is locked or if you intend to close by a certain date.

  • Defer major purchases. You may adversely affect your application if you buy a car, furniture or another major purchase while your loan is in process.

  • Avoid any major deposits to your banking accounts that cannot be verified.

  • If you will be out of town near the loan closing date, plan to sign a power of attorney in order to authorize someone else to sign on your behalf.

E. Close Your Mortgage

Once your loan has been approved you will need to sign the final loan documents in the presence of a closing agent. Prior to or at the closing, you will need to:

  • Review your final loan documents. Check the interest rate and loan terms to verify that they are the terms you agreed to. Make sure that all names and addresses on the loan are correct.

  • Sign the loan documents.

  • Wire the funds for your down payment and closing costs to the closing agent.

Most home loans will fund shortly after the final documents have been signed. If you are refinancing you have 3 business days to review the documents before the transaction can fund.