The Loan Process
We know that your time is valuable so we do all we can to save you time. We can meet with you personally to answer questions and to take an application or we can "meet" over the phone. It's your choice!. It typically takes 15 minutes to complete an application over the phone.
After taking a phone application we send you the loan application and standard disclosures for review and signature. Here is a list of the things we ask you to return with your application:
- Most recent year-to-date paystub(s), documenting one full month of earnings.
- Past 2 years W-2's
- Most recent bank statements (2 months)
- Most recent retirement and investment account statements.
- Most recent 2 years tax returns (if self employed, or have rental property)
- Copy of purchase contract (for a purchase loan)
- Current mortgage statement (for a refinance loan)
- Photocopy of your driver's license
- Copy of your homeowners insurance (for a refinance)
We include a prepaid return Fedex envelope, so that after signing, all you have to do is drop it in a Fedex box. Within 1 business day we will have a pre-approval ready for you. You can now begin your home search with a solid idea of what your monthly payment will be.
Once you identify a property and sign a purchase contract we will order an appraisal. The cost ranges between $385 - $450 (for a single family home) and can be paid by check or credit card. Obtaining an appraisal is a lending requirement, but it benefits you as well. It will confirm that you aren’t over paying for the property you selected. The appraisal is different from a home inspection. An appraisal is a written estimate of the value of a property. A home inspection is an objective visual examination of the physical structure and systems of a house, from the roof to the foundation. Although an inspection is not required for a loan, we highly recommend that you obtain a home inspection.
We will work with you the attorneys, Realtors, insurance agents and others involved in the process to collect all necessary documents for closing the loan.
The typical time to closing is 30 days, but we can close in as little as one week if necessary.
Prior to closing the loan we go over the numbers with you so there won’t be any surprises at the closing table, and so that you know how much to bring with you to cover your down payment, and closing costs.
The time between applying for a mortgage and the closing is important in how you manage your finances. Here are some tips:
Preparing for the Closing.
Please be aware that the information listed on your loan application is verified prior to the closing. Therefore, it is critical that employment, income, credit, and assets stay essentially the same, and that liabilities do not increase until after the closing. Changes in the following items could negatively affect your loan application:
- Any kind of job change, even a lateral transfer.
- Large purchases (including, but not limited to cars, furniture, motorcycles, etc.), that either deplete checking and savings accounts or increase credit card balances.
- Reductions to you down payment funds. Ensure that sufficient funds are set aside for your down payment, closing costs, and escrows for taxes and insurance. Don’t put these funds into something volatile, such as an individual stock. Use instead money markets or other accounts that offer stability, liquidity, and reasonable rates of return.
- Inquires on your credit report, such as applications for new credit cards lower your credit score. Only authorize someone to pull your credit report if absolutely necessary.
- Make sure that you pay all your bills on time—especially your mortgage or rent. In some cases a decrease in credit score can increase your interest rate, decrease the amount you can borrow, or even cause you to be disqualified for a loan.
If you need to make a change prior to the close and are not sure how or if it will affect your loan application please phone us to discuss the matter before making the change.