The Loan Process
Save time and avoid delays by having this information available when you meet with us.
- Copy of Purchase Sales contract or Offer to Purchase and all addenda (signed by buyer and seller)
- Past 2 years' tax returns and W-2s
- Past 2 years' employment history
- Last 1 month consecutive paycheck stubs
- Last 2 months' statements for savings, checking, CD, money market accounts, etc. (all pages) if you will need that money to close.
- Divorce decree (if applicable)
- Bankruptcy schedules/Discharge papers (if applicable)
- A clear copy of each borrower's Driver's License or Photo ID (cannot be faxed)
- If you are NOT a US citizen, provide a copy of your green card (front & back). If you are NOT a permanent resident provide a copy of your H-1 or L-1 visa.
Find out how much you are qualified to borrow
When buying a home, you may be pre-qualified or pre-approved. You can be pre-qualified over the phone or on the Internet in a few minutes. Pre-qualification is not as useful as pre-approval. Pre-approval requires a more rigorous process, including verification of your credit, income, assets and liabilities. It is highly recommended that you be pre-approved before you start looking for a home.
Being pre-approved will:
- Inform you of your maximum affordable home value, and save you from previewing properties outside your price range.
- Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved
- Help you close quickly, since your loan is pre-approved.
Shop Loan Programs and Rate
What loan program is best for your situation?
- Think about how long you plan to keep the loan. If you plan to sell your home in a few years, you may want to stay with the market rate instead of paying to get the lower interest rate. If you plan to keep your home for a longer time, you may want to consider a lower rate.
- Understand the cost of getting a lower than market interest rate. The more money you pay at closing to get the rate, the lower your rate.
- Compare different loan programs. With so many programs to choose from, it's hard to figure out which program is best for you. We can help you find a loan program that best fits your short- and long-term plans.
Apply for the Loan
All the research and preparation you've done to this point makes this step an easy one.
You have already done this step by filling out the online application. We may also request additional documents from you once the lender reviews your file.
Obtain Loan Approval
Once your loan application has been received, the loan approval process starts immediately. This involves verifying your:
- 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.
To improve your chances of getting a loan approval:
- Fill out the loan application completely.
- 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.
- Anything that causes your debts to increase might have an adverse affect on your current application.
- Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us.
- 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.
- Notify your loan officer before applying for any other credit, including credit cards, personal loans or even with another mortgage company. Some loan programs have strict guidelines regarding your credit score. Credit inquiries may lower your credit score and may have an adverse affect on your loan approval.
Close the Loan
After your loan is approved and everything is approved, you will be required to sign the final loan documents. This will normally take place in the presence of a notary public. Be prepared to:
- Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally NOT accepted.
- Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify the accuracy of the name and address on the loan documents.
- Sign the loan documents. The notary will require that you have your picture ID with you. Some lenders also require seeing your Social Security card.
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 three days to review the documents before your loan transaction can close. Purchase transactions do not have a three-day rescission period.