What To Expect

What To Expect

Overview of the loan process!

Here is an overview of the loan process. This will change according to the product that fits your needs but this provides a generalized list of items to expect for most home loans. Based on the mortgage product for you, the licensed loan officer will discuss what may additionally be need or omitted from this list.

1.Know your goals and organize your documents

  • What are your intentions?
    1. Purchase a new home
    2. Refinance to a lower rate
    3. Refinance to a lower rate and pay bills or obtain cash
    4. Obtain a credit line on your
    5. Convert your equity into cash if 62yrs of age or older (reverse Mortgage)
  • Discuss your intentions with a licensed Loan Officer
  • Obtain necessary documents
    1. Past 2 years tax returns and W-2’s
    2. Past 2 year employment history
    3. Recent paystubs
    4. Last 2 months bank statements, CD’s, Money Market Accounts
    5. Statements for retirement accounts
    6. Last month’s ,mortgage statement
    7. Copy of home owner’s insurance
    8. Copy of Drivers License or State issued ID
    9. Copy front and back of green card if you are not a permanent citizen
    10. Divorce Decree (if applicable).

2.Have a licensed Loan Officer get you qualified

  • Let the loan officer know your pertinent information
    1. How long do you plan on owning the home
    2. Do you want to pay off debts or take cash out
    3. Is this for your primary residency or for a vacation or investment property
  • The loan officer will pre-qualify you and tell you how much you can afford
    • What is the maximum affordable home value in your budget
    • Verify your credit history, Income, Assets and Liabilities
    • Pre-Approval will help you further negotiate when purchasing a new home

3.Apply for the loan

  • Apply online, in person or over the phone with a licensed loan officer
    1. Loan Officer will fill out formal 1003 residential loan application
    2. They will provide a loan info sheet, credit authorization and fair lending notice
    3. Loan Officer may ask for additional documentation at this point to further the application process

4.Loan Approval

  • Loan Officer and Lender will verify your financial history including
    1. Credit History
    2. Employment History
    3. Assets, bank accounts, mutual funds, stocks, investments, rental income, etc.
    4. Title insurance will be ordered at this point as well
    5. Interest rates may be locked during this period
  • Increase Approval Chances
    • Fill all necessary loan applications thoroughly
    • Respond promptly to loan officer if they require additional documents
    • Do not increase personal debts at this time since it may affect you negatively
    • Work out a generalized closing date with your loan officer to make sure there are no schedule conflictions to close

5.Close the Loan

Once you receive loan approval a closing will be scheduled

  • Closing may be scheduled at lender’s office, at attorney’s office or in your own home
  • Closing will take place in the presence of a notary public
  • Be prepared to bring
    1. Cashier’s check for down payment if necessary
    2. Review final loan documents and CD (Closing Disclosure) to verify the proper terms and amounts discussed
    3. Bring picture ID to show notary public
    4. Sign loan documents including CD, Mortgage, Note, Right to Cancel, etc.
  • After signing of all docs please review the 3 day right to cancel process. Federal law requires all lenders to provide borrower’s three days to review the loan and cancel if they do not agree to the terms. Purchase transactions do not have a three day rescission period as funds are usually disbursed right away.