An overview of the loan process
Make no mistake, there's a lot involved in getting a mortgage loan. You wouldn't be here on our website if you could fill out a one-page application and get the best loan for you funded the same day. What we do is most of the heavy lifting for you, so you can concentrate on what's important -- preparing to move into your new home and saving money. There are five main steps involved in getting a loan. You'll see that we've made your part in them as easy as possible, and we do all the work! That's what we're here for.
|Step one: Organize your documents|
Your loan officer will provide you a list depending on your income, employment situation, and living arrangements. Generally, however, the list is:
The last two years of w-2’s and federal tax returns
The last two months of bank statements – All pages, official statements (PDF official statements are acceptable)
The most recent portfolio account statement (401K, IRA, Stock, Mutual Funds, etc.)
The most recent month of pay stubs
The most recent mortgage statement (s)
A copy of your ID and Social Security card
|Step two: Get Qualified|
This is where the rubber meets the road and you are able to determine how much of a home that you can afford. You supply information about your employment, your assets, your residence history, and so on. Then, we get your permission to review your credit report. When we review all this information we can provide you with a pre-qualification letter. This gives you an idea of how much the home will cost you on a monthly basis. We've had clients come down from the approved amount to a more comfortable monthly expense. We've also had others who realize that they need more income or need to pay off more debt before moving on to the next step. Most are excited to make offers on a property!
|Step three: Apply for a loan|
Once you've made an offer and it's been accepted, it's time to complete the loan application. It couldn't be easier and you can do it online! When the time is right, we'll order an appraisal of your new home request a title search and ensure that you are protected all the way through the transaction. At this point, we can lock rates, review accurate payments, and select the right loan program for your homeownership goals.
Step four: Obtain loan approval
At first, the lender provides us with a conditional loan approval. This means that we need to comply with the conditions in order to obtain approval. In this stage of the process, we prove that you are capable of taking on the financing. We also prove that the home is worth lending-on. This is usually the longest part of the process, besides finding the home and getting an accepted offer. We ensure that you are well-informed in this phase of the process and we may ask you to provide us with more information, perhaps only updated pay stubs or bank statements. At this point everyone is working for you, from Realtors to appraisers, your insurance company, and your lender.
|Step Five: Close your loan|
A final approval is issued and we order loan documents. We coordinate a closing time and place with the escrow company to make sure all docuements are in-order. In most cases, you may sign closing documents in the comfort of your home or conveniently, at your office. Shortly after the lender receives your loan documents, the loan funds and the keys are yours. Its time to celebrate!
Now that you know the steps you are ready to apply for a loan with confidence. Allow us to coach you through the process, that's what we are here for!