Loan Process for Home Owners

1.Dream of a new home:
Every couple or a working individual has dreams of owing their own home. Owning a home is indeed a key to long term financial security and independence. Buying a home is the single most important economic decision in one’s life and one must be prudent and careful in selecting the appropriate mortgage lender. We offer unique and exceptional customer service with free loan analysis and recommendation of appropriate loan programs best suited to your needs.

Select a new home to buy:
However, selecting a new home is another vital decision and it must be done with proper consultation and through a reputable real estate agency. Your home is your investment and your dwelling as well, and it must be selected with care. If you have not selected a home thus far and would like to buy one or refinance your existing home, we have the expertise to meet your home loan needs. Meet or call your mortgage analyst to find out how much you qualify for. Find out if you can lower your existing monthly payments on your current mortgage or get the cash you need. You can begin the loan application process by getting your loan pre-approved.

2. Apply to Purchase a home or to Refinance
The key to start the loan process is to apply for a loan. Applying for a mortgage loan is merely a process to collect appropriate information regarding your income and credit history, however, it is the most essential step towards owing or refinancing a home. Don’t hesitate in applying for a loan, there is no obligation. Starting with the information you provide us, we will work to obtain approval for a loan that meets your purchase or refinance needs.

3. Get pre-qualified and then get pre-approved:
Get pre-qualified. First and foremost it puts you in a position as a homebuyer to know exactly how much you can afford. In addition, as a pre-qualified buyer you have a stronger standing than a buyer who is not pre-qualified. It is an important advantage in today’s fast paced real estate market. Next, get pre-approved. A pre-approval shows that you have provided the complete paper work (listed below) and your loan has been underwritten and approved. A pre-approval is strongly suggested as it will show the seller of a home that you are serious and qualified. It will also help to close the loan quickly and get you into your new home.

4. Shopping for the Right Loan
Looking for the right loan program can be difficult with so many types of loans to choose from. We recommend that a buyer consider some questions before buying a new home. Is this a starter home? Will I be moving in five years? How much can I afford per month? How much cash do I have available for down payment and closing costs? What will the payment be? Is this the right house for me? Is this the right loan program for me? Different loan programs work to your advantage in different situations. If you’re planning on staying in your home for several years a fixed loan may be best. On the other hand, if your goal is to sell in just a few years an adjustable rate with a lower initial interest rate or an interest only option may work more to your advantage.

Another key factor in understanding different loan programs is to be aware of the relationship between points and interest rates. The more points you pay the lower the interest rate may be. A point is considered prepaid interest and is tax deductible. Each point is one percent of the loan amount. Paying points on your loan can lower your interest rate but increase your upfront costs.

Shopping for and comparing loans can be tricky. There are many programs, each with different rates and different points. What loan is right for you? We take pride in our seasoned loan analysts and their ability to help you choose which loan is appropriate for your goals and needs.

5. Organize essential documents and get credit report

Purchase a Home

1. Last two years W-2s and current pay stubs covering one month for salaried employees.
2. Self-Employed persons please provide the last two years of tax returns and an YTD profit and loss statement.
3. For rental properties please provide rental agreements and the last two years of tax returns.
4. The last three months of current bank statements for each account.
5. Copies of 401K, IRA, Pension or other retirement savings.
6. Divorce Decree, if applicable.
7. Bankruptcy papers (all schedules) and Discharge if applicable.
8. Name and address of your landlord, if applicable
9. Letter to explain any derogatory credit.

Refinance a Home

1. Last two years W-2 and one month of current pay stubs for salaried employees.
2. Self-Employed persons please provide the last two years of tax returns and an YTD profit and loss statement.
3. For rental properties please provide rental agreements and the last two years of tax returns.
4. Most recent mortgage statements on all owned properties.
5. The last three months of current bank statements for each account.
6. Copies of 401K, IRA, Pension or other retirement savings.
7. Divorce Decree, if applicable.
8. Copy of Homeowners/Hazard Insurance Policy
9. Names, address, phone numbers and account numbers of creditors to be paid at closing.

Get a Credit Report

Obtaining a credit report is essential and it has to be done in the early phase of the loan application and loan process. A lender is not in a position to offer or quote an interest rate or a loan program without knowing your FICO score or without examining your credit report. Perfect credit, not so perfect credit, or even bad credit doesn’t imply that you are automatically approved or can not be approved for a loan, and it also doesn’t imply that you have less chances with bad and more chances with good credit. It is merely a device to determine a loan program and interest rate, but an essential and necessary step that every loan applicant must take.

6. Select loan program and lowest rate

Choose a loan program

30 year fixed
15 year fixed
1 Year Adjustable Interest Rate (ARM)
2 year ARM
5 year ARM

Choose a loan type

Jumbo loan
Conforming Loan
Refinance with cash out
Refinance with no cash out
No Closing Cost Loan
FHA Loan
VA Loan
Cal Vet Loan
Imperfect Credit Loan
No income verification loan
Commercial Real Estate
Equity Loan

7. Loan approval and sign the documents

Once we have received your completed loan application, our approval process begins. This involves verifying the following information:

Additional documents or verifications may be requested depending on your individual situation.

Helpful hints to improve your chances of a loan approval:

1. Fill out the loan application completely and clearly.
2. Provide requested documents requested in a prompt manner, this can be especially crucial if you have planned to close your loan on a certain date or have a rate locked in.
3. Do NOT make any large purchases. Increasing your debt can have a negative affect on your current application. Large purchases include, but are not limited to: automobiles, furniture, appliances, another house or time-share.
4. Bank account balances may be verified shortly before the close of a loan, be sure not to move money out of your account. If you move money into your account you will need to show where it came from. If you are receiving a “gift of money” from a friend or relative be sure contact your loan officer to get a form to use as a “gift letter”.

After your complete loan application is approved and any additional items have been turned in your final closing papers will be drawn. You will be contacted for an appointment to sign them in front of a notary. After you sign, they will be returned to the lender for final review and funding. After the loan is funded and the money is disbursed, title to the home will record in your name.

8. You now own your new home.