The Loan Process

1) Prepare your documents and finances

The first step is to obtain and review your credit report. You can receive a free credit report by visiting annualcreditreport.com and requesting it from any of the major credit bureaus; Experian, Equifax or Transunion. Your credit report will be used by your lender as a reflection on how you have managed your finances in the past and how you manage them presently. If you have a good credit rating, this gives you added leverage when negotiating the terms of your loan. It is important to review your credit report for errors as it is fairly common to have some on your credit report. If you find any errors, try and get them addressed before working out the terms of the loan.

You should also have on hand the following:

The last two 2 years of W-2s and 1099s
Employment pay stubs for the last 3o days
If you are self employed, you will need the last two years’ tax returns and a Year To Date profit and loss statement as well
Your current mortgage statement
Proof of additional income
A copy of your homeowner’s insurance policy
A copy of your deed
Current loan provider
For a home equity loan, provide a copy of the note on your first mortgage.
Title information
Tax verification information
Previous property assessments, if applicable
If you own any rental property, provide copies of all rental agreements and two years of tax returns
Name, address and telephone number for all employers for the past 2 years
Letter from your current employer stating date of hire, position, salary and year-to-date earnings
Current value of your home
Any outstanding loan amounts
Three months bank statements for each bank, IRA/401K, stock and mutual fund account.
Co-borrower information
Provide a copy of divorce decree if applicable.
If you are not a US citizen, provide a copy of your green card (both sides)
If you are not a permanent resident provide a copy of your H1 or L1 visa.

2) Get pre-approved for the borrowing amount

Once you have been qualified for a loan, you’ll have a good general idea of what you can work with in regards to your current financial situation. Getting pre-qualified for a loan gives you a good idea of how much you can borrow, plus there is no obligation and it’s a pretty quick process. This step will verify your income amount, rate based on your credit score and any current or debts that you’ve accrued. While this step does take a little bit of time and is not free, but it proves to be very beneficial when making an offer on a potential property. A seller will undoubtedly take an offer from a pre-qualified buyer over one that hasn’t been pre approved and seems only to be casually browsing.

3) Meet with our loan professionals

Our loan officer will work with you and help you find the perfect mortgage for you based on your needs and your present financial and credit situations. Some of the things our loan officer will go over with you include:

How long of a term do you want the loan for?
Which loan type will be best for you, a fixed rate or adjustable rate?
What interest rate should you pay for your loan?
What are the additional costs involved in obtaining the loan?
When should you lock in your rate?

Our mortgage professionals will work with you, hand in hand, to determine the best mortgage product for your situation. We are here to help you, you are in control, and we will answer any questions that you have based on our years of experience in the mortgage loan field.

We will also personally review your loan application and documentation to make certain that your information is in order and to help you to present the strongest portfolio as possible. At this point we will forward you loan application to several lenders within our extensive network to find you the best deal.

4) Closing the deal

As the closing day approaches, your real estate agent and mortgage broker should check the progress regularly. Keeping close tabs on the process helps you to deal with any problems that might arise and will help you to deal with them quickly.

When closing you need to have all the documentation that was utilized during the application process. Upon closing, when all involved parties are present, you will have to sign some legal documents, pay your closing costs and escrow items. Once this is finished you will receive the closing documents.

That’s it! You’ve closed your deal, it’s over and you’ve got your loan.

Please keep in mind, if you have any questions during the loan process: please ask! We are here to help you get the loan that you are looking for.