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1. Organize your
loan related documents
If you are buying or refinancing a home
- If you are salaried: provide two years W-2 and one month of
paystubs OR if you are self-employed: provide two years tax returns
and a YTD profit and loss statement.
- If you own rental property, please provide rental agreements
and two years tax returns.
- If you wish to speed up the approval process, please also provide
three months bank statements for each bank, stock and mutual fund
account.
- Provide recent copies of any stock brokerage or IRA/401K accounts
that you may have.
- If you are requesting a cash out refinance please provide a
letter explaining what you plan to do with the proceeds.
- Provide a copy of divorce decree if applicable.
- If you are NOT a US citizen, provide us with a copy of your
green card (front & back), or if you are NOT a permanent resident
provide us with your H-1 or L-1 visa.
If you are applying for a home equity
loan
- If you are salaried: provide two years W-2 and
one month of paystubs OR if you are self-employed: provide two
years tax returns and a YTD profit and loss statement.
- If you own rental property, please provide rental
agreements and two years tax returns.
- Please provide a copy of the note on your first
mortgage. This will normally be found in your closing loan documents.
- Please provide a signed letter explaining what
you plan to do with the proceeds.
- Provide a copy of divorce decree if applicable.
- If you are NOT a US citizen, provide us with a
copy of your green card (front & back), or if you are NOT a permanent
resident provide us with your H-1 or L-1 visa.
2./3. Visit
with your loan officer for loan programs & rates
To look for a loan you will need to:
- Think about how long you plan to keep the
loan. If you plan to sell the house in a few years you may
want to consider an adjustable or balloon loan. On the other
hand, if you plan to keep the house for a longer time, you
may want to look at fixed loans.
- Understand the relationship between rates
and points. Points are considered to be prepaid interest
and are tax deductible. Each point is equal to one percent
of the loan. So for example 1 point on a $150,000 loan is
$1,500. The more points you pay, the lower the rate you
will get.
- Compare different loan programs with your
loan officer. With so many programs to choose from, each
with different rates, points and fees, it's hard to figure
out which program is best for you. That's where an experienced
loan officer can help you make the right decision.
4. Loan Qualification
Getting qualified before you apply
for a loan can help you understand how much you can borrow.
When buying a home, you can get pre-qualified
or pre-approved for a mortgage loan. You can typically get
pre-qualified over the phone or on the Internet in a few minutes.
A loan pre-qualification is not as beneficial as a pre-approval
where you go through a more rigorous process that includes
verification of your credit, income, assets and liabilities.
It is highly recommended that you get pre-approved before
you start looking for a house. This will help you:
- Find out the maximum house you can buy, so you
don't waste time looking for properties you can not afford.
- Puts you in a stronger position when you are negotiating
with the seller, because the seller knows that your loan is already
approved.
- Helps you close quickly, since your loan
is already approved.
5. Obtain
Loan Approval
Once your loan application has been received
we will start the loan approval process 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.
- Do not make any major purchases. Do not buy a car,
furniture or another house till your loan is closed. 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.
6. Close
the Loan
After your loan is approved, you will be required
to sign the final loan documents. This will normally take place in
front 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 that the name and address on the loan documents are accurate.
- Sign the loan documents.
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 3 days to review the
documents before your loan transaction can close. -Top
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