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Organize Your Documents
A properly documented loan application makes your loan
process go smoothly. This checklist will help you gather
your paperwork.
- Complete and sign the residential loan application,
Form 1003, and the attached loan info sheet, credit
authorization and fair lending notice. Page 5 of the
application is a continuation page in case you need
additional space for your assets or liabilities. If you
make a mistake while filling out the application cross
it out, and make a change. Do NOT use whiteout.
- If you are salaried: provide W-2's for the previous
two years and one month of paystubs. If you are
self-employed, provide tax returns for the previous two
years, including all schedules, and a YTD profit and
loss statement. (Note: provide copies of all requested
documents. Do not provide original documents.)
- If you own rental property, provide recent rental
agreements and tax returns for the previous two years,
including all schedules.
- To speed up the approval process, provide bank
statements for the most recent three months, and recent
statements for stock, mutual funds and IRA/401K
accounts.
- If you are requesting a cash out refinance, provide a
letter explaining how you will use the refinance
proceeds.
- If applicable, provide a copy of your divorce decree
and settlement agreement.
- If you are NOT a US citizen, provide a copy of your
green card (front & back). If you are NOT a
permanent resident provide a copy of your H-1 or L-1
visa.
- If any borrower has filed bankruptcy, provide the
Discharge Notice, Filing and Schedule of Creditors.
- If you are applying for a home equity line of credit
or loan (second loan), also include your first mortgage
note. (This should be with your closing loan documents.)
Get
Qualified
Getting qualified before you apply for a loan can help you
understand how much you can borrow.
When buying a home, you may be pre-qualified or
pre-approved. You can be pre-qualified over the phone or on
the Internet in a few minutes. Pre-qualification is not as
useful as pre-approval. Pre-approval requires a more
rigorous process, including verification of your credit,
income, assets and liabilities. It is highly recommended
that you be pre-approved before you start looking for a
home.
Being pre-approved will:
- Inform you of your maximum affordable home value, and
save you from previewing properties outside your price
range.
- Put you in a stronger negotiating position with the
seller, because the seller will know your loan is
pre-approved.
- Help you close quickly, since your loan is
pre-approved.
Shop Loan
Programs and Rates
What loan program is best for your situation? Lenders offer
many different loan options:
- Think about how long you plan to keep the loan.
If you plan to sell your home in a few years, you may
want to consider an adjustable rate or balloon loan. If
you plan to keep your home for a longer time, you may
want to consider a fixed rate loan.
- Understand the relationship between rates and
points. Points are considered prepaid interest and
may be tax deductible. Each point is equal to 1 percent
of the loan. For example 1 point on a $150,000 loan is
$1,500. The more points you pay, the lower your rate.
- Compare different loan programs. With so many
programs to choose from, it's hard to figure out which
program is best for you. Consult an experienced loan
officer who can help you find a loan program that best
fits your short- and long-term plans.
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.
- Notify your loan officer before applying for any
other credit, including credit cards, personal loans or
even with another mortgage company. Some loan programs
have strict guidelines regarding your credit score.
Credit inquiries may lower your credit score and may
have an adverse affect on your loan approval.
Close the
Loan
After your loan is approved, you will be required to sign
the final loan documents. This will normally take place in
the presence 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 the accuracy of the name and address on the
loan documents.
- Sign the loan documents. The notary will require that
you have your picture ID with you. Some lenders also
require to see your Social Security card.
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 three days
to review the documents before your loan transaction can
close. Purchase transactions do not have a three day
rescission period. |
Equal Housing
Opportunity