Organize your documents
If you are buying or refinancing a home
1. 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.
2. If you own rental property, please
provide rental agreements and two years tax returns.
3. If you wish to speed up the approval
process, please also provide three months bank statements
for each bank, stock and mutual fund account.
4. Provide recent copies of any stock
brokerage or IRA/401K accounts that you may have.
5. 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.
6. 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
1. 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.
2. If you own rental property, please
provide rental agreements and two years tax returns.
3. Please provide a copy of the note
on your first mortgage. This will normally be found
in your closing loan documents.
4. Please provide a signed letter explaining
what you plan to do with the proceeds.
5. Provide a copy of divorce decree
if applicable.
6. 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.
Get Qualified
Getting qualified before you apply for a loan can
help you understand how much you can borrow.
When buying a house, you may get pre-qualified or pre-approved.
You can typically get pre-qualified over the phone or
on the Internet in a few minutes. A pre-qualification
is not as beneficial as a pre-approval where you have
to go through a more rigorous process which 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:
1. Find out the maximum house you can
buy, so you don't waste time looking for properties
you can not afford.
2. Puts you in a stronger position
when you are negotiating with the seller, because the
seller knows that your loan is already approved.
3. Helps you close quickly, since your
loan is already approved.
Shop loan programs and rates
To shop for a loan you will need to:
1. 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.
2. 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.
3. Compare different programs. Shopping
for a loan can be difficult. With so many programs to
choose from, each of which has 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 a decision that's best for you.
Obtain Loan
Approval Once your loan application has been received
we will start the loan approval process immediately.
This involves verifying your:
1. Credit history
2. Employment history
3. Assets including your bank accounts,
stocks, mutual fund and retirement accounts
4. Property value
Based on your specific situation, additional documents
or verifications may be required. To improve your chances
of getting a loan approval:
1. Fill out the loan application completely.
2. 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.
3. 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.
4. 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.
5. 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.
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:
1. Bring a cashiers check for your
down payment and closing costs if required. Personal
checks are normally not accepted.
2. 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.
3. 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.
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