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General FAQs
We hope these FAQs will
answer questions you might have, but if you do not
find an answer to your question here, please
contact us and we will get an answer!
How does the loan process work?
The loan process can be broken down into 6 simple steps:
- Organize Your Documents:
For purchasing or refinancing your home/rental property:
- If you are salaried: provide
your last two years W-2's and one
month of pay-stubs; if you are
self-employed: provide your last two
years tax returns and a YTD profit &
loss statement.
- If you own rental property,
please provide rental agreements
- To verify assets, please provide
3 months bank statements for each of
your checking, savings & investment
accounts.
- If you are requesting a cash out
refinance, please provide a letter
explaining what you plan to do with
the proceeds.
- A copy of divorce decree, if
applicable.
- If you are NOT a US citizen,
please provide us with a copy of
your green card (front & back), or
if you are NOT a permanent resident,
please provide us with your H-1 or
L-1 visa.
- If you're applying for a home
equity loan, please provide a copy
of your first mortgage note. This
will normally be found in your
closing loan documents for your
first mortgage.
- Get Pre-Qualified:
Getting
pre-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 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 go through
a more rigorous process including
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 by:
- Finding out the maximum
house you can buy, so you don't
waste time looking for properties
you can't qualify for.
- Putting you in a stronger
position when you are negotiating
with the seller, because the seller
knows that your loan is already
approved.
- Allowing you to close quickly,
since your loan is already approved.
- Compare Loan Programs & Rates
At the time you apply for a loan, we'll
discuss with you available mortgage
programs & pricing. To make a more
informed decision, regarding which
program is more beneficial to you, you
need to consider the following things:
- Think about how long you plan to
keep the loan If you plan to sell
the house or refinance 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. You need to pick the loan program
that best fits your lifestyle & future
plans.
- Understand the relationship
between rates and points: Points (a
point equals 1% of the loan amount) are
considered to be prepaid interest and
are tax deductible. The more points you
pay, the lower the rate you will get.
- Keep an open mind regarding
pricing options:
Remember this phrase: The Total
Cost of the Loan is What Matters Most.
To view a Total Cost Analysis report,
which compares several rate/cost
options:
Click Here for PDF Version
Click Here for HTML Version with report
details
- Apply for a loan
Once you've gathered all your
documents & have spoken with us
regarding loan program & pricing
options, it's time to apply for the
loan. At the time of application, we
will present you with a completed loan
application & preliminary loan
disclosure documentation for your
signature, as required by Federal Law.
You've made no permanent commitment
here, you've just agreed to investigate
whether you can qualify for your chosen
program.
- Obtain Loan Approval
Once your loan application &
preliminary loan documents have been
signed, we will start the loan approval
process immediately. This involves
verifying your credit history,
employment history, assets (including
your bank & investment accounts), and
the value of the property in question.
Based on your specific situation,
additional documents or verifications
may be required. To improve your chances
of getting a loan approval, be sure you:
- 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.
- Continue to make on-time
payments on all credit accounts,
even if you plan to pay off credit
accounts in a refinance.
- Avoid making credit account
purchases. Any credit debt increases
may prevent you from being approved.
- Do not move money into your bank
accounts unless it can be traced.
- Plan to be in town around the
closing date, as you will need to be
available for signing documents in
escrow.
- Close The Loan
After your loan is fully approved &
loan conditions have been met, you will
need to sign the final loan documents.
This is typically done at an escrow or
title company. Be prepared to:
- Bring a cashiers check for your
down payment & closing costs (if a
purchase). Personal checks are not
acceptable.
- Review the final loan documents.
Make sure that the interest rate and
loan terms are what you thought the
were, and that the name and address
on the loan documents are accurate.
Your loan will normally close shortly
after you have signed the loan
documents. On owner occupied refinance &
home equity loan transactions, federal
law requires that you have 3 days to
review the documents before your loan
transaction can close.
What are the benefits of the Preferred Provider Program?
Please see the specific benefits for each
Provider type at the links below:
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