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Organize
your 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.
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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:
- 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.
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Shop loan programs and
rate
To shop 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 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.
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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.
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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.
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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