An Overview of the Loan Process

Organize Your Documents

A properly documented loan application makes your loan process go smoothly.

This checklist will help you gather your paperwork.

1. Income Verification 

          Salaried Employees: Provide W-2's for the two previous years(2006 & 2007) and
          a month of your most recent pay stubs (4 if weekly, 2 if bi-weekly, 1 if monthly).   

          Self-employed: Provide 2-years tax returns with all schedules, and a YTD profit
          and loss statement.

    2.   Asset Verificaiton

          Provide bank statements for the most recent three months, and recent 
          statements for stock, mutual funds and IRA/401K accounts.
          We also need the source of any gifts used for downpayments 

    The following may or may not apply... 

    3.   Rental property - Provide recent rental agreements and tax returns for 
          the previous two years, including all schedules.

    4.   Divorce - Provide a copy of your divorce decree and settlement agreement.

    5.   US Citizen - If you are NOT provide a copy of your green card (front & back). 
          Permanent Resident - If you are NOT provide a copy of your H-1 or L-1 visa.

    6.   Bankruptcy - Provide the Discharge Notice, Filing and Schedule of Creditors.

(Note:  Provide COPIES of all requested documents - NOT originals.)

Getting Qualified and APPROVED

Understand the difference between Pre-Qualifed and Pre-Aproved...

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 and not widely accepted.
Basically you tell us about your income, assets, liabilities and credit rating. 

Pre-Approval takes the qualification process one step further - verification.
We verify your credit, income, assets and liabilities and produce an approval.

Make sure to be Pre-Approved before you start looking for a home.

Being pre-approved will:

1. Save you from previewing properties outside your price range.
2. Put you in a stronger negotiating position with the seller.
   Most Sellers and Relators will want a Pre-approval.
3. Help you close quickly, since your loan is pre-approved.
   

Obtain Loan Approval

We start the approval process upon receipt of the application - verifying your:

• Credit history
• Employment history
• Assets including bank accounts, stocks, mutual fund and retirement accounts
• Property value with an Appraisal 
• Additional documents or verifications may be required

To improve your chances of getting a timely loan approval:

• Respond promptly to any requests for additional documents.
  Important if your rate is locked or if you plan to close by a certain date.

Do's and Don'ts for Loan Approval

There are various actions that can adversely affect your approval:

• Continue to pay all your bills on time - including an existing mortgage.
• Do NOT make any major purchases.
  Do not buy a car, furniture or another house until your loan is closed.
• Do NOT open any new accounts or have your credit pulled. 
  Any increase in your debts might have an adverse affect on your application.
• Do NOT move money into your bank accounts unless it can be traced.
  If you are receiving money from friends, family or others, please contact me.
• Do NOT quit your job or change employers without notifying me first.
  

Close the Loan

After your loan is approved, you will be required to sign the final loan documents.
This will normally take place at a local Title Company in the presence of a notary.
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 - verify the accuracy of your name and address.
• Sign the loan documents. The notary will require that you have your picture ID.
  

Federal law requires a 3-day recission period for refinance and home equity loans.
Investment properties and all purchase transactions will fund the very same day.