The Loan Process

We have detailed the home mortgage loan process to help you better understand and be prepared.

There is a lot of information in this segment.  It is not designed to frighten you.  We will do our best to make this process as painless and as seamless as possible.

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.
  6. Provide a copy of divorce decree if applicable.
  7. 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, we will get you pre-qualified or pre-approved. We will do this 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 allow us to get you 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

For us to shop programs on your behalf, 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 our experienced loan officers 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. We will fill out the loan application.
  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 hat 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.
  3. 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 loan transactions federal law requires that you have 3 days to review the documents before your loan transaction can close.

After your loan has final approval, or a "clear to close" from the lender, we will schedule closing with a title company.  The closing will take place at our office, in your home, or in the realtor's office, whichever is most convenient for you. In the case of a refinance transaction, we will generally be able to send the title company to your home for the closing for added convenience.