Whether it is your first home or you’re a seasoned homeowner, knowing what to expect in the process can be a great comfort in today’s market.
Here is an overview of how the loan process works
Jim will listen to your wants and needs, and then gather information from you on the loan application and discuss the various loan programs that you may qualify for and that fit your needs. In addition to the application, you will be requested to send over support documents, i.e. Tax Returns, Pay stubs, Asset statements, etc.
There are three major pieces to a loan approval “recipe” – they are
1. Credit, 2. Income, and 3. Assets.
Jim will review your credit with you and address any derogatory items. Once the credit has been analyzed and the above has been completed, Jim will write down and go over all the loan products in a formal presentation. Once you have come to a decision on the best loan product, a Pre-Qualification letter is issued and it’s time to go house shopping. Upon finding a home, Jim will finalize the terms of the loan with you and submit your file to our processing department. The Processing Department will Pre-Underwrite your loan and obtain updated documentation and request anything that they feel pertinent, that the underwriter might ask for. The underwriter will review the file for the Conditional Loan Qualification and may request additional documents. If so, the processing department will reach out to obtain those and then turn into the underwriter. Once the underwriter completes her final review, they will FINAL Approve your loan.
Now that the Underwriter has Final Approved the loan, the Loan Documents will be prepared and sent to the Title Company for signing. The Title Company will reach out to you and set a time to sign the documents with a Notary. Jim will go over the numbers with you to confirm your Cash to Close and how much to bring to your signing. After signing, typically within 24 hours your loan will Fund and the Deed will record in your name. This means the house is yours!! The key to making this a Smooth process for you, the buyer, is to keep you thoroughly informed throughout the process. You will updated weekly by your Mortgage Consultant. There a lot of people involved in the process and it is our responsibility to orchestrate the process. From the Realtor, appraiser, home insurance, title company, notary, etc. We take responsibility of keeping you informed and closing on-time and accurately.
We look forward to having the opportunity to serve you with your mortgage financing needs.
Your history of how you have used credit.
Your ability to repay the loan.
Your savings that will be used for Down Payment and Closing Costs associated.
Congratulations on your decision to buy a new home!
There are many important things to consider throughout the process, especially if you’re a first-time homebuyer. Here’s some information that will keep you on track.
A home purchase it the largest investment you will make, so it’s important to make the right decisions and to keep an eye on the details. With the assistance of your Real Estate Agent and Loan Officer, it should be an efficient, pleasant, and ultimately rewarding experience.
It’s never the wrong time to think about a new loan!
Refinancing has a number of benefits that often make it worth the up-front expenditure many times over. When you refinance, you might be able to lower your interest rate and monthly payment — sometimes significantly. You might also be able to “cash out” some of the built-up equity in your home, which you can use to consolidate debt, improve your home, or any other purpose you deem necessary. With lower rates and balances, you might also be able to build up home equity faster with a shorter-term new mortgage.
All these benefits do cost something, though. There are lender fees, title fees and appraisal along with starting a new impound account for property taxes and homeowners insurance. Ultimately, for most people the amount of up-front costs to refinance are made up very quickly in monthly savings. In most cases, the costs of the refinance can be rolled into the new loan, so you have literally no out of pocket expense.
Ultimately, for most people the amount of up-front costs to refinance are made up very quickly in monthly savings. We’ll work with you to determine what program is best for you, considering your cash on hand, how likely you are to sell your home in the near future, and what effect refinancing might have on your taxes.