How to get a loan
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.
Home Financing Do’ and Don’ts
- Inform E5 Home Loans of any changes to your personal information.
- Save Money
- Save all pay stubs, bank statements, W2’s, ect.
- Keep current employment.
- Read all correspondence from E5 Home Loans
- Make sure all savings money is from and acceptable source (checking, saving, 401K).
- Keep documentation of any large or significant deposits into your bank accounts.
- Notify us immediately if you salary changes.
- Continue to make all payments on time for credit cards, loans, and rental/mortgage, as agreed.
- Provide your homeowner’s insurance agent name and phone at least 10 days before closing.
- Ask questions and be informed.
- Don’t quit or change your job.
- Don’t make any major purchases (furniture, appliances, car, ect.).
- Don’t apply for new credit, “same as cash” procedures, ect.
- Don’t make any late payments on your existing accounts or mortgage.
- Don’t transfer balances between accounts.
- Don’t start major home improvement projects.
- Don’t make a large deposit into your savings/checking account.
- Don’t max out or over-charge your credit cards.
- Don’t write any insufficient funds checks (NSF).
- Don’t co-sign for another person for a loan or line of credit.
- Don’t dispute any credit trade lines or collections reporting on your credit report.
- Don’t pay off any collections or loans without consulting us first.
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.
- Present the homes that suit your needs as you’ve defined them.
- With a Pre-Qualification letter from us in hand, your Real Estate Agent will be able to demonstrate that you are a qualified and capable borrower. This will strongly influence the Seller, and may make the difference between the Seller accepting your offer or someone else’s — even if your offer is lower!
Count On Your Loan Officer To:
- Assist you in selecting the best loan to meet your personal situation and goals. (This single decision can save you thousands of dollars throughout the years!)
- Keep you informed of your loan status throughout the entire process.
- With your permission, keep your real estate agent informed of our loan progress
Count On Yourself To:
- Keep your Real Estate Agent informed of any questions or concerns as they develop.
- Keep the process moving by providing documentation and decisions as soon as reasonably possible. By doing so, many of the details are taken care of early in the process so you can comfortably concentrate on any last-minute details or events that require your attention.
- Enjoy purchasing your home, but do remain objective throughout — to make the business decisions that are best for you.
- Make sure you are pre-qualified as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home
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.