The first step in obtaining a loan is to determine how much money you can borrow. In case of buying a home, you should determine how much home you can afford even before you begin looking. By answering a few simple questions, we will calculate your buying power, based on standard lender guidelines.
You may also elect to get pre-qualified for a loan which requires verification of your income, credit, assets and liabilities.
Home loans come in many shapes and sizes. Deciding which loan makes the most sense for your financial situation and goals means understanding the benefits of each. Whether you are buying a home or refinancing, there are two basic types of home loans. Each has different reasons you’d choose them.
1) Fixed Rate Mortgage. Throughout your chosen term, the interest rate and monthly payments remain the same.
2) Adjustable Rate Mortgage (often called ARMs). During your chosen term, the interest rate on the loan may go up or down. Any rate adjustment will cause your monthly payment to either increase or decrease.
Step 3: Apply for YOUR Loan
You may apply online, in person or on the phone. We always work with your schedule.
Get started with someone from our team.
Although lenders conform to standards set by government agencies, loan approval guidelines vary depending on the terms of each loan. In general, approval is based on two factors: your ability and willingness to repay the loan and the value of the property. Once your loan application has been received we will start the loan approval process immediately.
This information includes:
Income/Employment Check: Is your income sufficient to cover monthly payments? Industry guidelines are used to evaluate your income and employment history.
Credit Check: What is your ability to repay debts when due? Your credit report is reviewed to determine the type and terms of previous loans.
Asset Evaluation: Do you have the funds necessary to make the down payment and pay closing costs?
Property Appraisal: Is there sufficient value in the property? The property is appraised to determine market value.
Other Documentation: In some cases, additional documentation might be required before making a final determination regarding your loan approval.
In order to improve your chances of getting a loan approval:
- Fill out your loan application completely. You may use our online forms to expedite the process.
- Respond promptly to any requests for additional documentation especially if your rate is locked or if your loan is to close by a certain date.
- Do not move money into or from your bank accounts without a paper trail.
- Do not make any major purchases or be extended credit until your loan is closed. Purchases cause your debts to increase and might have an adverse affect on your current application.
- Do not go out of town around your loan’s closing date.
- Do not changes jobs.
After your loan is approved, you are ready to sign the final loan documents. The signing normally takes place at the closing attorney’s office.
Bring a cashier’s check for the down payment and closing costs, if required. Personal checks are normally not accepted.
On owner occupied refinance loan transactions federal law requires that you have 3 days to review the documents before your loan transaction can fund.