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Loan Process

Step

1

Find Out How Much You Can Borrow

The first step in obtaining a loan is to determine how much money you can borrow. Before committing to buying a home, you should determine how much home you can afford well before you begin looking.
You may also elect to get pre-qualified for a loan which requires verification of your income, credit, assets, and liabilities. It is recommended that you get pre-qualified so you can:
1. Filter out homes above your price range when you do begin your search.
2. Be in a better position when negotiating with the seller.
3. Close your loan quicker—the mortgage broker who pre-qualified you already has your information and a good idea of your borrowing qualifications.
Get Pre-Qualified

Step

2

Select The Right Loan Program

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.
View Loan Programs

Step

3

Apply For A Loan

Next, is to complete the loan application process. To ensure you have the documentation ready for this step, review our Application Checklist. Then, follow the link below to complete an online home loan application, or contact our office to discuss your loan options with one of our loan originators before applying.
Apply Now

Step

4

Begin Loan Processing

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 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. Your loan processor will verify the information you have given. If any discrepancies are found, either the processor or your loan officer will contact you to resolve the issue. Information collected for the mortgage loan application includes:
Income / Employment Check
Is your income sufficient to cover monthly payments? Industry guidelines are used to evaluate your income and your debts.
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. Any lapses or delays in payment are considered and must be explained.
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. Location and zoning play a part in the evaluation.
Other Documentation
In some cases, additional documentation might be required before making a final determination regarding your loan approval.
To improve your chances of getting a loan approval:
1. Fill out your loan application completely.
2. Respond promptly to any requests for additional documentation, especially if your rate is locked or if your loan is set to close by a certain date.
3. Do not move money into or from your bank accounts without a paper trail. If you are receiving money from friends, family, or other relatives, please prepare a gift letter and contact us.
4. Do not make any major purchases until your loan is closed. Purchases cause your debts to increase and might have an adverse effect on your current application.
5. Do not go out of town around your loan's closing date. If you plan to be out of town, you may want to sign a Power of Attorney to someone to complete the loan signing for you.

Step

5

Close Your Loan

After your loan is approved, you are ready to sign the final loan documents. You must review the documents prior to signing and make sure the interest rate and loan terms are what you were promised. Also, verify the name and address on the loan documents are accurate. The signing normally takes place in front of a notary public.

There are also several fees associated with obtaining a mortgage and transferring property ownership which you will be expected to pay at closing. Bring a cashier’s check for the down payment and closing costs if required. Personal checks are normally not accepted. You will also need to show your homeowner's insurance policy and any other requirements such as flood insurance and proof of premium payment.

Your loan will normally close shortly after you have signed the loan documents. On owner-occupied refinance loan transactions federal law requires that you have 3 days to review the documents before your loan transaction can close.
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