|
|
If you are buying or
refinancing a home
- 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.
- If you own rental property, please provide
rental agreements and two years tax returns.
- If you wish to speed up the approval
process, please also provide three months bank statements for each bank,
stock and mutual fund account.
- Provide recent copies of any stock
brokerage or IRA/401K accounts that you may have.
- If you are requesting a cash out refinance
please provide a letter explaining what you plan to do with the proceeds.
- Provide a copy of divorce decree if
applicable.
- 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.
If you are applying for a
home equity loan
- 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.
- If you own rental property, please provide
rental agreements and two years tax returns.
- Please provide a copy of the note on your
first mortgage. This will normally be found in your closing loan documents.
- Please provide a signed letter explaining
what you plan to do with the proceeds.
- Provide a copy of divorce decree if
applicable.
- 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.
Getting qualified before you
apply for a loan can help you understand how much you can borrow.
When buying a house, you may get
pre-qualified or pre-approved. You can typically get pre-qualified 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 get pre-approved before you
start looking for a house. This will help you:
- Find out the maximum house you can buy, so
you don't waste time looking for properties you can not afford.
- Puts you in a stronger position when you
are negotiating with the seller, because the seller knows that your loan is
already approved.
- Helps you close quickly, since your loan
is already approved.
To shop for a loan you will
need to:
- 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.
- 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.
- 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 an experienced loan officer can
help you make a decision that's best for you.
Once your loan application
has been received we will start the loan approval process immediately. This
involves verifying your:
- Credit history
- Employment history
- Assets including your bank accounts,
stocks, mutual fund and retirement accounts
- Property value
Based on your specific
situation, additional documents or verifications may be required. To improve
your chances of getting a loan approval:
- Fill out the loan application completely.
- 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.
- Do not make any major purchases. Do not
buy a car, furniture or another house till your loan is closed. Anything
that causes your debts to increase might have an adverse affect on your
current application.
- 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.
- 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.
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:
- Bring a cashiers check for your down
payment and closing costs if required. Personal checks are normally not
accepted.
- Review the final loan documents. Make sure
that the interest rate and loan terms are what you were promised. Also,
verify that the name and address on the loan documents are accurate.
- Sign the loan documents.
Your loan will normally close shortly after
you have signed the loan documents. On refinance and home equity loan
transactions federal law requires that you have 3 days to review the documents
before your loan transaction can close.
|
|
|
