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The mortgage process, if handled correctly, can help reduce some of the
stress often felt during the home buying process. However, since there are
several steps to completing the process, Sanders & Associates can help you
learn more about your options, keep the process on track and on time, and
receive the Guaranteed Lowest Price Mortgage.
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If you are buying or refinancing a home
- If you are salaried: provide two years W-2 and one month
of pay stubs 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 a copy of your green
card (front & back), or if you are NOT a permanent resident provide
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 pay stubs 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 a copy of your green
card (front & back), or if you are NOT a permanent resident provide
your H-1 or L-1 visa.
Get qualified
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.
Shopping for a loan
- 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.
Obtain loan approval
Once your loan application has been received the loan
approval process starts 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.
Close the loan
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.
Having our agent work in coDEunction with your lender can take a lot of the
hassle out of applying for a mortgage and also give you more control over the
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