Loan Process
The first step in purchasing a home is determaning how much money you can borrow. You should start this process before you begin looking for a new home because you'll:
- Look for properties within your budget.
- Be in a better position when negotiating with the seller (seller will know you're fully pre-approved).
- Know which program you qualify for as some homes don't accept every loan program.
- Close your loan quicker.
Below are some of the documents required to complete this step, which is the first step, of purchasing a home:
- Complete application by clicking here
- Last 30 days of paystubs
- Last 2 years W2/1099
- Last 2 years tax returns (if self-employed or own investment proerty)
- Copy of ID
- Last 2 months bank statement (checking, savings, investment, retirement accounts)
- Social Security/Pension/Disablity Awards Letter (if applicable)
Once we've figured out the different options that work best for you, now its time for you to select your loan program.
We'll give our recommendations but ultimately it's up to you which works best. Home loans come in many shapes and sizes, and deciding which loan makes the most sense for your financial situation and goals means understanding the benefits of each.
After going through your mortgage plan together and answering all your questions, you should feel confident in selecting the one loan that matches your present condition as well as your future financial goals.
As you visit different properties and explore your options, feel free to give us a call during this process so we can review how the figures vary in homes you're considering.
Once you've selected a home and gone under contract with a seller, the loan process now begins. We'll work on finalizing your loan application and start the loan approval process immediately.
During this time, we'll typically reach out to request more/updated documentation to help expedite the loan process. Once we've done that, the loan milestones move to the following steps:
- Disclosures: we'll send you all the terms and conditions of the loan, including your Loan Estimate and Credit Card Authorization form so we can order the appraisal. This can be e-signed directly from your phone or computer. Feel free to call us if you have any questions regarding the initial disclosures. Keep in mind that these are just a preliminary estimate, and are not final. As we progress throughout the loan process, you'll have additional disclosures sent that will have updated figures.
- Proccessing: once you've signed, the Processor assigend to your file will begin packaging the loan for Underwriting approval. More documents may be needed during this step, so be on the lookout for any additional info needed. We ask you provide paperwork as quickly as possible (typically within 24-48 hrs) as the loan process is time sensitive.
- Underwriting: once the Underwriter reviews the file, they'll issue a disposition (usually a Conditional Loan Approval). During this time period, we will review the conditions as a team, and come up with a plan on how to address what the Underwriter is requesting so that we can close the loan as quickly as possible. Keep in mind that there may be some additional documents needed from the borrower at this time.
- Clear to Close: congratulations! Your loan process is officially nearing the finish line! Usually there will be cash to closing you'll have to wire to the title company/closing agent, to satisfy the down payment requirements. Please always make sure to call the title company prior to sending any wires. You should call them to their verified phone number, and confirm the wiring instructions, this way the funds make it to the right place.
- Closing: you've made it to the finish line! For the closing, please make sure to bring 1 or 2 forms of ID. As always, feel free to give us a call if you have any questions during the loan or closing process.