The Loan Process
Pre-Qualification/Interview: Application interview. Lender obtains all pertinent documentation.
Loan Submission: The loan package is assembled and submitted to the underwriter for approval.
Documentation: Supporting documents come in. Lender checks on any problems. Requests for any additional items are made.
Loan Approval: Parties are notified of approval.
Documents are Drawn: Loan documents are completed & sent to escrow. Borrowers sign final signatures with a Notary Public.
Order Documents: Credit report, appraisal on property, verifications of employment, mortgage or rent, and funds to close, landlord ratings, preliminary title report.
Funding: Lender reviews the loan package Funds are transferred by wire.
Recording of Documents: Title company records the deed of the trust at the County Recorder’s office. Escrow is now officially closed.
YOU ARE A PROUD HOME OWNER!
Shopping For A Lender
A very important part of purchasing a home is finding the right lender. Listed below are questions to ask while shopping for a lender and characteristics you should look for when choosing a lender, as well as, what not to do when shopping for a lender.
Questions To Ask While Shopping For Your Lender
• What is his or her reputation within the community? How many loans do they close each year?
• Is the company well known in the area? How long has the company been in the business?
• Is the lender a mortgage broker? Does the lender have access to a wide variety of loan packages?
• Can the interest rates be locked in and for how long?
What Not To Do When Shopping For A Lender
Do NOT call around asking for interest rate quotes:
• Rates quoted over the phone are rarely locked prices. This is one way the lender gets you to come into his office. Rates can be subject to change unless they are predetermined for a specific period of time.
• Interest rates can change daily. A quote you get today may not be available at the same price tomorrow.
• The interest rate you are quoted over the phone by a lender who knows nothing about you may not be a program that will fit your needs or situation.
• You will have no knowledge of the other programs the lender may have to offer you.
Getting Pre-Qualified
Most Real Estate Agents and Lenders recommend that home buyers get pre-qualified with a lender before selecting a home to purchase. This way you will have the best information about the right price range for your pocketbook.
Reasons To Get Pre-Qualified
• With pre-qualification, you can determine which loan program best fits your need and which programs you qualify for. (List of loan programs to follow)
• You will know exactly how much you are qualified for. It’s no fun to find your “ideal home” and then find out you can’t afford it.
• Your monthly payment will be set. This will allow you to budget your money before making this large investment.
• It shows you what the down payment and closing costs will be.
• If you are a first-time buyer, you may be able to qualify for a special first-time buyer program which may allow you to afford more home for your money.
• If you feel you would like and can afford a higher mortgage payment but are not able to meet qualifications, co-mortgagor financing may be made available to you.
