1.   Organize Your Documents -

Our loan application form asks for information on the property you are buying or refinancing, as well as the employment and financial history of all loan applicants. We will verify the information shown on the loan application before deciding whether or not to make the loan, so it is very important to make sure that it is complete and accurate.

It is easier to complete the loan application process if you prepare for it ahead of time. We will ask about your personal finances, including bank account numbers and balances, current loan amounts and payments, and credit card account numbers. You need to be thorough and precise in providing this information, so it is best to assemble information before you meet with us. Following is a summary of the major kinds of information required on the loan application, the documents that may be needed, and the questions that you should be prepared to answer.

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.

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2.  Get Qualified -

Getting qualified before you apply for a loan can help you understand how much you can borrow.

When buying a property or refinancing a property, 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 property. This will help you:

Find out the maximum property you can buy, so you don't waste time looking for properties you cannot 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

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3.  Shop For Loan Programs -

Think about how long you plan to keep the loan. If you plan to sell the property in a few years you may want to consider an adjustable or balloon loan. On the other hand, if you plan to keep the property 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.

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4. Apply For A Loan - 5. Get Approved

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 property until 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 The Loan Application...What's Next?
After the loan application has been completed, it will be turned over to our loan processing department and then to the underwriter, where the decision to approve or reject the loan will be made. Loan processors call to confirm the information you provided, or send out the Verifications of Employment and Deposit and order the credit report, property appraisal, and other documents. The time it takes to receive these documents affects the length of time required for approval of the loan. If you are transferring into the local community, it may take longer to receive the credit and employment information.

Within three business days after completing the application, we must provide you with a "Good Faith Estimate" of the anticipated closing costs. It will show costs associated with the loan settlement, such as origination fees, mortgage insurance, title insurance, escrow reserves, and hazard insurance.

Within the same three days we will also send you a Truth-in-Lending Disclosure statement. This statement shows, among other things, the estimated monthly payment. The total cost of all finance charges on your loan is also shown, stated as an annual percentage rate (APR). The APR represents the dollar amount of finance charges you pay either up front or over the life of the loan, converted to an annual interest rate. Since the APR includes origination fees and other charges, as well as interest on the mortgage loan, the APR is usually higher than the interest rate of the loan.

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6. Close The Loan

After your loan has been approved by the underwriter, it is sent to the closing department. Once again, everything is checked for accuracy and the closing package is forwarded to the approved closing agent.

The closing agent in this transaction represents the lender and will conduct the closing on our behalf The closing agent at this point has run the title search and insured that the property is able to be conveyed by the seller without any encumbrances. The closing agent checks the survey and makes sure that the lender has proper coverage. The borrowers may insure their coverage in regard to survey and other title matters by purchasing an owner's title insurance policy issued by the closing agent.

Items typically requested for the borrower to bring to the closing are a one year's hazard insurance policy and paid receipt, a certified (or cashier's check) for the cash needed for closing, and a report from a certified termite inspector which states that the property is free from infestation.

The closing agent will obtain the necessary signatures on the closing documents and disburse the money.

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