Purchasing and Refinancing your home:
- Step 1: Organize your documents
- Step 2: Fill out an application and get qualified
- Step 3: Determine what loan product and rate best fits your needs
- Step 4: Apply for a loan
- Step 5: Obtain loan approval
- Step 6: Close your loan
Step 1: Organize your documents: A properly documented loan application makes your loan process go smoothly. This checklist will help you gather your paperwork – being prepared is a vital step whenever dealing with your future financial situation.
If you are salaried:
- Two recent pay stubs covering a 30 day period
- Two years of your most recent W-2's
- Two years of your 1040's (all schedules)
- Two recent bank statements for any checking, savings, stock, mutual funds and IRA/401K accounts.
If you are self employed:
Sole Proprietor (schedule C income on your personal 1040's)
- Two years of your most recent 1040s – all schedules
- Two recent bank statements for any checking, savings, stock, mutual funds and IRA/401K accounts.
Corporation or Partnership
- Two recent pay stubs
- Two most recent years of your 1120's – all schedules (if Corporation)
- Two most recent years of your 1065's – all schedules (If Partnership)
- Current year to date P&L and balance sheet
- Two most recent years of your W-2's
- Two most recent years of your 1040's – all schedules
- Two recent bank statements for any checking, savings, stock, mutual funds and IRA/401K accounts.
Other sources of income – Requires all of the above, PLUS:
- Copy of the current rental or lease agreement.
If you receive Alimony or Child Support:
- Copy of divorce decree and settlement agreement
- If not filed on last tax return – need 12 months bank statements or cancelled checks proving receipt of these funds.
- Important Note on Alimony and Child Support – Lenders require proof you have received for 1 full year and it must continue for a minimum of 3 years at the time loan closing to use this income to qualify.
Additional Documentation for refinancing:
- Copy of your current mortgage statement
- Copy of your current home owners insurance.
Step 2: Fill out an application and get qualified: Complete an application, either over the phone or fill out application provided from your mortgage loan officer. Make sure all information is complete and accurate.
Once your loan application has been received, we will start the loan approval process immediately. We will evaluate the following to determine what type of loan best suits your needs:
- Credit History
- Employment History
- Assets including your banks accounts, stocks, mutual fund and retirement accounts
- Based on your specific situation, additional documents may be required.
To improve your chances of getting a loan approval:
- Make sure you fill out the loan application completely as all information will be verified.
- If any additional documents required, respond promptly as this is critical if your rate is locked or you plan to close by a certain date.
- DO NOT MAKE ANY MAJOR PURCHASES. Do not buy a car, furniture or another house until your loan is closed as anything that causes your debts to increase might have an adverse affect on your current application.
- DO NOT move or deposit money into your bank accounts unless the source can be documented, if you are receiving any funds from friends, family or other relatives, please advise us upfront.
Step 3: Determine what loan product and rate best fits your needs: Based on what you qualify it's time to decided which product best suits you – See Loan Programs.
Step 4: Apply for a loan: Based on your qualifications we will obtain a DU or LP approval and you can now start looking for a home if you are purchasing a new home, the loan does not actually get submitted to a lender until you have found a particular property – Once a property has been selected, offer put in and accepted your loan will be submitted for final loan approval. If you are doing a refinance the loan would be submitted immediately.
Step 5: Obtain loan approval: Once the loan has been issued a final approval we will order the appraisal.
Step 6: Close the loan: After your loan is approved, appraisal approved and all documentation signed off by the lender, you will be required to sign the final loan documents. You will sign your loan documents in the presence of a notary public, this will either take place at Escrow or a mobile notary sent to you for your convenience. Be prepared to:
- Bring a cashiers check or ready to wire funds for your down payment and closing costs if required. Personal checks are NOT accepted only certified funds.
- Review the final loan documents to ensure that the interest rate and loan terms are what you were promised.
- Verify the accuracy of the name and address on the loan documents.
- Sign your loan documents - the notary will require that you have a picture ID with you.
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 a 3-day right of rescission before your transaction can close. Purchase transactions do not have the three day rescission period requirement.