Loan Process

Step 1: Find Out How Much You Can Borrow

The first step in obtaining a loan is to determine how much money you can borrow.  In case of buying a property, you should determine how much qualify for even before you begin looking. By answering a few simple questions, we will calculate your buying power, based on standard lender guidelines.

Click here to Pre-Qualify.

You may also elect to get pre-approved for a loan which requires verification of your income, credit, assets and liabilities.  It is recommended that you get pre-approved before you start looking so you: 

  1. Look for properties within your range.
  2. Be in a better position when negotiating with the seller (seller knows your loan is already approved).
  3. Close your loan quicker

LTV and Debt-to-Income Ratios

LTV or Loan-To-Value ratio is the maximum amount of exposure that a lender is willing to accept in financing your purchase. Another consideration in approving the maximum amount of loan for a particular borrower is the ratio of monthly debt payments (such as credit cards and loans) to income.

FICO™ Credit Score

FICO™ Credit Scores are widely used by almost all types of lenders in their credit decision. It is a quantified measure of creditworthiness of an individual, which is derived from mathematical models developed by Fair Isaac and Company in San Rafael, California. FICO™ scores reflect credit risk of the individual in comparison with that of general population. It is based on a number of factors including past payment history, total amount of borrowing, length of credit history, search for new credit, and type of credit established. When you begin shopping around for a new credit card or a loan, every time a lender runs your credit report it adversely effects your credit score. It is, therefore, advisable that you authorize the lender/broker to run your credit report only after you have chosen to apply for a loan through them.


Down Payment

Lenders expect borrowers to come up with sufficient cash for the down payment and other fees payable by the borrower at the time of funding the loan.

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Step 2: Select The Right Loan Program

Loans come in many shapes and sizes. Deciding which loan makes the most sense for your financial situation and goals means understanding the benefits of each.  Whether you are buying or refinancing, there are 2 basic types of home loans. Each has different reasons you'd choose them.

1) Fixed Rate Mortgage

Fixed rate mortgages usually have terms lasting 15 or 30 years. Throughout those years, the interest rate and monthly payments remain the same. 

2) Adjustable Rate Mortgage

Adjustable Rate Mortgages (often called ARMs) typically last for 15 or 30 years, just like fixed rate mortgages. But during those years, the interest rate on the loan may go up or down. Monthly payments increase or decrease. 

By carefully considering the above factors and seeking our professional advice, you should be able to select the one loan that matches your present condition as well as your future financial goals.

Step 3: Apply For A Loan

Step 4: Begin Loan Processing

Once your loan application has been received we will start the loan approval process immediately. Your loan processor will verify all of the information you have given. If any discrepancies are found, either the processor or your loan officer will troubleshoot to straighten them out.  This information includes:

Income/Employment Check
Is your income sufficient to cover monthly payments?  Industry guidelines are used to evaluate your income and your debts.
 
Credit Check
What is your ability to repay debts when due?  Your credit report is reviewed to determine the type and terms of previous loans.
 
Asset Evaluation
Do you have the funds necessary to make the down payment and pay closing costs? 
 
Property Appraisal
Is there sufficient value in the property? The property is appraised to determine market value.
 
Other Documentation

In some cases, additional documentation might be required before making a final determination regarding your loan approval.

In order to improve your chances of getting a loan approval:

  1. Fill out your loan application completely. You may use our online forms to expedite the process.
  2. Respond promptly to any requests for additional documentation especially if your rate is locked or if your loan is to close by a certain date.
  3. Do not move money into or from your bank accounts without a paper trail. If you are receiving money from friends, family or other relatives, please prepare a gift letter and contact us.
  4. Do not make any major purchases until your loan is closed.  Purchases cause your debts to increase and might have an adverse affect on your current application.
  5. Do not go out of town around your loan's closing date. If you plan to be out of town, you may want to sign a Power of Attorney.

Step 5: Close Your Loan

After your loan is approved, you are ready close.