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A
properly documented loan application makes your loan
process go smoothly. This checklist will help you gather
your paperwork.
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Complete
and sign the residential loan application. If you make a
mistake while filling out the application cross it out,
and make a change. Do NOT use whiteout.
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Please
consult one of our qualified, and professional loan
officers to determine which documents are required, if
any, as proof of income.
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If you
own rental property, provide recent rental agreements
and tax returns for the previous two years, including
all schedules.
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Provide
bank statements for the recent two months, and recent
statements for stock, mutual funds and IRA/401K
accounts.
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If you
are NOT a US citizen, provide a copy of your green card
(front & back).If you are NOT a permanent resident
provide a copy of your H-1 or L-1 visa. ]
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If any
borrower has filed bankruptcy, a copy of the Discharge
Notice, Filing and Schedule of Creditors may be
required.
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If you
are requesting a cash out refinance, provide a letter
explaining how you will use the refinance proceeds.
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Get
Qualified
Getting
qualified before you apply for a loan can help you
understand how much you can borrow.
When buying
a home, you may get pre-qualified over the phone or on the
Internet in a few minutes. Pre-qualification is not as
useful as pre-approval. Pre-approval requires a more
rigorous process, including verification of your credit,
income, assets and liabilities. It is highly recommended
that you be pre-approved before you start looking for a
home.
Being
pre-approved will:
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Inform you of your maximum
affordable home value, and save you from previewing
properties outside your price range.
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Put you in a stronger
negotiating position with the seller, because the seller
will know your loan is pre-approved.
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Help you close quickly,
since your loan is pre-approved.
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Shop Loan Programs
and Rates
What
loan program is best for your situation? Lenders offer
many different loan options:
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Think
about how long you plan to keep the loan. If you plan to
sell your home in a few years, you may want to consider
an adjustable rate or balloon loan. If you plan to keep
your home for a longer time, you may want to consider a
fixed rate loan.
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Understand the relationship between rates and points.
Points are considered prepaid interest and may be tax
deductible. Each point is equal to 1 percent of the
loan. For example 1 point on a $200,000 loan is $2,000.
The more points you pay, the lower your rate.
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Compare
different loan programs. With so many programs to choose
from, it's hard to figure out which program is best for
you. Consult our experienced loan officers who can help
you find a loan program that best fits your short- and
long-term plans.
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Obtain Loan Approval
Once your
loan application has been received, we will start the loan
approval process immediately. This involves verifying
your:
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Credit history
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Employment history
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Assets including your bank accounts,
stocks, mutual fund and retirement accounts
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Property value
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Based on your specific situation,
additional documents or verifications may be required.
To improve
your chances of getting a loan approval:
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Fill out the loan application completely.
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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.
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Do not make any major purchases. Do not
buy a car, furniture or another house till your loan is
closed.
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Anything that causes your debts to
increase might have an adverse affect on your current
application.
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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.
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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.
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Notify your loan officer before applying
for any other credit, including credit cards, personal
loans or even with another mortgage company. Some loan
programs have strict guidelines regarding your credit
score. Credit inquiries may lower your credit score and
may have an adverse affect on your loan approval.
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After your
loan is approved, you will be required to sign the final
loan documents. This will normally take place in the
presence of a notary public. Be prepared to:
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Bring a cashiers check for your down
payment and closing costs if required. Personal checks
are normally NOT accepted.
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Review the final loan documents. Make
sure that the interest rate and loan terms are what you
were promised. Also, verify the accuracy of the name and
address on the loan documents.
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Sign the loan documents. The notary will
require that you have your picture ID with you. Some
lenders also require to see your Social Security card.
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 three days to review
the documents before your loan transaction can close.
Purchase transactions do not have a three day rescission
period.
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