The Loan Process
Organize your
documents
1. 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.
2. If you own rental property, please provide rental agreements and two years
tax returns.
3. If you wish to speed up the approval process, please also provide three
months bank statements for each bank, stock and mutual fund account.
4. Provide recent copies of any stock brokerage or IRA/401K accounts that you
may have.
5. If you are requesting a cash-out refinance please provide a letter explaining
what you plan to do with the proceeds.
6. Provide a copy of divorce decree if applicable.
Get Qualified
Getting qualified before you apply for a loan can help you understand how much
you can borrow. It is highly recommended that you get pre-approved before you
start looking for a house. This will help you:
1. Find out the maximum house you can buy, so you don't waste time looking for
properties you cannot afford.
2. Puts you in a stronger position when you are negotiating with the seller,
because the seller knows that your loan is already approved.
3. Helps you close quickly, since your loan is already approved.
Obtain Loan Approval
Once your loan application has been received we will start the loan approval
process immediately. This involves verifying your:
1. Credit history
2. Employment history
3. Assets including your bank accounts, stocks, mutual fund and retirement
accounts
4. 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 house
till 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.
Close the Loan
After your loan is approved, you will be required to sign the final loan
documents. This will normally take place in front of a notary public. Be
prepared to:
Bring a cashiers check for your down payment and closing costs if required.
Personal checks are normally not accepted.
Review the final loan documents. Make sure that the interest rate and loan
terms are what you were promised. Also, verify that the name and address on the
loan documents are accurate.
Sign the loan documents.
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 3 days to review the documents before your loan transaction can close.
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