Organize your Documents

We will need you to provide us with W-2s if your salaried and if your Self-employed you must    provide the past two-years of W-2s and one month of most current pay-stubs: 2nd option, if you are self-employed you can provide the past two-years tax returns and  include a year-to-date profit and

loss statement. Keep in mind that if you are on rental property you will need to provide Rental Agreements and the past two-years tax returns. Additional information will help t the approval process, stock and mutual fund account , three-months bank statements, . Provide the most recent copies of any stock brokerage or IRA/401k accounts that you might have.

You can also get cash-out.  which all depends on the equity of the house.  The higher the equity the more cash in you hand.

The Application

The loan process starts with the application.  It takes about one to seven days to start process. The Borrower completes the application with assistance from the agent via Telephone, mail or face to face conversation and must provided the required documents.

The estimated fees and closing cost varies and will be determined based on different Mortgage Program and the Good Faith Estimate gives the breakdown of the final cost and a Truth-In-Lending Statement which the borrower will receive within three days of the submission of the application to the lender.

2nd: Pre-Qualification

Getting qualified before you apply for a loan can help you understand how much you can borrow. When buying a house, 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 house. This will help you: Find out the maximum house you can buy, so you don't waste time looking for properties you can not 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.

STEP 3: Shop Loan Programs and Rates

To properly analyze a Mortgage Program, the borrower needs to think about how long they plan to keep the loan. If you plans to sell the house in a few years, an adjustable or balloon loan may make more sense. If you plans to keep the house for a longer period, a fix loan may be more suitable.

A borrower should also understand the relationship between rates and points. Points are considered to be prepaid interest and may be tax deducible (consult your tax advisor). Each point is equal to one percent of the loan. The more points you are willing to pay, the lower the interest rate will be.

Shopping for a loan is very time consuming and frustrating. With so many programs to choose from, each with different rates, points and fees, an experience mortgage professional can evaluate a borrower's situation and recommend the most suitable Mortgage Program. Thus allowing the borrower to make an informed decision.

Since professional mortgage brokers only broker Mortgage Program that are priced below retail, the borrower is getting an experienced mortgage professional at no extra cost. In fact, because of the mortgage professional's extensive knowledge of the mortgage industry, he or she many times can save the borrower extra money.

Step 4: Loan Submission Processing

Once the application has been submitted, the processing of the mortgage begins. The Processor opens Escrow and orders the Credit Report, Appraisal and Title Report. The information on the application, such as bank deposits and payment histories is then verified. Any credit derogatoriness, such as late payments, collections and/or judgments require a written explanation. The processor examines the Appraisal and Title Report checking for property issues that may require further investigation. The entire mortgage package is then put together for submission to the lender.

STEP 5: Obtain Loan Approval

Once the processor has put together a complete package with all verifications and documentation, the file is sent email and overnight mail to the lender. The underwriter is responsible for determining whether the package is deemed an acceptable loan. If more information is needed the loan is put into "suspense" and the borrower is contacted to supply more information and/or documentation. If the loan is acceptable as submitted, the loan is put into an "approved" status.

  STEP 6: Close the Loan

As soon as 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.

Appraisal Basics

An appraisal of real estate is the valuation of the rights of ownership. The appraiser must define the rights to be appraised. The appraiser does not create value, the appraiser interprets the market to arrive at a value estimate. As the appraiser compiles data pertinent to a report, consideration must be given to the site and amenities as well as the physical condition of the property. Considerable research and collection of data must be completed prior to the appraiser arriving at a final opinion of value.