An Overview of the loan Process, It’s as EASY as 1,2,3!
The following is information that you might need to get started;
- Copy of Purchase Sales contract or Offer to Purchase and all addenda (signed by buyer and seller)
- Past 2 years' tax returns and W-2s
- Past 2 years' employment history
- Last 3 consecutive paycheck stubs (5 if paid weekly)
- Name, address and phone for past 2 years' residence(s) and landlord(s). Renters should bring evidence of 12 months' rent payments.
- Last 3 months' statements for savings, checking, CD, money market accounts, etc.
- Recent statement on retirement accounts (IRA, 401K, 403-B, Annuity, etc.)
- Monthly payments and balances on all open accounts
- Divorce decree (if applicable)
- Bankruptcy schedules/Discharge papers (if applicable)
- 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
Contact one of our IMG Professional Mortgage Loan Officers.
What loan program is best for your situation?
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.
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 $150,000 loan is $1,500. The more points you pay, the lower your rate.
Compare different loan programs. With so many programs to choose from, it is hard to figure out which program is best for you. That is why consulting with one of our IMG Loan Officers is so important, as they will guide you and help you find a loan program that fits your short and long term plans.
Being pre-qualified will:
- Inform you of your maximum affordable home value, and save you from previewing properties outside your price range.
- You will be recognized as a very serious buyer
- Help you close quickly, since your loan is already Pre-Qualified.
Organize your Documents and Loan Application
All the research and preparation you have done to this point makes this step easy.
You can apply right now on our Start The Loan Process link, or if you rather you may apply in person. You will complete the Form 1003 and the attached loan information sheet, credit authorization and Fair Lending notice. Your Loan Officer may also request additional documents, such as pay stubs, W2, bank statements, this is the information that you have already organized, so now keep it handy and if you are asked, it will be easy to submit.
Once your loan application has been received, the loan approval process starts immediately. This involves verifying your;
- Credit History
- Employment History, be sure not to leave gaps in the dates, if there are you may be asked for a Letter of Explanation, an LOE will explain the situation.
- Help you close quickly, since your loan is already Pre-Approved.
- Assets including your bank accounts, stocks, mutual fund and retirement accounts
- Property value, which will be obtained by ordering an appraisal.
To improve your chances of getting a loan approval, be sure to,
- Fill out the loan application completely
- Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or you plan to close by a certain date.
- 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 or will be receiving money from friends or relatives, please contact your Loan Officer.
- Do not go out of town around the closing date. If you have to be out of town when your loan is expected to close, you may sign a power of attorney, please keep your Loan Officer advised if this should happen.
Notify your loan officer before applying for any other credit, including credit cards, personal loans. Some loan programs have very strict guidelines regarding your credit score. Credit inquires may lower your credit score and may have an adverse affect on your loan approval. It may also affect your interest rate and or loan program. So be very careful about applying for any loans.
Obtain Loan Approval and Close your loan
Your Loan Officer will call you once your Loan has been approved. There may or may not be a few conditions. This might include, a recent paystub, or copy of divorce decree, it could be a number of different things. This means that you are approved subject to getting any condition cleared.
Once you have an Approval and are clear to close, you will be required to sign the final loan documents. This will normally take place in the presence of a notary public. Your Loan Officer will prepare you as what to expect at closing and may include,
- Bring a cashiers check for your down payment and closing costs . Personal checks are normally NOT accepted
- Review final loan documents. Make sure the interest rate and loan terms are correct.
- Verify the accuracy of names and address on the loan documents
- Sign the loan documents. The notary will require that you have your picture ID with you. Also be prepared should they ask for your Social Security card.
Please note: Your loan will normally fund shortly after you have signed the loan documents if it is a purchase transaction. However, if it is a refinance or Home Equity loan transaction, federal law require that you have three days to review the documents. The refinance loan will fund at the end of the three day rescission period.