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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 the case of buying a home, you should determine how much you can afford even before you begin looking. By answering a few simple questions, we will calculate your buying power based on standard lender guidelines.

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 for your new house so you can:

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 More Quickly

More on Pre-Qualification

• LTV and Debt-to-Income Ratios
• FICO Credit Score
• Self-Employed Borrower
• Source of Down Payment

Step 2: Select the Right Loan Program

Home 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 a home or refinancing, there are 3 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. You would select this type of loan when you:

• Plan to Live in a Home for More Than 7 Years
• Like the Stability of a Fixed Principal / Interest Payment
• Don't Want to Run the Risk of Future Monthly Payment Increases
• Think Your Income and Spending Will Stay 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. You would select this type of loan when you:

• Plan to Stay in Your Home for Fewer Than 5 Years
• Don't Mind Having Your Monthly Payment Periodically Change (Up or Down)
• Comfortable with the Risk of Possible Payment Increases in the Future
• Think Your Income Will Probably Increase in the Future

3) Combination Rate Mortgage

Combination rate mortgages combine fixed interest rates and adjustable interest rates. Lenders often refer to these loans as hybrid loans. For the first few years (3-7), the interest rate is fixed. It remains the same and so does your monthly payment. During the remaining years of the loan, your interest rate becomes adjustable and can vary. You would select this type of loan when you:

• Want the Stability of a Fixed Principal / Interest Payment in the Short Term
• Want to Repair Your Credit by Demonstrating Your Ability to Make Regular Payments, Then Refinance for a Lower Interest Rate
• Have a Lot of Consumer Debt (These Loans Typically Allow More)
• Want to Borrow More & Get a Lower Monthly Payment Than a Standard Fixed Rate Loan

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

• Complete the Secure Application: This Takes About 10 Minutes to Complete & Is Required for "Pre-Approval" (Recommended)
• Short Application: This Takes 2-5 Minutes to Complete, and You Will Be Contacted Once Your Application Is Submitted

Step 4: Begin Loan Processing

Although lenders conform to standards set by government agencies, loan approval guidelines vary depending on the terms of each loan. In general, approval is based on two factors: your ability and willingness to repay the loan and the value of the property.

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 
• Credit Check 
• Asset Evaluation 
• Property Appraisal 
• Other Documentation

Step 5: Close Your Loan

Evaluate your different financing options by using our interactive mortgage calculator below!