Not sure how much home you qualify for?
We can help you determine approximately how much money you will be eligible to borrow before you apply for the loan. Pre-qualifications are a calculation based on the information provided by you. A pre-qualification is not a pre-approval. Once you are pre-qualified and know how much you can afford, then the following 6 steps will help you be prepared when you find your dream home.
1. Select the best loan program 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. Consult an experienced loan officer who can help you find a loan program that best fits your short- and long-term plans.
2. Provide a completed loan application
You can apply online, over the phone, by mail, or if feasible, meet in person. The application will provide information necessary to process your home loan financing request including, personal, property, employment, income, asset and liability information. Once the application has been completed I will prepare and send you the appropriate disclosures and submit your loan for underwriting approval.
3. Float or lock in a rate
Mortgage rates are tied to movements in the financial markets. Since the financial markets are subject to volatile movement on a daily basis (even throughout the day), there are no guarantees what mortgage rates will be at any given time. At the time of application you must choose to either ‘Float’ or ‘Lock-In’ an interest rate. A floating interest rate may be locked-in at the current prevailing rate at any point during the loan process by contacting me directly.
4. Loan paperwork review and preparation
Our support staff will work with you to collect all the necessary documentation required by the underwriter to close your loan. Once underwriting reviews and accepts the documentation you are ready to close on your loan.
5. Credit analysis
When shopping for a new home, underwriting may take place before or after finding the property you wish to purchase. A conditional approval will be issued identifying the conditions required by underwriting before a “Final Approval Clear to Close” is issued. Once any conditions have been satisfied the loan will receive final approval and the clear to close.
6. Closing and funding your loan
We will work with you to coordinate a date and time convenient to you, the settlement agent (title company or attorney), and sellers, if applicable to close on your home loan. All loans must close and fund prior to the interest rate lock-in expiration date.
There is a lot to know when applying for a mortgage and we are here to help you along the way. We work as a team to help get your loan closed. We will spend the all the time you need to be sure you understand the commitment you are making. We strive to be your lender for life and if we don’t do our best we know there is plenty of competition for your business. Contact us today!
