Your Home Loan Process
The process of applying for and qualifying for a loan is much easier than you might think. I start by asking some questions and listening... then working as your partner to find the absolute best loan for you. The process looks something like this:
- Let's talk: Are you wanting to purchase or refinance? Is this your own home, a second home, or an investment? What is your income and debt, and what kind of payments do you qualify for? What total loan amount are you needing?
- I will fill out the application for you, either in person or via phone. This is very easy and takes only about 30 minutes.
- I will run your credit report, let you know what your FICO scores are, and make sure the creditors listed are current and accurate. Your list of creditors will automatically be added to your loan application. Banks and mortgage companies look at the middle FICO score (not the average score, just the middle score). A mid-FICO of 680 or above is OK, depending on the lender. Many lenders now want the mid-FICO to be above 720.
- Most lenders want to see no more than 45% of your gross income (before taxes) going to debt - including all credit cards, mortgages, property tax, car payments, etc.
- I get copies of and verify additional information (like W-2s, tax returns, bank statements, and the like).
- I will get your signatures on your application and some disclosures. If you are out of town, I will email or "overnight" the application and disclosure packet to you for signatures.
- I will write a pre-qualification letter for you if you are shopping for a home. If we need to, I will submit your loan application for pre-approval with a specific lender.
- I will then research the best loan for you based on your needs, your credit score, your employment status, and the like, and let you know what your options are, including interest rates, monthly payments, and closing costs.
- We will discuss interest rates, and the cost of the loan ("points"). In today's market, most clients want to pay 1 point (1% of the loan amount) to lock in a lower rate. But, we also offer "no point" loans.
- After we find the right loan for your needs, we will submit your paperwork to determine what else the lender needs to close the loan (called “conditions”). We will have the property appraised to determine value, we will order title reports, and we will supply the lender with requested information.
- The loan process can take at least a month, sometimes more. I am a believer in communication, so I keep you apprised of the process as it proceeds, and when I can, I will be at the Title Company to support you during the loan closing process.
I am here to support you every step of the way, and make sure you get the loan you want!