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
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
Think about how long you
plan to keep the loan. If you plan to sell the house in a few years
you may want to consider an adjustable or balloon loan. On the other hand,
if you plan to keep the house for a longer time, you may want to look at
Understand the relationship
between rates and points. Points are considered to be prepaid interest
and are tax deductible. Each point is equal to one percent of the loan.
So for example 1 point on a $150,000 loan is $1,500. The more points you
pay, the lower the rate you will get.
Compare different programs.
Shopping for a loan can be difficult. With so many programs to choose from,
each of which has different rates, points and fees, it's hard to figure
out which program is best for you. That's where an experienced loan officer
can help you make a decision that's best for you.
Once your loan application has been received we will start the loan approval
process immediately. This involves verifying your:
Assets including your bank accounts, stocks, mutual
fund and retirement accounts
Based on your specific situation,
additional documents or verifications may be required. To improve your chances
of getting a loan approval:
Fill out the loan application completely.
Respond promptly to any requests for additional documents.
This is especially critical if your rate is locked or if you plan to close
by a certain date.
Do not make any major purchases. Do not buy a car,
furniture or another house till your loan is closed. 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 receiving money from friends, family or other
relatives, please contact us.
Do not go out of town around the closing date. If
you do plan to be out of town when your loan is expected to close, you may
sign a power of attorney, to authorize another individual to sign on your
After 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.