The Loan Process
- First start out by Selecting a Loan Originator, Get Pre-Qualified, and Get Your Financial Paperwork Together.
- Once you’ve picked your house and have a contract, your loan originator will help you choose which loan type is best for you. From there, they will give you loan documents to review and sign, stating the terms of your loan and other necessary information. After this is complete, you will likely start to hear from your loan processor (the person behind the scenes putting your loan together) more so than your loan originator.
- Now that you have a contract and things are progressing, your next step is to purchase a homeowners insurance policy through your insurance agent. They will need some information, like the property address, from you, then they will need some information from us.
- Next, an appraisal and a title search are ordered. An appraiser will visit the property you are purchasing to make sure that the home is worth what you are paying for it. In the meantime, the title company will research the property records to ensure that the home is able to be sold to you.
- After the appraisal and title search are complete, it’s time to set a closing date! You’d think this would be the last step but between now and the closing, we will be working very hard in the background to make sure everything is in order.
- The loan processor will make sure all of the required documentation has been provided and verify the accuracy of the items provided. They will then send the file to underwriting to complete the loan. During this time, you may not hear much from us, that is a good thing! If you do hear from us, it’s simply because we need a little more information to complete your loan. Don’t worry, this is normal!
- Finally, you show up to your closing and move in to your new home! Congratulations.
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Getting Started
1. Select a Loan Originator
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Choose the Loan Originator you’d like to work with and give them a call! They will help you start the process.
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2. Get Pre-Qualified
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This is an absolute must but don’t worry, your Loan Originator will do all of the work for you. Prior to shopping for homes, you need to know how much house you can afford and what price range you are qualified for. A Pre-Qualification Letter is a letter from us, the lender, telling the seller that you will be able to purchase their home. Not only do some real estate agents refuse to show homes until you have a pre-qualification letter in hand, there is nothing worse than finding your dream home and then finding out you can’t afford it.
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3. Get Your Financial Paperwork Together
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In order to approve you for a loan, your loan originator will need to know all your financial information. Bring the following paperwork with you to your first meeting with them. This will ensure they have the information they need and will get things off to a great start.
- Your past 2 years W2’s and any other documentation pertaining to other income sources. If you are self-employed, also bring your last 2 years of personal and corporate tax returns.
- Pay stubs from the last 30 days, including Year-to-Date totals.
- Last 2 months statements from any assets you have including Bank Statements, 401k, pensions, etc.
- Photo ID
- Divorce decree or Separation Agreement if applicable
- Bankruptcy schedules and discharge papers if applicable.
- Social Security Awards Letter if applicable
- If you are a veteran, please bring your DD-214.
The most important thing about this step is being honest and open with your Loan Originator. They are here to help you and without all the necessary information, they can’t do their job. Giving them false information or leaving things out will only delay the process.
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Other Helpful Tools
Check Your Credit
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As you may know, whenever you get a loan there is a credit check done, this is also true in the case of home loans. Before talking to a Loan Originator about getting a home loan, make sure you know what your credit looks like. Use your credit report to identify what your score is, do any cleaning up that may be necessary, and to ensure there is no suspicious activity or outstanding debts that need corrected. If you are not sure if something needs improved, your Loan Originator can help you with that.
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Create a Budget
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Knowing how much of a monthly payment you can afford will be helpful when speaking with your loan originator and creating a budget will help you to figure that out. It’s not nearly as hard or scary as it sounds! Take a few minutes prior to meeting with your loan originator, just to get an idea of what payment amount you are comfortable with.
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