|
The Loan Process?
|
Get Qualified: Getting
qualified before you apply for a loan can help you understand how much you can
borrow.
When buying a home, Capital
Line pre-approves each of our clients. We run your
credit, verity your income, assets, and employment thru a face to face interview or
over the phone. It's highly recommended that you get pre-approved before
you start looking for a home. Being pre-approved
will:
- Inform you of your maximum affordable home
value, and save you from previewing properties outside your price
range.
- Put you in a stronger negotiating position
with the seller, because the seller will know your loan is
pre-approved.
- Help you close quickly, since your loan is
pre-approved.
|
|
Shop Loan Programs and Rates:
What loan program is best for your situation?
Lenders offer many different loan options. 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's hard
to figure out which program is best for you. Consult an experienced Capital Line
mortgage professional who can help you find a loan program that best fits your
short- and long-term plans. |
Obtain Loan Approval: Once
your offer is accepted or we choose to move forward with your refinance, Capital
Line and our selected lender will begin the process of obtaining loan
approval. This involves verifying your:
- Credit history
- Employment history
- Assets including your bank accounts, stocks, mutual fund and
retirement accounts
- Property value
- 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
behalf.
- Notify your Capital Line mortgage professional before
applying for any new credit, including credit cards, or any new personal loans.
Some loan programs have strict guidelines regarding your credit score. Credit
inquiries may lower your credit score and may have an adverse affect on your
loan approval.
|
Close the Loan: After your loan is approved, you will be required to sign the
final loan documents. This will normally take place in the presence of a notary public. Be prepared
to:
- Bring a cashier's 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 the accuracy of the name and address on the loan
documents.
- Sign the loan documents. The notary will require that you have your picture ID with you.
Some lenders also require seeing your Social Security card.
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 three days to review the
documents before your loan transaction can close. Purchase transactions do not have a three day
rescission period.
Get Started Today: Contact us regarding your new mortgage.
|
|
