Step 1: Search
Find out how much you can borrow
The first step in obtaining a loan is to determine how much money you can borrow. In case of buying a home, you should determine how much home you can afford even before you begin looking. By answering a few simple questions, we will calculate your buying power, based on standard lender guidelines.
You may also elect to get pre-approved for a loan which requires verification of your income, credit, assets and liabilities. It is recommended that you get pre-approved before you start looking for your new house so you:
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Look for properties within your range.
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Be in a better position when negotiating with the seller (seller knows your loan is already approved).
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Close your loan quickly (loan already approved).
Step 2: Select
After you obtain the required documentation needed for the loan application, our office will schedule an appointment for you to meet with our loan consultant and complete the application. Any questions you may have about the approval process and any other items that you are wondering about can be addressed at this time.
Step 3: Apply
After you obtain the required documentation needed for the loan application, our office will schedule an appointment for you to meet with our loan consultant and complete the application. Any questions you may have about the approval process and any other items that you are wondering about can be addressed at this time.
Step 4: Begin
Begin loan processing. Although lenders conform to standards set by government authorities, loan approval guidelines vary depending on the terms of each loan. In general, approval is based on two factors: your ability and willingness to repay the loan and the value of the property.
Your loan processor will verify all of the information you have given. This information includes:
1. Income/Employment Check
Is your income sufficient to cover monthly payments? Industry guidelines are used to evaluate your income and your debts.
2. Credit Check
What is your ability to repay debts when due? Your credit report is reviewed to determine the type and terms of previous loans.
3. Asset Evaluation
Do you have the funds necessary to complete the purchase and pay closing costs?
4. Property Evaluation
Is there sufficient value in the property? The property is appraised to evaluate physical condition and location.
5. Other Documentation
In some cases, additional documentation might be required before making a final determination regarding your loan approval.
Step 5: Close your loan
After your loan is approved, you are ready to sign the final loan documents. You must review the documents prior to signing and 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. The signing normally takes place in front of a Justice of Peace or bank officer.
