|
About the Mortgage Loan Process
There are five
basic steps in the loan process. Here is a roadmap to guide you through the
details of getting your new loan:
Organize Your Materials
Qualify For Your Mortgage
Compare Loan Programs
Get Your Loan Approved
Close Your Mortgage
If you need a
mortgage for a new home, or if you are
refinancing your property...
-
In order to document your income, you
will need to provide two years of W-2 statements and one month of
paystubs. You will need to provide two years of tax returns and a
current profit and loss statement if you are self-employed. If you are
receiving alimony, please provide a copy of the divorce decree.
-
If you own rental property, you must
provide current rental agreements as well as two years of tax returns.
-
In order to expedite the loan approval
process, you should plan to provide three months statements for
all of your banking and investment accounts.
-
If you require cash back from a mortgage
refinance, you will need to include a letter explaining how you intend
to use the money.
-
Non-US citizens must provide a copy of
their current green card or visa.
If you will be
applying for a home equity loan...
-
You will need to provide W2 statements
for the past two years, and your current paystub. If you are
self-employed, you will need to provide tax returns for two years as
well as a current profit and loss statement.
-
If you own rental property, you must
provide current rental agreements as well as two years of tax returns.
-
You will need to provide a copy of your
original mortgage, which us typically found in your closing documents.
-
You will need to create a letter
describing how you plan to use the home equity loan.
-
Non-US citizens must provide a copy of
their current green card or visa.
We recommend that you get pre-approved for
your mortgage before you begin shopping for a new house. When you are
pre-approved, you have several advantages:
-
You will find out the price range that
you can afford to purchase. You will know in advance what your maximum
purchase price can be.
-
Since the seller knows your loan is
already approved, you will have more leverage to negotiate a good price.
-
Your loan will close more quickly, since
it is already approved.
When
you're shopping for a loan, there are several considerations you will want
to keep in mind:
-
How long do you plan to stay in your
home? If you plan to remain in your home for many years, you'll
probably want to look at fixed rate loans. However, if you are going to
be selling the home within a few years, you may want to consider an
adjustable rate mortgage.
-
Do you know about the
difference between rates and points? "Points" are tax deductible
because they are treated as prepaid interest. A single point equals one
percent of the total loan amount. As an example, one point on a $125,000
loan is $1,250.
-
Have you compared different programs?
As you navigate the confusing variety of loans to chose from, each with
different rates, points and fees, it's difficult to know what program
suits you best. That's why it's helpful to have an experienced loan
officer guide you through the process.
Your loan approval process starts as soon as we
receive your application. In order to approve your loan, we will verify
your:
-
Credit history
-
Employment history
-
Financial assets
-
Property value
Since every circumstance is unique, you may be asked for
additional documents to verify your application. You can help expedite
this process when you:
-
Fill out your loan application
completely.
-
Respond as soon as possible to requests
for additional documents. This is very important if your rate is locked
or if you intend to close by a certain date.
-
Defer major purchases. You may adversely
affect your application if you buy a car, furniture or another house
while your loan is in process.
-
Avoid any major deposits to your banking
accounts that cannot be verified. If you are receiving money from
relatives in order to complete your purchase, please let us know.
-
If you will be out of town near the loan
closing date, plan to sign a power of attorney in order to authorize
someone else to sign on your behalf.
Once your loan has been approved, you will
need to sign the final loan documents in the presence of a notary public.
At the closing, you will need to:
-
Bring a cashiers check for the amount of
your down payment and closing costs, if required. Personal checks are
not acceptable.
-
Review your final loan documents. Check
the interest rate and loan terms to verify that they are the terms you
agreed to. Make sure that all names and addresses on the loan are
correct.
-
Sign the loan documents.
Most home loans will close shortly after
the final documents have been signed. If you are refinancing or getting a
home equity loan, you have 3 days to review the documents before the
transaction can close, according to federal law.
Fleming Mortgage Services
Cala Hills Professional Park
2123 SW 20th Place, Suite 102
Ocala, Florida 34474
Phone:
(352) 237-5168
Toll Free: 1-877-237-5948
Fax: (352) 237-7091
E-mail:
info@flemingmortgage.com
© 2005, Fleming Mortgage Services |
