The Loan Process

There can be a lot involved in financing the purchase of a new home, the completion of a home improvement project or the refinance of your current mortgage, however, this site is here to help you understand the process and I am always available to help assure your next transaction goes smoothly. I will be glad to do most of the heavy lifting for you, so you can concentrate on what’s important – preparing to build or purchase your new home, obtain funds for other endeavors or make plans for your home equity checks.

There are four main steps involved in getting a loan and I can assure you that will make your part in them as easy as possible, and we do most of the work.

Step One: Determine how much you can borrow.
This is determined by how much of a monthly payment you can afford and, given your unique credit and employment history, income and debt, and goals, how much the lender will loan you. You can achieve this by reviewing the article on this site entitled “Debt Ratios” and /or giving me a phone call or dropping me an e-mail. With answers to a few questions, and taking into consideration standard lender guidelines, you will get a good idea of the terms and loan programs you can expect to benefit most from.

Step Two: Pre-qualify for your loan.
If you are purchasing a new home getting pre-qualified gives you buying clout. Most realtors will not work with you in finding a new home unless you have taken the time to demonstrate that a lender has done its due diligence on your credit profile and issued a pre-qualification letter. Submitting a pre-qualification letter when making an offer on a home gives you buying clout by showing the seller that you are not wasting their time and you are ready and able to purchase their property. All you need to do is supply information about your employment, your assets, your residency history, etc. and give us permission to pull your credit report. We will review all of this information and issue a pre-qualification letter.

Step Three: Apply now! We will make it easy!
Once you have negotiated a purchase agreement, completed your construction budget, etc. it’s time to complete the approval process. If you haven’t completed the formal application yet you will need to do so now. We will obtain loan approval for you based upon your loan needs and forward to you a loan commitment letter. Once you have signed the loan commitment letter we will order the appraisal of the real estate and order a title search from either an attorney of your choice or a bank chosen attorney who will assure the title of the property has no issues.

Step Four: Your loan is funded.
You will sign the necessary loan documents at either the bank or of the office of one of our designated closing agents. The bank or closing agent will complete the closing statement and take care of any title requirements such as obtaining mortgage payoffs, past due taxes, mechanic liens, etc. that may be attached to the property. After the closing takes place the new deed and mortgage will be recorded at the Registry of Deeds documenting your ownership and the bank’s lien on the property. This whole process should be seamless for you and you will just need to review the closing statement prior to closing and bring to the closing the corresponding required funds if there are some due.

Your loan is closed and you either have a new home or have refinanced your existing mortgage.

Related Links:
Debt/Income Ratios
Should I get Prequalified?
Get your Loan Faster
Borrower Don'ts