Make no mistake, there’s a lot involved in getting a mortgage loan. We understand that some buyers (first-time homebuyers in particular) have very little idea of how the process actually works. We do most of the heavy lifting for you, so you can concentrate on what’s important — buying new furniture, calculating your budget, or finding your dream home.There are four main steps involved in getting a loan. You’ll see that we’ve made your part in them as easy as possible, and we do all the work! That’s what we’re here for.
STEP ONE: How much can you can borrow?
The maximum loan amount a borrower may qualify depends on several factors.
- Combined gross monthly income of all borrowers;
- Stability of employment;
- Current monthly debt obligations and balances;
- Credit repayment history and credit scores;
- Current available assets, both liquid (checking/ savings) and non-liquid (stocks, bonds, retirement accounts, etc.)
While these are the main components of mortgage credit analysis, there are other factors that are considered by virtually every lending institution and agency:
- Number of dependants;
- Current housing payment vs. the proposed payment – is there payment shock?;
- Maintenance, repairs and utilities;
- Other items that are unique to your situation.
Depending on the your overall profile, our primary goal is to determine which of the numerous types of loan programs available in the market will best fulfill your needs. We can assist you in developing a short-term and long-term borrowing strategy that will be in your best interest whether for a new home purchase or a refinance.
In either case, our goal is to provide you with outstanding service at the most competitive rates.
STEP TWO: Get pre-approved
As a prospective home-buyer, it is of extreme importance that your ability to obtain financing is as bulletproof as possible. You supply us information about your employment, your assets, your residence history, and so on. We get your permission to run your credit score and collect your income documentation. When we review all this information and receive an initial approval we give you a Pre-Approval Letter. Writing offers with anything less than this is simply a waste of your time, you will not be perceived as serious by home sellers. Contact our Sacramento home loan specialists for consultation today.
STEP THREE: Offer acceptance
Once you’ve made an offer and it’s been accepted, your loan officer will forward a list of items you will need to prepare. This may include updated income and asset documentation, letters of explanation, and any information missing from the loan application. You also will be given an updated rate quote and alock or float recommendation. Right away (as provided in your contract), your Real Estate Agent will have you do the Pest Inspection and Home Inspection.
Your lender will order and review the Appraisal. These items will wither help support the sales price or tell you right away if there are problems. Usually you are protected by a contingency period which gives you some time (typically 10 days) to do these inspections without risking your deposit. If there is a problem found, your Sacramento home loan agent will work with the Sellers’ Agent to negotiate in your favor.
STEP FOUR: Underwriting and closing
Once all items requested by your Sacramento home loan officer, the fully executed purchase contract and all necessary documents such third party items provided by Title and/or Escrow companies are received, your loan file will be submitted to Underwriting. After this stage is complete the Underwriter will issue an Approve with Conditions statement which lists items that must be received in order to reach Final Approval.
Once these items have been reviewed, the file is approved to release Loan Documents. You will be contacted at this point by a Notary with whom you will sign your final loan paperwork. Those documents with original signatures are overnighted for final review. Once final review is complete, your loan will fund: meaning a wire transfer will be made directly to the title and/or escrow company.
The title and/or escrow company will then do the accounting and disburse monies to all interested parties including the seller. While this is happening, you will be legally placed on title as the new owner of record: a process involving the County recorder’s office that usually happens the same or next day the loan funds.
California law requires that the seller’s agent surrender keys and possession of the house to you by 5PM the same day your loan is recorded.
Whether you are first time home buyer, purchasing your dream home, refinancing an outstanding home loan, or consolidating debt, the highly experienced team of mortgage brokers here can help you take that first step toward a financial solution. Located in Sacramento, CA building and maintaining strong and lasting relationships is and has always been our goal!