The Loan Process | Lender in California

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Getting a Home Loan

 
 
Once you select us to obtain your home loan, you’ll be amazed at how quickly and simply the loan process moves. Before you know it, you’ll have a mortgage that suits your lifestyle and saves you money.

Throughout the loan-application process, we provide you with regular updates. You can also e-mail us with questions or new information. And if you want assistance, as your mortgage expert Jon is just a phone call away.

Here’s an overview of the loan-application process

 

STEP ONE — Apply Now! Getting started is easy
Before house hunting, you should get pre-approved so that you know how much house you can afford. If you are refinancing, there is no need to get pre-approved; simply turn in the documents from the checklist.

The following information is usually required during the loan process:

  • Application Form
  • Two Years Tax Returns
  • Two Years W2s
  • 30 Days Pay-stubs
  • Two Months Bank Statements
  • ID & Social Security Card
If you currently own Real Estate:

  • Mortgage Statement
  • Home Owners Association Statement
  • Home Owners Insurance Statement
  • Home Equity Statement (if applicable)

At the appropriate time we’ll order a property appraisal for you.



STEP TWO —

Once you are under contract or ready to start your refinance, we will submit your documentation to the bank. This initial submission usually takes around five business days. At this time, the bank reviews audits your file for compliance and issues a conditional approval or denial.

If your loan is approved with conditions, you must supply the other required documentation and resubmit the file for audit. This process usually takes 1-2 business days. One all your conditions are cleared, you are issued a clear to close and your closing disclosure is sent out. From this point, you must wait 3 days to comply with TRID. Once the 3 day waiting period is over, you are ready to close.



STEP THREE — Your Loan is Approved and Funded

If you are purchasing, your Real Estate Agent or the Seller will designate an Escrow/Title Company to handle the funding of your loan, along with many other factors which make your purchase go smoothly.

We will coordinate with the escrow team and you’ll sign the final papers at their office.

Simple, Straightforward, Cost Effective, and FAST!


Loan process
 

Pre-Qualification vs. Pre-Approval: What's the Difference?

Pre-Qualification

To get pre-qualified for a loan, I will collect information about your debt, income, and assets. We'll look at your credit profile and assess goals for a down payment and get an idea of different loan programs that would work for you. I will issue you a pre-qualification letter indicating the amount you are pre-qualified to borrow.

It is important to understand that a pre-qualification letter is just an estimate of what you are eligible to borrow, not a commitment to lend. Getting pre-approved for a loan gives you competitive advantage when the time comes to bid on a home because you have been approved for a loan for a specified amount.

Pre-Approval

To get pre-approved, you will complete a mortgage application and provide me with various information verifying your employment, assets and financial status such as W-2 forms, bank records and credit card statements. We'll review your mortgage options and submit your application to the lender that best meets your needs. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.

A pre-approval letter is not binding on the lender; it is subject to an appraisal of the home you wish to purchase and certain other conditions. If your financial situation changes (e.g. you lose your job), interest rates rise or a specified expiration date passes, your lender must review your situation and recalculate your mortgage amount accordingly.
 

Loan Programs

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Conventional

The general loan limits for 2017 have increased and apply to loans delivered to Fannie Mae in 2017. High Balance Loan limits vary from county to county. Contact me to review your county limits.

Jumbo

Borrowers who wish to obtain a mortgage loan in an amount that exceeds the 2017 conforming limits still have options. When a home loan exceeds the caps set by the Federal Housing Finance Agency, it is referred to as a “jumbo” mortgage product, and it cannot be sold to Fannie Mae or Freddie Mac.

USDA Loans

The United States Department of Agriculture offers a unique mortgage program for low-to-moderate income households seeking a primary residence in a rural setting whom are otherwise ineligible for a traditional loan. There is a maximum loan amount of $417,000 and no down payment required. It is available to first-time and repeat home buyers.


FHA / VA

An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA). Borrowers can qualify for an FHA loan with a down payment as little as 3.5%.

The Veterans Administration (VA) has a number of benefit programs aimed at helping our nation’s veterans and their families, including the VA home loan program. Through this program, eligible individuals can get a mortgage for a home at a competitive interest rate and with little or no down payment.


203K Renovation Loan

An FHA 203k loan is a product backed by the federal government and given to buyers who want to buy a damaged or older home in need of repairs. If you’re considering purchasing a home that needs a full renovations of a kitchen, bathroom or another area in the house, an FHA 203k lender would then give you the money to finance the house plus factor those renovation charges into the loan transaction.


Reverse Mortgage

A reverse mortgage is a unique tool designed for individuals 62 and older as an innovative financial planning strategy. Imagine enjoying monthly loan proceeds from the years you’ve invested in your home without the obligation of a monthly mortgage payment.

There are many benefits of a reverse mortgage but one of the most notable might be the pleasure of accessing part of the equity in your home and having the comfort of remaining in the home you have come to know and love for many years.

A reverse mortgage is available on primary residences and no repayment is due until the home is sold, or the last borrower passes away or permanently leaves the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month.