Begin Mortgage Processing

Begin loan processing

Although lenders conform to standards set by government agencies, 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.

Once your loan application has been received we will start the loan approval process immediately. Your loan processor will verify all of the information you have given. If any discrepancies are found, either the processor or your loan officer will troubleshoot to straighten them out. This information includes:

Income/Employment Check

Is your income sufficient to cover monthly payments? Industry guidelines are used to evaluate your income and your debts.

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. Any lapses or delays in payment are considered and must be explained.

Asset Evaluation

Do you have the funds necessary to make the down payment and pay closing costs?

Property Appraisal

Is there sufficient value in the property? The property is appraised to evaluate physical condition, location and zoning.

Other Documentation

In some cases, additional documentation might be required before making a final determination regarding your loan approval.

In order to improve your chances of getting a loan approval:

Fill out your loan application completely. You may use our online forms to expedite the process.
Respond promptly to any requests for additional documentation especially if your rate is locked or if your loan is to close by a certain date.
Do not move money into or from your bank accounts without a paper trail. If you are receiving money from friends, family or other relatives, please prepare a gift letter and contact us.
Do not make any major purchases until your loan is closed. Purchases cause your debts to increase and might have an adverse affect on your current application.
Do not go out of town around your loan's closing date. If you plan to be out of town, sign a Power of Attorney to authorize another individual to sign on your behalf when your loan is expected to close.

Select the right loan program

Home loans come in many shapes and sizes. Deciding which loan makes the most sense for your financial situation and goals means understanding the benefits of each. Whether you are buying a home or refinancing, there are 3 basic types of home loans. Each has different reasons you'd choose them.

1) Fixed Rate Mortgage

Fixed rate mortgages usually have terms lasting 15 or 30 years. Throughout those years, the interest rate and monthly payments remain the same. You would select this type of loan when you:

Plan to live in home more than 7 years
Like the stability of a fixed principal/interest payment
Don't want to run the risk of future monthly payment increases
Think your income and spending will stay the same

2) Adjustable Rate Mortgage

Adjustable Rate Mortgages (often called ARMs) typically last for 15 or 30 years, just like fixed rate mortgages. But during those years, the interest rate on the loan may go up or down. Monthly payments increase or decrease. You would select this type of loan when you:

Plan to stay in your home less than 5 years
Don't mind having your monthly payment periodically change (up or down)
Comfortable with the risk of possible payment increases in future
Think your income will probably increase in the future

3) Combination Rate Mortgage

Combination rate mortgages combine fixed interest rates and adjustable interest rates. Lenders often refer to these loans as hybrid loans. For the first few years (3-7), the interest rate is fixed. It remains the same and so does your monthly payment. During the remaining years of the loan, your interest rate becomes adjustable and can vary. You would select this type of loan when you:

Want the stability of a fixed principal/interest payment in the short term
Want to repair your credit by demonstrating your ability to make regular payments, then refinance for a lower interest rate
Have a lot of consumer debt (these loans typically allow more)
Want to borrow more and get a lower monthly payment than a standard fixed rate loan

In selecting the best loan program, it is helpful to understand the relationship between rates and points. Points are considered to be prepaid interest and are tax deductible. Each point is equal to one percent of the loan amount. So for example 1 point on a $250,000 loan is $2,500. The more points you pay, the lower the rate you will get.

By carefully considering the above factors and seeking our professional advice, you should be able to select the one loan that matches your present condition as well as your future financial goals.