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1. Get Qualified
Getting qualified before you apply for a loan can help you understand how much
you can borrow. When buying a house, you may get pre-qualified or pre-approved.
You can typically get pre-qualified over the phone or on the Internet in a
few minutes. A pre-qualification
is not as beneficial as a pre-approval. (This is where your credit, income,
assets
and
liabilities are verified.)
It is highly recommended that you get pre-approved before you start looking for
a house.
This will help you:
1. Find out the maximum house you can buy, so you don't waste time looking for
properties you can not afford.
2. Puts you in a stronger position when you are negotiating with the seller,
because the seller knows that your loan is already approved.
3. Helps you close quickly, since your loan is already approved.
2. Shop Loan Programs
When considering the best loan program:
1. Think about how long you plan to keep the loan. If you plan to sell the house
in a few years, an ARM (adjustable rate mortgage) or balloon loan may be your
answer.
On
the other hand, if you plan to keep the house for a longer time, you may want
to
look at a fixed-rate loan.
2. 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. One point on a $150,000 loan would be $1,500. The more points
you pay, the lower the rate you will get.
3. Compare different programs. There are many variables to consider. Talk to
Superior Financing about the best option for your situation.
3.
Gather Documents
If you are purchasing a home, you will need to provide your
sales contract.
To speed the process, these documents are needed:
• Provide
basic employment information.
Salaried employees:
Provide employer's name(s) and address(es)
for the past two years.
Self-employed and commissioned employees:
Provide your most recently filed federal tax return, plus
the return for the preceding year (for a total of two tax
returns) and a YTD profit and loss statement (if self-employed).
• Rental property owners: Provide rental agreements
and two years' tax returns.
• Financial institutions' name(s), address(es), and account
numbers for your bank, mutual funds, IRA, 401K, stock brokerage,
as well as statements for past (?????) months.
• Copy
of divorce decree if applicable.
• Non-citizens: Provide a copy of
your green card, H-1 or L-1 visa (whichever is relevant).
• Cash-out refinance: Explain what you intend to do with the proceeds
of your cash-out refinance.
4. Apply!
Apply online today or call us at 1-888-996-0699.
Once your loan application is received,
we will call you to
go over the information on your application and
discuss the best options for you. You will be mailed a loan
application with the final details, which you should review
carefully. Call us with any questions!
Then we will begin
to process the loan. This means verifying your income (usually
through income tax returns and/or W-2s), checking your
employment and credit histories, and reviewing your financial
assets/liabilities in bank accounts, stocks, dividends, mutual
fund and retirement accounts, and any other relevant assets.
Do not include alimony and child support payments unless
you want them to be considered as necessary in paying off
the loan. We also need to assess the property value.
To improve your chances of getting a loan approval:
1. Fill out the loan application completely and accurately.
2. Respond promptly to any requests for additional documents.
This is especially critical if your rate is locked or if
you plan to close by a certain date.
3. Do not make any major purchases. Do not buy a car, furniture
or another house till your loan is closed. Anything that
causes your debts to increase might have an adverse affect on your current
application.
4. Do not move money into your bank accounts unless it can
be traced. If you are receiving money from friends, family
or other relatives, please contact us.
If your loan has been declined,
we will notify you in writing.
After your loan is approved, you will be required to sign
the final loan documents. This will normally take place
in front of a notary
public. If you are out of town on the closing date, sign
a power of attorney to another who can act on your behalf.
At closing:
1. Bring a cashiers check for your down payment and closing
costs if required. You will be informed of these costs
before coming to the closing.
2. Review the final loan documents for accuracy.
3. Sign the loan documents.
Your loan will normally close shortly after you have signed
the loan documents. On refinance and home equity loan transactions,
federal law requires that you have 3 days to review the
documents before your loan
transaction can close.
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Loan
Process
