loan process starts with a loan application.
Loan Docs: Clients will then have
to bring loan documents such as their past two years W-2 statements, pay stubs
covering the last thirty days, most recent three months bank statements, most
recent transaction summary of 401K, IRA, or mutual fund accounts, photocopies
of any stocks or certificates of deposits, copy of the purchase and sale agreement,
if you are currently renting….either 12 months cancelled rent checks or the
name and address of your current landlord. If divorce a fully executed divorce
decree, a letter of explanation for any known credit problems.
employed borrowers, employed in sales, paid by commission, or owns rental real
• Two years
signed personal tax returns- including all schedules.
• If self-employed through a corporation, last two years corporate returns as
well as a year-to-date profit and loss statement and balance sheet.
For other loan
programs such VA or FHA, other documents might be required.
application is complete, then processing begins. Credit reports will be
ordered, appraisal will be ordered, title reports will be ordered and accounts
will be verified.
reports are received your files will be compiled with all documents and sent
out to different lenders to see who will give out an approval. Usually, there
will be additional documents needed for the approval so those conditions will
be fulfilled and the lenders will then either issue a denial or approval for
the loan. At the same time interest rates will be locked.
Once the loan
has been approved, the loan package will be sent to escrow for borrowers to
sign. Once signed it will be sent back to the lender, the lender will forward
it to their funding department and once funded, the loan is closed.