Application: The 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.
For self employed borrowers, employed in sales, paid by commission, or owns rental real estate:
- 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.
Once the 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.
Once all 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.