The first step in securing a loan is determining how much you can borrow. Before starting your home search, it's important to understand what price range fits your budget. By answering a few basic questions, we can assess your buying power based on standard lending criteria. You may also choose to get pre-approved for a loan, which involves verifying your income, credit, assets, and liabilities. Pre-approval is highly recommended before beginning your home search because it allows you to:

• Focus on homes within your budget.
• Strengthen your negotiating position, as the seller knows your loan is already approved.
• Close on your loan quicker.

Home loans come in various forms, and choosing the right one for your financial needs and goals requires understanding the benefits of each. Whether you're buying a home or refinancing, there are two primary types of home loans, each suited for different circumstances.

Fixed-rate mortgages typically have terms of 15 or 30 years, with interest rates and monthly payments that remain constant throughout the life of the loan. This option is ideal if you:

• Plan to stay in your home for more than 7 years
• Prefer the stability of consistent principal and interest payments
• Want to avoid the risk of future payment increases
• Expect your income and spending habits to remain steady

Adjustable-rate mortgages (ARMs) also have 15 or 30-year terms, but the interest rate may fluctuate over time, causing your monthly payments to rise or fall. This type of loan is best suited if you:

• Plan to stay in your home for less than 5 years
• Don’t mind periodic changes to your monthly payments
• Are comfortable with the possibility of future payment increases
• Anticipate an increase in your income over time

By weighing these factors and consulting with us, you can confidently select the loan that aligns with both your current situation and long-term financial goals.

Once you've determined the right loan for you and found the perfect property, the next step is to officially apply for your mortgage loan. During this process, you'll submit a detailed application with important financial information, including your income, assets, employment history, and credit score. The lender will use this information to assess your eligibility and decide the loan amount and terms you qualify for. It's essential to provide accurate and complete information to ensure a smooth approval process.

Document Checklist

Although lenders follow government guidelines, loan approval criteria can vary based on the specific loan terms. In general, two main factors influence approval: your ability and willingness to repay the loan, and the value of the property. Once we receive your application, the approval process begins right away. Our loan processor will verify all provided information, and if any discrepancies arise, they will work with your loan officer to resolve them. The key areas we review include:

• Income / Employment Check: We assess whether your income can cover monthly payments, using industry standards to evaluate both income and debts.
• Credit Check: Your credit history is analyzed to determine how well you’ve repaid past debts, including any missed or late payments.
• Asset Evaluation: We'll verify that you have the necessary funds for the down payment and closing costs.
• Property Appraisal: The property must have enough value to secure the loan. Location, zoning, and market conditions will influence this appraisal.
• Other Documentation: Additional paperwork may be required to complete the approval.

To improve your chances of approval:

• Ensure your loan application is fully completed. Using our online forms can speed up the process.
• Respond quickly to any requests for additional documentation, especially if your rate is locked or you're close to your closing date.
• Avoid moving large sums of money between bank accounts unless a clear paper trail is provided. If you're receiving financial gifts from relatives, prepare a gift letter in advance.
• Hold off on major purchases until your loan is finalized, as new debts could negatively affect your application.
• Avoid traveling near your loan's closing date. If necessary, consider appointing a Power of Attorney for the signing.

Once your loan is approved, the next step is signing the final loan documents. Before signing, carefully review the documents to ensure the interest rate and loan terms match what was promised. Double-check that your name and property address are correct as well. The signing typically occurs in front of a notary public.

At closing, you'll be responsible for several fees associated with the mortgage and property transfer. Be sure to bring a cashier’s check for the down payment and closing costs, as personal checks are usually not accepted. You will also need to provide your homeowner’s insurance policy, any required additional coverage like flood insurance, and proof of payment.

After signing, your loan will typically close soon after. For owner-occupied refinance loans, federal law gives you a 3-day review period before the transaction is finalized.