If you are buying or refinancing a home
Step 1
Organize your documents
1. If you are salaried: provide two years W-2 and one month of paystubs OR if you are self-employed: provide two years tax returns and a YTD profit and loss statement.
2. If you own rental property, please provide rental agreements and two years tax returns.
3. If you wish to speed up the process, please also provide three months bank statements for each bank, stock and mutual fund account.
4. Provide recent copies of any stock brokerage or IRA/401K accounts that you may have.
5. If you are requesting a cash out refinance please provide a letter explaining what you plan to do with the proceeds.
6. Provide a copy of divorce decree if applicable.
7. If you are NOT a US citizen, provide us with a copy of your green card (front & back), or if you are NOT a permanent resident provide us with your H-1 or L-1 visa.
8. Finally we will fill out the loan application together completely.
*Please note: This is especially critical if your rate is locked or if you plan to close by a specific date.
Respond promptly to any requests for additional documents.
*Please do not make any major purchases.
*Please 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.)
*Please 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.)
*Please Do Not go out of town around the closing date.
(If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.)
Step 2
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 where you have to go through a more rigorous process which includes verification of your credit, income, assets and liabilities. 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.
Step 3
Obtain Underwriters Loan Approval
(Clear to Close)
Once your loan application has been received we will start the loan approval process immediately. This involves the underwriter verifying:
1. Property value
2. Credit history
3. Employment history
4. Assets including your bank accounts, stocks, mutual fund and retirement accounts.
Please note: Based on your specific situation, additional documents or verifications may be required.
Underwriting turn times:
Underwriting turn times are displayed in business days or hours and are intended to be a general indicator or estimate of how long you can expect to wait for a decision on your loan or conditions. The actual turn time for your individual loan may vary depending on the complexity of the loan. Turn times are subject to change at any time.
The date displayed for the CAD Initial Review turn time represents the number of days required for the combination of CAD's closing package review and HUD Review's compliance review (RESPA & predatory testing).
Frequently Asked Questions:
What is underwriting turn time?
Underwriting turn time is the amount of time it takes the underwriter to provide a decision on the data and documents you submit.
How is underwriting turn time calculated?
For new files, the turn time is the amount of time, in business days or hours, it takes from the time your complete underwriting document package is received to the time a decision status (Approved with Conditions, Final Approval Clear-to-Close, Denied, etc.) is placed on the loan file. Turn times are provided by underwritings automated system.
If the turn time is less than one business day it will be displayed in hours. If the turn time is equal to or greater than one business day it will be displayed in days.
Here's an example: When a file is uploaded to underwriting at 10 a.m., and the loan is placed in an Approved with Conditions status at noon, then the turn time is two business hours. For conditions, let's look at an example that spans two days. Assume we upload the conditions in at 4 p.m. on Monday and the loan is placed in a Final Approval Clear-to-Close by 9 a.m. Tuesday. Then the turn time is one business hour (from 4 to 5 p.m. Monday - business hours are 9 to 5 Mon-Fri).
Could the actual turn time on my loan be different from the current estimated underwriting turn time?
Yes, the estimated underwriting turn times are intended to be a general indicator of how long to expect to wait for a decision on the loan submitted or conditioned. The actual turn time for your individual loan may vary depending on the complexity of the loan.
To improve your chances of getting a loan approval:
-Fill out the loan application completely.
-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.
-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.
-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.
-Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
4th Step
Closing the Loan
After your loan is underwritten, you will be required to sign the final loan documents. This will normally take place in front of a notary public. Be prepared to:
Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally not accepted.
Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify that the name and address on the loan documents are accurate.
and the last but not least...
Step 5
Sign the loan documents
*Your loan will normally close shortly after you have signed the loan documents. On refinances and home equity loan transactions federal law requires that you have 3 days to review the documents before your loan transaction can close.