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An Overview of the Florida Mortgage Loan Process
Please review the following Florida
mortgage loan information. We are happy to help assist
you in any way with making your home purchase as simple
as possible. We specialize in many mortgage loan programs
throughout the state of Florida include VA, home equity
and low fixed rate mortgages.
If you are buying or refinancing
a home
- 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.
- If you own rental property,
please provide rental agreements and two years tax
returns.
- If you wish to speed up the
approval process, please also provide three months
bank statements for each bank, stock and mutual
fund account.
- Provide recent copies of any
stock brokerage or IRA/401K accounts that you may
have.
- If you are requesting a cash
out refinance please provide a letter explaining
what you plan to do with the proceeds.
- Provide a copy of divorce decree
if applicable.
- 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.
If you are applying for a home
equity loan
- 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.
- If you own rental property,
please provide rental agreements and two years tax
returns.
- Please provide a copy of the
note on your first mortgage. This will normally
be found in your closing loan documents.
- Please provide a signed letter
explaining what you plan to do with the proceeds.
- Provide a copy of divorce decree
if applicable.
- 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.
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:
- Find out the maximum house
you can buy, so you don't waste time looking for
properties you can not afford.
- Puts you in a stronger position
when you are negotiating with the seller, because
the seller knows that your loan is already approved.
- Helps you close quickly, since
your loan is already approved.
To shop for a loan you will need
to:
- Think about how long you
plan to keep the loan. If you plan to sell the
house in a few years you may want to consider an
adjustable or balloon loan. On the other hand, if
you plan to keep the house for a longer time, you
may want to look at fixed loans.
- 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. So for
example 1 point on a $150,000 loan is $1,500. The
more points you pay, the lower the rate you will
get.
- Compare different programs.
Shopping for a loan can be difficult. With so many
programs to choose from, each of which has different
rates, points and fees, it's hard to figure out
which program is best for you. That's where an experienced
loan officer can help you make a decision that's
best for you.
Once your loan application has
been received we will start the loan approval process
immediately. This involves verifying your:
- Credit history
- Employment history
- Assets including your bank
accounts, stocks, mutual fund and retirement accounts
- Property value
Based on your specific situation,
additional documents or verifications may be required.
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.
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. 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.
- Sign the loan documents.
Your Florida mortgage 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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