The Loan Process?
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Get Qualified:
Getting qualified before you
apply for a loan can help you understand
how much you can borrow.
When buying a home,
Capital
Line pre-approves
each of our clients. We run your credit,
verity your income, assets, and
employment thru a face to face interview
or over the phone. It's highly
recommended that you get
pre-approved before you start looking for
a home. Being pre-approved
will:
- Inform you of your maximum
affordable home value, and save you
from previewing properties outside
your price
range.
- Put you in a stronger negotiating
position with the seller, because the
seller will know your loan is
pre-approved.
- Help you close quickly, since
your loan is
pre-approved.
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 Shop Loan Programs and
Rates: What loan program is best for your
situation?
Lenders offer many different loan
options. Think about how long you plan to
keep the loan. If you plan to sell your home
in a few years, you may want to consider an
adjustable rate or balloon loan. If you plan
to keep your home for a longer time, you may
want to consider a fixed rate loan.
Understand the relationship between
rates and points. Points are considered
prepaid interest and may be tax deductible.
Each point is equal to 1 percent of the loan.
For example 1 point on a $150,000 loan is
$1,500. The more points you pay, the lower
your rate. Compare different loan programs.
With so many programs to choose from, it's
hard to figure out which program is best for
you. Consult an experienced Capital Line
mortgage professional who can help you
find a loan program that best fits your
short- and long-term
plans. |
Obtain Loan Approval:
Once your
offer is accepted or we choose to move forward
with your refinance, Capital Line and our
selected lender will begin the process of
obtaining loan approval. 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.
- Notify your Capital Line
mortgage professional before applying
for any new credit, including credit
cards, or any new personal loans.
Some loan programs have strict
guidelines regarding your credit
score. Credit inquiries may lower
your credit score and may have an
adverse affect on your loan
approval.
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Close the
Loan: After your
loan is approved, you will be required to sign the final loan
documents. This will normally take place in the presence of a
notary public. Be prepared to:
- Bring a cashier's 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 the accuracy of
the name and address on the loan documents.
- Sign the loan documents.
The notary will require that you have your picture ID with
you. Some lenders also require seeing your Social Security
card.
Your 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 three days to review the documents before your loan
transaction can close. Purchase transactions do not have a
three day rescission period.
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