The Loan Process
Organize your documents
If you are buying or refinancing a home
- If you are salaried: provide previous year's W-2 and your most recent paystub OR if you are self-employed: provide two years personal tax returns
- If you own rental property, please provide rental agreements or most recent tax returns.
- Provide most recent bank statements for each bank, stock, mutual fund and retirement account.
- Provide copy of divorce decree if applicable.
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. You can typically get pre-qualified over the phone in a few minutes. A pre-qualification is not as beneficial as a pre-approval where you have to go through a more in-depth process which includes verification of your credit, income, assets and liabilities. Our knowledgeable Loan Consultants can help you to prepare the pre-qualification and:
- Find the maximum house you can buy, so you won't waste time looking for properties outside your price range.
- Helps to put you in a stronger position when negotiating with the seller, because the seller knows that you're already approved.
Shop loan programs and rates
Imax Realty & Mortgage, Inc. offers a full menu of loan programs and pricing options. With more than 30 of the nation¡¦s best lenders standing behind us, we can find the program specifically designed to fit your needs. 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 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 and the smaller your monthly payment.
- Compare our different programs. We have many programs to choose from; each has different rates, points and fees. It can be hard to figure out which program is best for you. That is where our experienced loan officers can help you make a decision that's best for you.
Obtain Loan Approval
When your loan application is received we will start the loan approval process immediately. This involves examining 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 obtaining 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.
Close the Loan
When your loan is approved, you will need to sign final loan documents. The escrow officer assigned to your loan will contact you to set up your closing. Be prepared to:
- Bring a cashier's check for your down payment and closing costs if required. Personal checks are normally not accepted.
- The escrow officer will notify you of any additional documentation required at closing.
- At closing, all documents will be reviewed with you in order to ensure that you completely understand all that you will be signing.
- Sign the loan documents.
Your loan will normally fund after you have signed the loan documents. On refinance and home equity loan transactions, federal law requires that a 3-day rescission period take place before the loan will fund.