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Loan Process Overview

    


Save time and avoid delays by having this information available when you meet with your lender.
  • Copy of Purchase Sales contract or Offer to Purchase and all addenda (signed by buyer and seller)
  • Past 2 years' tax returns and W-2s
  • Past 2 years' employment history
  • Last month of consecutive paycheck stubs
  • Name, address and phone for past 2 years' residence(s) and landlord(s).
  • Last 2 months' statements for savings, checking, CD, money market accounts, etc.
  • Recent statement on retirement accounts (IRA, 401K, 403-B, Annuity, etc.)
  • Monthly payments and balances on all open accounts
  • DD-214 and Certificate of Eligibility (VA loans)
  • Disability Awards Letter ((VA loans, if applicable)
  • Divorce decree (if applicable)
  • Child Support order (if applicable)
  • Bankruptcy schedules/Discharge papers (if applicable)
  • Copy of most recent HUD-1 or settlement statement
  • If you are NOT a US citizen, provide a copy of your green card (front & back). If you are NOT a permanent resident provide a copy of your H-1 or L-1 visa.

Find out how much you are qualified to borrow

When buying a home, you may be pre-qualified or pre-approved. You can be pre-qualified over the phone or on the Internet in a few minutes. Pre-qualification is not as useful as pre-approval. Pre-approval requires a more rigorous process, including verification of your credit, income, assets and liabilities. It is highly recommended that you be pre-approved before you start looking for a home.

Being pre-approved will:
1.      Inform you of your maximum affordable home value, and save you from previewing properties outside your price range.
2.      Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved
3.      Help you close quickly, since your loan is pre-approved.

What loan program is best for your situation?

You'll need to consider all the available possible loan programs.

1.      Think about how long you plan to keep the loan. If you plan to keep your home for a long time, you may want to consider a fixed-rate loan. If you plan to sell your home in a few years, you may want to consider an adjustable-rate or balloon loan.
2.      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.
3.      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 loan originator who can help you find a loan program that best fits your short- and long-term plans. At Option Financial we have a wide selection of loan programs, some of which are not available at many other lenders.

All the research and preparation you've done to this point makes this step an easy one.

You can apply in three easy ways

     1.  Online - 24/7

     2.  Over the phone

     3.  or in person

Once your loan application has been received, the loan approval process starts immediately. This involves verifying your:

The loan approval process involves verifying you:

  • Credit history
  • Employment history
  • Assets including your bank accounts, stocks, mutual fund and retirement accounts
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.
  • 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 as additional documentation will be necessary.
  • 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 loan officer before applying for any other credit, including credit cards, personal loans or even with another mortgage company. 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.

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 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 the accuracy of the name and address on the loan documents.
  • Sign the loan documents. The closing agent 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.

There are many other steps throughout the process involving other parties to the transaction such as the appraiser, title company, home inspector, underwriters, etc. Your loan officer will help you understand the entire process and help to manage the expectations so that the entire experience is as easy and satisfactory as possible.

 

OPTION FINANCIAL, LLC
6551 Harrison Avenue, Cincinnati, OH  45247
Office:  (513) 598-5900
Fax:  (513) 598-5153
foberle@optionfinancial.com
Copyright © 2017 Option Financial, LLC (NMLS #2380)
A subsidiary of New Foundation Savings Bank (NMLS #487896)

Copyright © 2008 OPTION FINANCIAL, LLC

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