Loan Process

Organize Your Documents

A properly documented loan application makes your loan process go smoothly. This checklist will help you gather your paperwork.

  1. If you are salaried: provide W-2’s for the previous two years and one month of paystubs.  If you are self-employed, provide business and personal tax returns for the previous two years, including all schedules, and a YTD profit and loss statement.  (Note: provide copies of all requested documents.  Do not provide original documents.)
  2. Provide copies of your Driver’s License and Social Security Card.
  3. If you own rental property, provide signed rental agreements.
  4. Provide copies of bank account statements for the most recent three months, and the most recent statements for stock, mutual funds and IRA/401K accounts.  Include all pages of the statement (even if it is a blank page).
  5. If applicable, provide a copy of your most recent mortgage statement.
  6. If applicable, provide a copy of your Homeowner’s Insurance Declaration Page.
  7. If you are requesting a cash out refinance, provide a letter explaining how you will use the refinance proceeds.
  8. If applicable, provide a copy of your divorce decree and settlement agreement.
  9. If any borrower has filed bankruptcy, provide the Discharge Notice, Filing and Schedule of Creditors.
  10. If you are applying for a home equity line of credit or loan (second loan), also include your first mortgage note. (This should be with your closing loan documents.)

Get Qualified

Getting qualified before you apply for a loan will help you understand how much you can borrow.

When buying a home, you may be pre-qualified or pre-approved.  Pre-qualification is not as useful as pre-approval.  Pre-approval requires a more thorough 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 by a mortgage specialist at Realnet Lending Group 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.

Shop Loan Programs and Rates

What loan program is best for your situation?  Part of our personal touch at Realnet Lending Group is to make sure your loan program is right for your current financial situation.   Whether you are a first time home buyer or seasoned investor, we want to make sure you are comfortable with the payment and program we offer you.

Lenders offer many different loan options:

  1. 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.
  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.  The mortgage specialists at Realnet Lending Group can help you find a loan program that best fits your short- and long-term plans.

Obtain Loan Approval

Once your loan application is received, we 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

While you’re looking for home financing, you may be tempted to take certain actions that seem harmless enough—but which may adversely affect the loan approval process.  In particular, we recommend that you:

  • 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.
  • Don’t change jobs. Any required probation period would have to be completed before income from the new job would be considered for loan qualifying.
  • Do not make any major purchases. Do not buy a car, furniture or another house till your loan is closed.  Such purchases will significantly increase your monthly obligations, possibly to the point that you won’t qualify for a loan or have enough funds on hand to meet closing costs.
  • Anything that causes your debts to increase might have an adverse affect on your current application.
  • Don’t try to consolidate bills without informing your lender first.  Your mortgage specialist may tell you that this step isn’t necessary to qualify for your loan.
  • Don’t move assets from one bank account to another. Such transfers show up as new accounts for which you’ll have to disclose and document the source, complicating the application process. 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.
  • Do not apply 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.
  • Don’t pack or ship information you’ll need for the loan application. You’ll need to have important papers (W-2 forms, tax returns, etc.) on hand at all times. If they aren’t available and you must obtain duplicates, the wait could stall the closing date on your transaction.

Close the Loan

After your loan is approved, you will be required to sign the final loan documents.  This normally takes place in the presence of a notary public.  Each closing is unique and procedures can vary from state to state.  Please make sure you have read all documents prior to your closing.  Be prepared to:

  • For a purchase, bring a cashiers check for your down payment and closing costs.  Personal checks are 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.