How can a loan officer help me?

Seven Main Roles of Your Loan Officer

    • Educates you about the mortgage lending process

    • Learns about your financial goals and needs of your new mortgage

    • Creates personalized solutions based on your goals and needs

    • Communicates with other professional affiliates involved in the purchasing or refinance process

    • Consistently watches the market to lock in your rate when you deem necessary

    • Solves any problems that may arise

    • Ensures all documentation is gathered for the lender to issue a loan approval

Deciding How Much House You Can Afford

Everyone is different when it comes to their finances and we get that. That is why we are here to make sure we align what you want to spend monthly to a home purchase price. Our goal is to make sure you are comfortable with regards to how much you can afford. Most lenders will allow you to borrow up to 45% of your gross monthly income and some people are not comfortable spending that much. As we gather information from you on our Mortgage Planning Analysis we can structure a monthly payment, and eventually a sales price, that makes sense for you. In the meantime, you can use the mortgage calculator below to estimate approximate monthly payments based on how much down payment you have. Once you contact us we will be able to run much more accurate figures for you.

Pre-Qualification vs. Pre-Approval

There is a misconception within the marketplace and many buyers will use the following terms interchangeably at some point throughout their home buying process; pre-qualification and pre-approval. In fact, the two terms are quite different and a brief definition should help.

Pre-qualification is having a brief conversation, whether in person or via phone with a loan officer to discuss income, assets, credit and any other individual specifics in regards to your financing.

Pre-approval takes the pre-qualification stage one step further in that the loan officer actually receives all of your pertinent financial documentation such as, but not limited to; tax returns, bank statements, pay stubs, credit reports, etc. Once the loan officer has reviewed the documentation we will typically run your individual scenario through what is known as automated underwriting. Most lenders will go off of what is on these automated underwriting findings. That being said, having a full pre-approval with automated underwriting findings is going to be a much stronger offer than the pre-qualification in the eyes of listing agents and sellers alike. We make sure that our clients are making offers with a pre-approval letter in hand so they have the best chances of getting their offer accepted.

The Mortgage Lending Process

The mortgage lending process can be scary and our goal is to make it less stressful. We strive to deliver an honest, knowledge based mortgage lending experience.

Pre-qualification

We gather information in person or via phone in regards to employment, income, assets, credit, and other personal specifics, typically through a brief 10 to 15 minute phone conversation.

Pre-approval

A list of financial documents needed is sent to you. These typically include tax returns, bank statements, paystubs, and drivers licenses.
Once we receive your documentation we begin to give you scenarios through our mortgage coach software program. You then decide on a loan scenario that suits your goals and needs.

 

Searching for & Making Offers on Properties

(This is the fun part from what we hear…)

You begin searching for and making offers on properties with your Agent.

We make sure your Agent has a pre-approval letter from us ready to submit with offers you make.

Your offer gets accepted on your new home!!!

Escrow is Opened (You are now “In Escrow”)

We receive the purchase contract signed by everyone from your Agent.

Together we look at the scenario we had chosen previously and see where interest rates are and lock a rate for you.

Processing

Our team and the lender will draft initial disclosures for you to sign based on the purchase price and projected loan amount with your down payment. We gather any updated documents that we need from you (It may have been months since we first spoke and your documents may be outdated). You will gather a homeowners’ insurance quote for the property (We have a list of insurance agents that will knock your socks off, don’t be afraid to ask for a referral). We will order an appraisal on the property to make sure you are not overpaying for the property.

Underwriting / Conditional Approval

Your file (All the pertinent documents) will be sent to the lender to be underwritten. An underwriter, who is an actual physical human being like you and me will go through the documents with a fine tooth comb to make sure we didn’t forget anything. The underwriter will issue a conditional loan approval. Conditions may mean an updated pay stub, a new bank statement or the appraisal if that has not come back yet.

Final Approval / Clear to Close

Once we send back all of the conditions that the underwriter has requested and they are signed off we are then issued what is called the "Clear to Close." We are then able to order your final loan documents. At some point between sending back the underwriters conditions and getting the clear to close, the lender will send out what is known as the Closing Disclosure or CD. This Closing Disclosure has all of the pertinent information about the transaction but may still be changed if there are errors. Once you acknowledge receipt of the CD we must then wait three days to sign your final loan documents.

Final Loan Document Signing

This is the exciting part of the loan process! You will sign your final loan documents. Make sure you have a current form of identification for the notary.

Funding/Recording

Once the final loan documents are sent back to the lender for review they will be assigned to a funder. Typically from signing the final documents to funding the new mortgage loan takes about 2-3 days. Once the loan is funded your Deed of Trust will be recorded with the County Recorders office and you are officially the new owner...congratulations!

There are many types of mortgage programs available. The right type of loan for you depends upon several factors.

-Your current financial situation

-How you expect your finances to change

-How long you intend to keep your home

-How comfortable you are with the possibility that your mortgage payment may rise in the future

Please contact one of our experienced mortgage advisors, or call us at (949) 720-1616

Adjustable Rate Mortgage (ARM)

A mortgage in which the interest rate is fixed for a specified period of time, and then adjusts after the fixed period expires (payment could then increase or decrease). For example, for a 5/1 ARM, the rate will stay the same for the first 5 years – and will then adjust in year 6. ARM products generally range from 3, 5, 7 and 10 years, and are an alternative to a fixed rate mortgage. These products typically offer lower interest rates than you’d be able to obtain with a fixed rate mortgage.

FHA Loan

Federal Housing Administration (FHA) home loans were created to make it easier for home owners to qualify for a loan – whether you are buying a home or refinancing your mortgage. They are also ideal for people who desire a secure government-insured home loan, and need to finance more that 80% of their home value. With an FHA mortgage, you can buy a home with a down payment as little as 3.5% and lower credit scores are OK.

Fixed Rates Mortgage

A mortgage in which the interest rate does not change for the life of the loan. These are available for 30 and 15 year terms, and the payment amount will remain fixed throughout the term of the loan.

Jumbo Loan

If you require a home loan that’s over the conforming limit of in your area you will probably need a Jumbo mortgage. Jumbo loans offer the same flexibility as conforming loans (fixed and ARM products), however they are not eligible for purchase by Fannie Mae or Freddie Mac and must be sold in the secondary market. This means that the rates for Jumbo loans will be slightly higher than home loans with similar terms that are conforming loans. Jumbo loans are often referred to as non-conforming loans.

VA Loan

VA, or Veteran’s Affairs loan, is a specific loan program authorized by the US Dept. of Veterans’ Affairs to help veterans, active-duty service members and their families purchase a home. This loan option allows military families to qualify for a home loan with fewer restrictions, and little-to-no money down.

CLOSING COSTS

Closing costs are the actual expenses incurred in the origination of a new home loan or refinance. Some of the costs are related to your loan application, such as the expense of a credit report. Other fees are related to the house itself, such as the property appraisal. There are costs paid to the lender for processing your application, such as the loan origination fee.

Because different states have different fees and taxes that are a part of closing costs, please reach out to us and we can provide you with additional information on your exact scenario. We are happy to provide answers to your questions and we have Loan Consultants licensed in every state.