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| FIVE EASY
STEPS TO CLOSE YOUR LOAN! |
| 1. Organize your documents |
| If you are buying or refinancing a home
- If you are salaried:
provide two years W-2 and one month of paystubs OR
if you are self-employed: provide
two years tax returns and a YTD profit and loss statement.
- If you own rental property, please provide
rental agreements and two years tax returns.
- If you wish to speed up the approval
process, please also provide three months bank statements for
each bank, stock and mutual fund account.
- Provide recent copies of any stock brokerage
or IRA/401K accounts that you may have.
- If you are requesting a cash out refinance
please provide a letter explaining what you plan to do with the
proceeds.
- Provide a copy of divorce decree if applicable.
- If you are NOT a US citizen, provide
us with a copy of your green card (front & back) or, if you
are NOT a permanent resident provide us with your H-1 or L-1 Visa.
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| 2. Get Qualified
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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 or pre-approved.
You can typically get pre-qualified over the phone or on the Internet
in a few minutes. A pre-qualification is not as beneficial as a
pre-approval where you have to go through a more rigorous process
which includes verification of your credit, income, assets and liabilities.
It is highly recommended that you get pre-approved before you start
looking for a house. This will help you:
- Find out the maximum house you can buy,
so you don't waste time looking for properties you cannot afford.
- Puts you in a stronger position when
you are negotiating with the seller because the seller knows that
your loan is already approved.
- Helps you close quickly, since your loan
is already approved.
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| 3. Shop loan programs
and rates |
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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
or balloon 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.
- Compare different programs.
Shopping for a loan can be difficult. With so many programs to
choose from, each of which has different rates, points and fees,
it's hard to figure out which program is best for you. That's
where an experienced loan officer can help you make a decision
that's best for you.
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| 4. Obtain Loan Approval
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Once your loan application has been received
we will 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
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| 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 until 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.
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| 5. Close the Loan
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After your loan is approved, you will be required
to sign the final loan documents. This will normally take place
in front 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 that the name and address on the loan documents are
accurate.
- Sign the loan documents.
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 3 days to review the documents before
your loan transaction can close. |
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| Metro Atlantic Capital
88 New Dorp Plaza- Suite 203
Staten Island, NY 10306
Phone: 718-690-3509
Toll Free: 866-659-5405
Fax: 718-305-1673
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