LOAN APPLICATION PROCESS
Are you wondering ... what happens during the loan process? What can I expect?
Please read the information below and use it as a guideline throughout your real estate transaction. Be informed! Learn about the loan application process.
| What information do you typically need when you complete a loan application? Read here:
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1)
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W-2 (2-years) &
Current Pay Stubs, Self-Employment or 1099 - Last 2 years tax
returns
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2) |
Landlord name and
telephone number/contact information - Last 2 years
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3) |
Employer name, address and telephone number - Last 2
years
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4) |
Asset
Information - Past 2 month's statements where your funds to close
escrow are
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5) |
Information on
Stocks/ Bonds/401K, other investments, etc.
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6) |
Name and telephone
number of Realtor
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7) |
Name and telephone
number of Escrow
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NOTE: |
The above is for
fully documented loans. Reduced documentation and stated income loan
requirements vary. Ask your lender or loan agent for complete details.
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| The steps for your home loan - from application to close of escrow
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1)
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Pre-qualification/
Pre-approval (Credit Report Run)
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2) |
Formal Loan
Application Taken
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3) |
Escrow and Title
Ordered
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4) |
Appraisal
Ordered
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5) |
Income and Asset
Information Verified
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6) |
Complete Loan Package
Submitted to Underwriter
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7) |
Loan
Approved
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8) |
Obtain and Forward to
Underwriter any additional items that may be required
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9) |
Interest Rate
Locked
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10) |
Loan Documents
Ordered and Sent To Escrow
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11) |
Loan Documents Signed
by Borrower(s)
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12) |
Final Pre-Closing
Conditions Sent To Lender
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13) |
Loan Funds Wired to
Title
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14) |
Loan and Grant
Deed Record, Close of Escrow
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| Estimating your monthly home loan payment |
|
PRINCIPAL AND
INTEREST
PAYMENT TABLE |
| Your monthly payment is the sum of four items - the principal on the loan (P), the
interest on the loan (I), property taxes (T), and homeowner's insurance
(I) - and is commonly referred to as PITI. To predict your monthly payment for a 30 year fixed rate loan, use
the following table to determine the principal and interest part of the
payment. Simply divide the loan amount by 1,000 and then multiply that
figure by the appropriate interest rate factor from the table below. To
that sum add 1/12th the amount of your yearly taxes and 1/12th the amount
of your yearly insurance premium. This will give you your PITI
payment. |
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If your interest
is: |
Your PI factor
is:
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6.00% |
6.00
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6.50% |
6.32
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7.00% |
6.65
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7.50% |
6.99
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8.00% |
7.34
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8.50% |
7.69
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9.00% |
8.05
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9.50% |
8.41
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10.00% |
8.78
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10.50% |
9.15
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11.00% |
9.52
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11.50% |
9.90
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For example: If your mortgage loan amount is
$200,000 and your interest rate is 7.0%, you would
multiply 200 by 6.65 resulting in a value of
$1330.00 Add your monthly insurance premium (approximately $25 - $75 per
month) and your property taxes (approximately your purchase price x 1.25%
/12) to your principal and interest. This is your estimated monthly
payment (note: this does not include homeowner's association dues).
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