Getting a Real Estate Loan

• Organize your documents
  - (Salaried) 2 years of W-2s and 1 month of pay stubs
  - (Self-employed) 2 years of tax returns and Year-to-date profit and loss statement and current balance sheet
  - Rental property: rental agreements and 2 years of tax returns
  - Bank statements: 3 months for each bank, stock, and mutual fund
  - Divorce decree, if applicable
  - Additional documents may be required depending on your specific situation
• Get qualified
  - Pre-qualified: a quick method to determine the amount of loan you can be approved for. It is not a commitment to lend.
  - Pre-approved: an extensive process including verification of your credit, income, assets, and liabilities. We highly recommend that you get pre-approved because you will find out the maximum amount you can spend on a house. You will be in a stronger position to negotiate a price with the seller. You will be able to close the deal quicker.
• Shop for loan programs and rates
  - Consider how long you plan on keeping the house. Balloon mortgages may be better for short term loans. Fixed rate mortgages often favor long time home owners. Our loan officer can help you compare programs so you can choose the best program for you.
  - Understand the relationship between rates and points. One point is equal to one percent of the loan. The more points you pay down, the lower your rate will be.
• Improve your chances of getting your loan approved:
  - Fill out the loan application completely.
  - Respond promptly to requests for additional documents.
  - Do not increase your debt by making major purchases like a car or furniture. Anything that increases your debt may have an adverse affect on your current application.
  - Do not deposit or transfer money into your bank accounts unless it can be traced. Please contact us if you will be receiving monetary gifts from family or friends.
• Close the loan
  - Do not go on vacation around the closing date. We need to be able to contact you in case there are any last minute questions.
  - Bring a cashier's check for your down payment and closing costs.
  - Review the final loan documents.
  - Sign the loan documents.