Mortgages Made Simple with Rick Gundzik

Wednesday, August 24, 2005
The Loan Process - What to expect
You have decided to buy a home, but now comes the awful part; being approved for a loan. Actually, it's not as bad as you may think. It is actually quite simple.

First things first, find a reputable mortgage company. They should have some type of track record. Make sure they have been in business at least 5 years. This ensures they aren't a fly by night refinance company who has never done a purchase loan.

The loan officer should come out to your house. If he says he's to busy, he'll be too busy to return your phone calls too. A loan officer should ask your intentions, are you planning to move in 3 years, will you stay here forever? This can help determine if you should get a 30 year fixed rate loan or an adjustabe loan.

Next a loan officer needs to determine how much money you will be putting down on your new home. If you haven't saved a lot of money you may need a Zero down loan program.

At this point a loan officer needs to determine how much you qualify for based on your monthly income and any expenses you have such as a car payment, credit cards etc.

Using this information the loan officer will be able to prequalify you for a particular purchase price.

The loan officer will ask you to provide certain documentation this will include current paystubs, W2s, and 2 months bank statements. Keep in mind this is the typical documentation. Depending on your situation you may need to provide additional information if you're self-employed, receive a pension, etc.

But don't worry an experienced loan officer will gather all your information and find a loan to fit your needs.

Lastly, always expect one bad phone call. On home loans, something usually pops up, maybe a collection account you got when you were in college, your dream home has termites, the appraisal came in low, etc. Take a deep breath, relax, be honest with your loan officer and they will help you solve the problem.

Please contact us with any questions at questions@pacificresidential.com
posted by Pac Res @ 5:10 PM   0 comments

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