Thursday, January 12, 2012

Steps to Buying A Home: Mortgage Broker Bill Rayman Explains


1. Prequalify


Most sellers and real estate agents today prefer to have you become prequalified for a loan of a certain amount.  This means that your loan agent or broker reviews your income, debt service, credit score, and other relevant information and provides with you the amount that a lender will loan you in the current market.  By getting this information before you begin the search for your new home, you strengthen your bargaining position with the seller.  They know that if they accept your offer you can get the loan.


2. Applying For Your Mortgage


Applying for a home loan with Bill Rayman and Mortgage Capital Partners could not be easier.  Bill can take your application in person, over the phone, or you may complete the secure online application on this site.  You can also choose to fax  your completed application to 310-481-4859.
3. Processing Your Loan Application


This step is simply the process of verifying the information you provided during the prequalification process (although commonly we have you send these documents at the time of prequalification.)  Typically, we will ask for 3 items to verify these facts:
1. Your last 2 pay check stubs (a year-to-date P & L if self employed)
2. Your last 2 W-2 forms (personal and/or corporate returns will only be requested if needed)
3. You last 2 bank statements (checking, savings, investment, 401k, etc...)
We will also order your credit report, the appraisal on the property being financed. and a copy of your purchase contract.


4. Appraising Your Home


The appraiser will contact your Real Estate Agent if you are purchasing a new home or call you directly if you are refinancing, to set a time to view the inside of the property being financed. The appraiser will research the comparable homes that have sold recently in your area to determine the current market value of the property.  This information is then used by the bank's underwriter as an assurance that the amount they are lending is appropriate to the value of the property. 


5. Underwriting your loan


The bank must now make a final determination to pprove or reject the loan, and if approved, under what terms. If for any reason they are unable to approve your loan under the terms for which you have applied, they may counter offer with other terms.  . For example, if you applied for a 15 year fixed rate mortgage, but the Underwriter felt the larger payment would be overly taxing based on your other debts and as a function of your income, then they may offer a 30 year fixed rate mortgage instead.


6. Closing Your Mortgage


Your closing will commonly take place at the title company of your choice or at an location convenient to all parties.  Bill will  usually call you 24 hours prior to your closing to make certain everything has been properly coordinated between you, your Home Owners Insurance Agent, your Real Estate Agent (if applicable) and your title company

1 comment:

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