Southern California Real Estate by Phil McCollum

The Lending Process...

Understanding the 10-Steps of the Lending Process

Listed below are the 10 steps of the lending process.

Step 1 - The Loan Application

This is where the loan process begins. Your loan officer will gather as much information as necessary and fill out your loan application with you. Complete and accurate information at this point will save a lot of time and avoid potential problems later on. Some of the things you may need are employment histories, tax records, banking and debt information.

Step 2 - The Credit Report

Much of the information gathered on the loan application will now be verified and cross-checked by an approved accredited reporting repository and a credit report will be issued.

Step 3 - The Appraisal

An appraisal is done to determine the approximate value of the property you wish to buy. It is on this value which your loan amount is based.

Step 4 - Loan Processing

The next step is to gather all the information thus far; the credit report, loan application, and appraisal, ten assemble it into an orderly package. If any information is missing, the loan officer will contact you or the necessary agency so that the loan package may continue processing without delay. The loan is then submitted to underwriting.

Step 5 - Underwriting

The underwriter will review the loan package and if he feels the loan is acceptable will grant loan approval. Very often loan approval will come with conditions that must be met. These conditions may include: termite reports, additional banking information, and/or signatures on documents.

Step 6 - Mortgage Insurance Company

In most cases when the buyers put down less than 20%, and after the loan receives the underwriter's tentative approval, it is sent to a mortgage insurance company (excluding FHA and VA loans). This means that the loan must be insurable before the lender will give you the loan.

Step 7 - Loan Documents

After all the conditions have been met and the loan is insured, the loan documents are ordered. They are your promise to repay the loan under pre-agreed terms and conditions.

Step 8 - Documents to Escrow

The loan documents are then sent to an escrow company where they are reviewed, the fees are calculated, and the documents are held waiting for your signature.

Step 9 - Funding

The documents are then sent back to the mortgage company where a check is drawn on your behalf.

Step 10 - Recording

The final step is to have your check and the deed of trust sent to a title company where they will record the deed for you. Then, your transaction will be completed and you can move into your new home!

Lenders

Catherine Coy
Watermark Capital
714-849-9040

Michael Cordova
Milestone Mortgage
310-732-0011
http://www.milestonemtg.com/teamcordova/

David McClintock
Firstline Mortgage
310-901-0901
4195 Viking Way Ste 160
Long Beach CA 90808

Tiffany Lee
Infinity Capital Funding
562-630-9060

Steve Shaw
562-453-5202
2135 N Bellflower Blvd
Long Beach CA 90815

What Data Will You Need?

When you sit down with a lender, in order to get pre-approved you will need to provide some details of your finances.

Identification

You may be asked for a copy of your driver's license or social security card.

Employment

Proof that you have a job, or are self-employed, will be required. Two copies of recent paycheck stubs may be requested.

Lenders prefer that you have demonstrated employment stability for the past two years. Therefore, you may be asked to provide W-2 statements from the previous two years. If self-employed, you may be asked for copies of your 1040 tax forms instead.

Source of Funds

Lenders will want to know that you have some readily available cash in order to cover the down payment and closing costs.

You may be asked for two months of bank statements to show that you have cash, and that it has been available for two months or longer. This is their way of checking whether you have borrowed money recently to cover your down payment.

If any portion of your down payment will be obtained by a gift, you will need a gift letter to document it.

Miscellaneous

You may be asked for an explanation of any derogatory items on your credit report.

Summary

By having your financial documentation available when you meet with your lender, they will be able to give you a pre-approval instead of the "pre-qualification". Pre-approval requires that they have reviewed your financial information, deemed it acceptable, and are stating a willingness to loan you money. Pre-qualification is an empty promise that means nothing.

Phil McCollum realtor in Southern California

Phil McCollum's Real Estate Information Site

Phil McCollum realtor in Southern California contact info ==>562.225.5234

Serving the communities of the South Bay and Long Beach, including Rolling Hills, Rolling Hills Estates, Palos Verdes Estates, Rancho Palos Verdes, Torrance, San Pedro, Carson, Hermosa Beach, Redondo Beach, Manhattan Beach, Long Beach, Lakewood, and Signal Hill.

Broker/Agent does not guarantee the accuracy of the square footage, lot size or other information concerning the conditions or features of properties provided by the seller or obtained from Public Records or other sources as presented in this website. Interested parties are advised to independently verify the accuracy of all information through personal inspection and with appropriate professionals. Information herein deemed reliable but not guaranteed.