The Loan Process
Step 1: Find out your buying power
The first step in obtaining a loan is to start the pre-approval application to determine how much a lender is willing to finance based on your specific criteria. It is important to create a housing budget before you begin looking, as affordability can vary for the lender.
Step 2: Apply for the IDEAL loan
Home loans can vary so align with your financial situation. Whether you are buying or refinancing, there are two (2) basic mortgage types: fixed rate and adjustable rate.
Then, there are several products including:
Conventional
FHA
FHA 203k
USDA
VA
Construction-to-Perm
Hard-money
Step 3: Begin underwriting process
Once your loan application has been received we will start the loan approval process immediately. Your loan processor will verify all of the information you have given. If any discrepancies are found, either the processor or your loan officer will troubleshoot to straighten them out.
This information includes:
Income/Employment Verification
Is your income sufficient to cover monthly payments?
Credit Check
Your credit report is reviewed to determine the type and terms of previous loans. Any lapses or delays in payment are considered and must be explained.
Asset + Retirement Accounts
Do you have the funds necessary to make the down payment and pay closing costs?
Property Appraisal
The property is appraised to determine market value.
Other Documentation
In some cases, additional documentation might be required before making a final determination regarding your loan approval such as child support, divorce decrees, etc.
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