Loan Process
The loan approval process typically begins with an initial interview where you will meet with a Fairway Mortgage Corp.
loan professional with and discuss your desires. You will need to bring information to verify your income and long-term debts.
Often people prefer to meet with us before house hunting to determine in advance what price range they can realistically afford and the mortgage amount for which they can qualify. This step is called prequalification and can save you considerable time and trouble by making certain you are looking in the correct price range.
Better yet, is to go the extra steps and be pre-approved.
Getting a loan can be confusing but following these 6 steps simplifies your loan process.
Organize Your Documents
Having these items on hand when you meet with us will help speed up the application process. During the meeting you will be pre-qualified for a home loan within minutes and we will further discuss any questions you may have and your options. There is no fee for this pre-qualification process. For purchasing or refinancing your home/rental property:
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If you are salaried: provide two years W-2 and one month of pay stubs OR if you are
self-employed: provide two years tax returns and a YTD profit and loss statement.
- If you own rental property, please provide rental agreements and two years tax returns.
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To speed up the process and verify assets, please provide your last 3 months bank statements for each of your checking, savings & investment
(i.e. stock brokerage, IRA/401K) accounts .
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If you are requesting a cash-out refinance, please provide a letter explaining what you plan to do with the proceeds.
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A copy of divorce decree, if applicable.
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If you are NOT a US citizen, please provide us with a copy of your green card (front & back), or if you are NOT a permanent resident, please provide us with your H-1 or L-1 visa.
If you're applying for a home equity loan, please provide a copy of your first mortgage note. This will normally be found in your closing loan documents for your first mortgage.
- If you are salaried: provide two years W-2 and one month of paystubs OR if you are self-employed: provide two years tax returns and a YTD profit and loss statement.
- If you own rental property, please provide rental agreements and two years tax returns.
- Please provide a copy of the note on your first mortgage. This will normally be found in your closing loan documents.
- Please provide a signed letter explaining what you plan to do with the proceeds.
- Provide a copy of divorce decree if applicable.
- If you are NOT a US citizen, provide us with a copy of your green card (front & back), or if you are NOT a permanent resident provide us with your H-1 or L-1 visa.
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Get Pre-qualified / Pre-Approved
Getting pre-qualified or pre-approved before you apply for a loan can help you understand how much you can borrow.
When buying a house, you may get pre-qualified or pre-approved. You can typically get pre-qualified over the phone or on the Internet in a few minutes. A pre-qualification is not as beneficial as a pre-approval where you have to go through a more rigorous process which includes verification of your credit, income, assets and liabilities.
It is highly recommended that you get pre-approved before you start looking for a house.
This will help you:
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Find out the maximum house you can buy, so you don't waste time looking for properties you can not afford
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Allowing you to close quickly since your loan is already approved.
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Puts you in a stronger position when you are negotiating with the seller, because the seller knows that your loan is already approved.
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Helps you close quickly, since your loan is already approved.
Complete Your Online Application Now!
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Compare Loan Programs & Rates
At the time you apply for a loan, we'll discuss with you available mortgage programs & pricing.
To make a more informed decision regarding which program is more beneficial to you, you need to:
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Think about how long you plan to keep the loan. If you plan to sell the house or refinance in a few years, you may want to consider an
adjustable or balloon loan. On the other hand, if you plan to keep the house for a longer time, you may want to look at fixed
loans. You need to pick the loan program best suited to your lifestyle and future plans.
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Understand the relationship between rates and points. Each point is equal to one percent of the loan. So for example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower the rate you will get. Points (one point equals 1% of the loan amount) are considered to be prepaid interest and are tax deductible. The more points you pay, the lower the rate you will get.
- Comparing for a loan can be difficult. With so many programs from which to chose, each of which have different rates, points and fees, its hard to figure out which program is best for you. That's where an experienced loan officer can help you make a decision that's best for you.
- Keep an open mind regarding pricing options and remember:
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The Total Cost of the Loan is What Matters Most |
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Apply for a Loan
Once you've gathered all your documents and have spoken with us regarding loan programs and pricing options, it's time to apply for the loan.
At the time of application, we will present you with a completed loan application and preliminary loan disclosure documentation for your signature, as required by Federal Law.
You've made no permanent commitment here; you've only agreed to investigate whether you can qualify for your chosen program.
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Obtain Loan Approval
The loan approval process will be started immediately upon receipt of your signed loan application and preliminary loan documents.
This process involves verifying your credit history, employment history, assets (including your bank and investment accounts), and the value of the property in question. Based on your specific situation, additional documents or verifications may be required.
Based on your specific situation, additional documents or verifications may be required. To improve your chances of getting a loan approval:
To improve your chances of getting a loan approval, be sure to:
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Fill out the loan application completely.
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Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
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Continue to make on-time payments on all credit accounts, even if you plan to pay off credit accounts in a refinance.
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Avoid making any major purchases. Do not buy a car, furniture or another house till your loan is closed. Anything that causes your debts to increase might have an adverse affect on your current application.
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Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us.
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Do not go out of town around the closing date. You will need to be available for signing documents in escrow. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
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Close the Loan
After your loan is fully approved and loan conditions have been met, you sign the final loan documents.
Signing is typically done at an escrow or title company. Be prepared to:
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Bring a cashiers check for your down payment and closing costs (if a purchase). Personal checks are not accepted.
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Review the final loan documents. Make sure the interest rate and loan terms are what you expect and that the name and address on the loan documents are accurate.
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Sign the loan documents.
Your loan will normally close shortly after you have signed the loan documents. On owner occupied refinance and home equity loan transactions, federal law requires 3 days for you to review the documents before your loan transaction can close.
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