The Loan Process

Whether you are planning on purchasing your first, second or last home, most home buyers like the security and convenience of being prequilified before searching for the home of their dreams. The process of getting a home mortgage loan can be one of life's most stressful experiences and it becomes less stressful if you have a good understanding of the finance process.

Loan Application

You will meet with a Loan Officer of Advanced Funding to complete an application. If you are anxious to have your loan approved without delays, you can help speed the loan process by knowing what information you'll need and having it available at the time of the applicaiton interview. See the "First Appointment Checklist" at the end of this section. This a great opportunity to ask questions and find more information about different programs.

Loan Processing

Starting with the information gathered from your loan application, your assigned Loan Processor will put together a package of documents showing your ability to qualify for the loan. This package will include a credit report, verifications of employment, verifications of deposit, verifications or rent or mortgage, a property appraisal, etc. Your Loan Processor works hand in hand with your Loan Officer to quickly and proficiently process your loan application.

Loan Submission and Approval

Once the Loan Processor has put the package together, your loan application and supporting documents will be submitted to a Loan Underwriter. The underwriter's job is to review your file to determine if your loan request can be approved. There are five major area that are evaluated. Every loan program has its own guidelines and the specific requirements vary from program to program.

Stable Income Versus Debt
Stable income is the income you receive from various sources which is steady and continuing. It should be sufficient to handle your new house payment and long-term obligations. Your income and obligations will be evaluated to see if they meet income ratio guidelines.
Assets
You need to have enough money for the down payment and closing costs and should also have some extra cash left for moving expenses, emergencies, etc. The money can come from various sources such as savings/checking accounts or the sale of assets (house, etc). Some programs will allow you to obtain assets through a gift.
Credit
Your credit history will be checked to see if you have met your monthly obligations in a timely manner. The previous 12 months are especially important. If you have had any credit problems, you should discuss them with the lender's representative. Some credit problems may have been caused by extenuating circumstances and a loan may still be granted.
Job Stability
Lenders likes to see that you have been in the same line of work (not necessarily the same job) for a stable amount of time. Time spent going to school can be counted if is is consistent with your current employment. If there are many gaps in your employment history, you will probably be asked to explain them.
Property
The property (house and land) is the security for the loan. An appraisal is used to determine the value and the condition of the property. Also taken into consideration is the amount of the loan in relationship to the value of the property. A lower loan-to-value ratio resulting from a larger down payment is generally regarding more favorably by the lender.
In order to make the loan approval decision, the underwriter will occasionally require additional information from you or make conditions that must be met prior to loan closing. When everything is in order, they will issue a loan approval.

Loan Closing

When the loan is approved, you and the seller can decide when you would like to close the sale. The lender will probably need at least forty-eight hour notice in order to prepare the legal documents. At closing, you will sign documents agreeing to the terms of repayment and the seller will convey the property to you.

When the sale is closed, you will receive a key... the one that will open the door to your new home.

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(801) 265-1177; Toll-free (888) 571-HOME; Fax (800) 409-9342