An Overview of the Loan Process

Organize Your Documents

A properly documented loan application makes your loan process go smoothly. This checklist will help you gather your paperwork.

1. Complete and sign the residential loan application, Form 1003, and the attached loan info sheet, credit authorization and fair lending notice. Page 5 of the application is a continuation page in case you need additional space for your assets or liabilities. If you make a mistake while filling out the application cross it out, and make a change. Do NOT use whiteout.
2. If you are salaried: provide W-2's for the previous year and the most recent paystubs covering a full 30 day period.  If you are self-employed, provide tax returns for the previous two years, including all schedules.  (Note: provide copies of all requested documents. Do not provide original documents.)
3. If you own rental property, provide recent rental agreements and tax returns for the previous two years, including all schedules.
4. Assets: Provide entire bank statements for the most recent two months including all pages, and most recent monthly/quarterly statements, including all pages, for stock, mutual funds and all retirement accounts.
5. If applicable, provide a complete copy of your divorce decree.
6. If you are NOT a US citizen, provide a copy of your green card (front & back). If you are NOT a permanent resident provide a copy of your H-1 or L-1 visa.
7. If any borrower has filed bankruptcy, provide the Discharge Notice, Filing and Schedule of Creditors.

 Get Qualified

Getting qualified before you apply for a loan can help you understand how much you can borrow and the right mortgage program for you.

When buying a home it is beneficail to become pre-approved.  You can generally obtain a pre-approval in just a short time frame.  The Pre-approval process includes verification of your credit, income, assets and liabilities.  It is highly recommended that you be pre-approved before you start looking for a home.

The pre-approval process will:

1. Give you the confidence that you are looking for a property in the correct price range.
2. Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved.
3. Help you determine which mortgage program is right for you.

 Apply For a Loan

The following are each methods to begin the application process:

    1.   Click on the Apply Now link on the main page of this website.

    2.   Contact Mike Banes toll free at 1-866-393-0925.

    3.   Email Mike Banes at mike@mikebanes.com

 Obtain Loan Approval

Once your loan application has been received, I will start the loan approval process immediately. This involves verifying your:

• Credit history
• Employment history
• Assets including your bank accounts, stocks, mutual fund and retirement accounts
• Property value
• Based on your specific situation, additional documents or verifications may be required.

To improve your chances of getting a loan approval:

• Fill out the loan application completely.
• 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.
• Do not make any major purchases. Do not buy a car, furniture or another house until your loan is closed.
• Anything that causes your debts to increase might have an adverse affect on your current application.
• 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 me.
• Plan your schedule accordingly so that you can be at the closing.  If you will be out of town and will need someone to sign the closing documents on your behalf, you will need to start the Power of Attorney process based on the requirements of the lender and the title company.  Make a note to start this process well in advance of the closing date.
• Notify me before applying for any other credit, including credit cards, personal loans or even with another mortgage company. Some loan programs have strict guidelines regarding your credit score. Credit inquiries may lower your credit score and may have an adverse affect on your loan approval.

Close the Loan

After your loan is approved, you will be required to sign the final loan documents. This will normally take place in the presence of a title company escrow officer. Be prepared to:

• Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally NOT accepted.  The cashiers check should be made payable to the title company the closing will take place in.
• Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify the accuracy of the name and address on the loan documents.
• Sign the loan documents. The title company escrow officer will require that you have your picture ID with you.
• On a purchase closing, your loan will normally fund the same day, shortly after you have signed the loan documents.  For refinances on owner occupied properties, Federal law requires a 3 day waiting period after the closing before the loan will fund.