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As might be expected, the first step
in obtaining home loan financing is to fill out the loan application (also called
a "Fannie Mae 1003", or "Uniform Residential Loan Application").
Our experienced loan officers will be happy to assist you in filling out the loan
application if you should have any questions. We will make an appointment to meet
with you at your convenience if you desire. Whether you choose to meet with
us or fill in our online
application, you will eventually
need to provide us with some personal and financial information (click here for a list of what you need to provide). If you are unable to provide some
of the required documents, you can provide them to us at a later date before your
final approval.
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Do I have to meet
in your office?
No! It is possible to complete the
loan process without attending a meeting in our office. This can be done by
doing one of the following: filling out our online application form
on our site, we will fill it out for you by telephone, you can fax your application
to us after you print it out, or you can mail your application to us if you wish.
When we do talk to you, we will discuss
different possible loan programs available to you that might best meet your needs,
the interest rates available, and your financial and property qualifications for
the loan program you've chosen.
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After I fill out
the application, what happens next?
Once you have chosen a loan program
and interest rate, the application has been filled out and you have provided us with
the necessary information, we will then send out verification forms to verify
your employment history and bank account information, obtain your credit report,
order your preliminary title report from the title company and order your appraisal.
Once this information is returned to us, we will compile your loan documents and
submit them to the underwriter for final approval.
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What does it mean
when my loan is approved "with conditions?"
Your loan may be approved as submitted
or with condition. If there are conditions on the loan in order for it to be approved
as submitted, we will work with you to satisfy these conditions. Conditions
might include an explanation letter of some sort, copies of investment documents,
copies of divorce papers, or any number of things that may help clarify your qualifications
for the loan. It is important to understand that no material changes can take place
with your loan after approval and prior to close of escrow, ie, changes in assets
or employment.
After the loan conditions are met
(if any) and the loan is approved, the necessary documents are prepared for closing.
The lender will draw up the necessary documents and then will send you to a title
or escrow company near your home to be signed by you. Your escrow officer will
contact you to arrange for an appointment for you to come into the escrow office
to sign your loan documents.
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What does "Close
Escrow" mean?
The task of closing the loan is normally
the responsibility of the escrow officer or lender. This person or company
is responsible for gathering the necessary documents (deed of trust, promissory note,
etc.) and making sure all documents are signed. Following the lenders instructions,
the escrow officer or lender then calculates the various prorations, charges and
adjustments (interest on your old loan, interest on your new loan, money for impound
accounts for taxes and insurance, etc.), makes sure all of the funds are deposited
(if any) and provides you with a settlement statement showing all of the costs involved
in the loan. Whoever handles the escrow responsibilities also makes sure that all
of the parties involved in the loan process are paid after the loan funds. Your loan
will then "close escrow" and your new loan will be recorded.
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What is a "Right
of Rescission?"
After you sign the loan papers, they
are sent to the lenders funding department where they do a final check to see that
everything is in order. On a refinance loan, for your primary residence, there
is a 3-day right of rescission period. This means that you have 3 days from
the day you sign the papers to change your mind about following through with the
loan. If you have not exercised your right to rescind during the 3-day right
of rescission period, the funds are released. The loan funds are then distributed
to the proper parties and the documents are recorded at the county recorders office.
The loan is done! NOTE: There is no right of rescission on a purchase or a
refinance for a second home on rental property..
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