*Courtesy of Happy Chang of Princeton Capital*
What to Expect in the Loan Process
Thank you for selecting us for your home financing needs. We appreciate your trust in allowing us to guide you through this process.
You have quite possibly heard stories from the media or your friends about how hard it is to get a loan. Most of what you’ve heard is true. After the financial meltdown, there was more required paperwork and more rules than ever before. In this lending environment, all lenders must follow the new rules, so even if the last time you financed a home it was super easy, it will be different this time, regardless of which lender you use. Princeton Capital, however, does as much as possible to ease the burden on you during the process.
Remember we are always here to help – Please let us know if you have ANY questions.
Step 1 – ¬Getting Ready to Submit for Loan Approval
• We will send you a ‘Needs Checklist’ as soon as we open escrow. Please make sure to compile the requested documentation quickly and completely. Unfortunately, “close enough” is no longer good enough. If we ask for all pages, we really do need ALL PAGES.
• At the same time, we will request your disclosures. These are the required, government forms that you must receive and sign before we can submit your loan.
• Once the disclosures are ready, we will send them to you via email (or have them in our office for you to pick up), along with a prompt for you to pay for your appraisal (via credit card). It is VERY important that you pay for and schedule the appraisal AS SOON AS POSSIBLE to stay within the confines of our rate lock and/or purchase contract.
• Please sign and return the disclosures that we email to you ASAP. You will also receive a copy in the mail. NO ACTION IS NECESSARY on the disclosure package that you receive at home.
• Once we have the appraisal report back you will receive a copy and a form to sign and send back to us. At this point the loan should be ready to submit. We will let you know if we need anything else.
Step 2 – Loan Approval
• Once the loan is approved (anywhere from 1-¬4 days after submission), we will receive notice of any additional items needed by Underwriting. These are called “prior to loan document conditions (PTD’s)”. We need to submit the “PTDs” for sign off before we can send loan documents to escrow for you to sign. If any of these items are needed from you, we will let you know.
• Once Underwriting has received all needed documents and signed off on your file, we will order loan documents.
• Within a few days your loan documents will be emailed to escrow and they will contact you to schedule your signing. You can elect to have them come to you or you can go into the escrow office to sign. They will provide you with a form that has specific instructions on how to wire the rest of your closing costs/settlement monies (if applicable). Please do this the following business day.
• Once your funds are verified at escrow and any “prior to funding” items in and signed off we will wire the loan funds.
• Title will record the deed the following day concluding your loan process.
¬If this is a purchase, congratulations get your keys! If a refinance – your old mortgage is paid off and your savings start!
How Long Will All This Take?
The total turn times from start of application to close are anywhere from 20-¬25 days for purchases and 30-¬40 days for a refinances. Speed of submitting and completeness of all the documents needed is essential to meeting these time frames.
During the loan process please do not:
• Make any major purchases (car, furniture or start home improvements).
• Apply for any new credit until your loan process is complete.
• Close any credit card accounts
• Dispute any credit card accounts
• Run up credit card balances
• Co¬sign a loan for anyone
• Close any bank accounts
• Change your source of closing funds
• Change jobs – unless you have already discussed the change with us
• Send or scan actual bank statements (or choose actual statements option when online) not summaries or “snapshots”.
• Let us know if you plan to be out of town before close of escrow
• Inform us of any change in employment, income or assets status
• Continue living at your current address
• Continue making mortgage payments
• Stay current on all existing accounts
Please be aware that your credit report and FICO score are key pieces to determining your interest rate. Your credit report is checked again on the day we fund your loan. If there are new credit accounts or inquiries your rate may increase or the loan may be delayed or denied.
Equally important is “sourcing” funds and deposits into your bank accounts. Lenders are very focused on “paper trails” of any large (non¬-payroll) deposits. Undocumented large deposits can nullify using an account for down payment or closing costs.
Here’s the scoop: ¬money for down payments and closing costs cannot be borrowed, and it must be shown to be legitimate. As licensed mortgage loan originators, we are tasked with watching for any type of fraud or money laundering, and bound by law to report it. So when we ask for yet another “paper trail” of a deposit, please understand we are doing what is absolutely necessary to close the loan.
Tel. (925) 997-0949
Princeton Capital is a Residential Mortgage Lender, and an RMR Financial company, licensed by the California Department of Business Oversight under the California Residential Mortgage Lending Act