Loan Process Overview

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:

• Find out how much house you can afford, so you don't waste time looking for properties you can not afford.
• Puts you in a stronger position when you are negotiating with the seller, because the seller knows that your loan is already approved.
• Helps you close quickly, since your loan is already pre-approved.

Understand the relationship between rates and points. Points are considered to be prepaid interest and are tax deductible. Each point is equal to one percent of the loan. For example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower the rate you will get.

Deciding what loan program fits your needs best can be difficult. With so many programs to choose from, that's where an experienced 1st Republic loan officer can help you make a decision that is best for you.

• 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 us.
• Do not go out of town around the closing date.

1. Credit history
   Your Residential Mortgage Credit Report is ordered. Credit Data comes from three reporting agencies Equifax, Experian (TRW), and TransUnion.
2. Employment history (not required for no income check loan programs)
   Supporting documentation from independent parties must be obtained to verify your income and employment stability. This proof is usually obtained by sending out forms that must be completed by your employer. We must have supporting documents from your employer(s) covering the last 24 months. If you choose, you may provide us with a W-2 form for the past 2 years of employment and pay stubs from within the past 30 days.
3. Asset verification (not required for no income/ no asset check loan programs)
   Supporting documentation regarding your liquid assets must be obtained. Forms are usually sent out to banks or investment companies that hold your assets. If specified by the program guideline you may supply us with only one bank statement.
4. Property value
   An appraisal is ordered for the home you are buying or refinancing. The appraiser is independently employed as an outside vendor. The appraiser's report must comply with industry standards, which are issued by a wide assortment of agencies and regulators and our guidelines.

We will choose a Title Company, or your attorney in the case of purchase. They will search the quality of title to assure that there are no outstanding judgments or liens and they will order the survey of the property, if required. Your Attorney/Title Company will also obtain title insurance to protect you in the event that there might be any defects of title, which might not be recorded at the courthouse. Be prepared to:

• Bring a bank check for your down payment and closing costs if required.
• Personal checks are normally not accepted.
• Review the final loan documetns. Make sure the interest rate and loan ters are what you applied for. Also, verify the name and addresses on the loan documents are accurate.
  Sign the loan documents.

1. Completed loan application containing the following information:

• Name and address of your current employer and all previous employers for the past 2 years
• Your gross monthly income
• The names, addresses, and account numbers for all creditors and depository institutions (bank accounts, brokerage accounts, etc.)
• Your landlord's name, address for your current residence for the past 2 years and phone number (if you are presently renting)

2. Income (when applicable)

If you are salaried, please provide us with:

• Copies of your last 2 years tax returns signed and dated
• Copy of your 2 years W-2

If you are self-employed or commissioned borrower plese provide us with: (when applicable)

• Copies of your last 2 years tax returns signed and dated
• Copies of your last 2 years corporate and/or partnership returns signed and dated (if applicable)
• Year-to-date P&L and Balance Sheet prepared and signed by an accountant (if you are self-employed)

You also have to provide us with:

• ProOf of any other income (i.e., social security, retirement, note income, rental income, alimony and/or child support)
• Copy of divorce decree (if applicable). Last 12 months of cancelled checkes for all alimony payments received if used for income qualification

3. Assets (when applicable)

Please provide us with:

• Copies of 3 most recent bank statements for all current checkings & savings accounts. Copy of 1 most recent bank statement if qualifying for Golden Solution Program.
• Copies of any stock brokerate or IRA/401K accounts that you may have.
  

4. For a New Purchase

You will have to provide us with:

• Sales Contract - signed by both the buyers and sellers (when applicable)
• Earnest Money Check - copy of cancelled check given to seller's attorney
• Names and phone numbers of attorneys and realtors involved

5. For Refinance

You will have to provide us with:

• Deed
• Survey - an existing survey may save the cost and time of ordering a new one.
• Homeowners Insurance Policy - paid in full one year in advance from the closing date
• Title Insurance Policy - and legal description, from your last closing. Providing this can save time, and money. You may be able to receive a "re-issue rate".

6. Other

When applicable you will have to provide us with:

• Deposit for credit report and appraisal fee
• If you are not a US citizen, provide us with a copy of your green card (front and back), or if you are in the process of applying for permanent residency, please provide us with a copy of your INS application and letter from your attorney indicating the likelihood of approval
• Well & Septic - inspection report, when applicable.