Loan Process

The first step in obtaining a loan is determining how much you can borrow. If you’re buying a home, it’s essential to figure out how much house you can afford before you start looking.

 

Getting pre-approved for a loan is highly recommended. This process involves verifying your income, credit, assets, and liabilities. Pre-approval offers several advantages:
 

• Shop Smarter: Focus on properties within your price range.

• Stronger Negotiation Position: Sellers are more likely to accept your offer knowing your loan is already approved.

• Faster Closing: Pre-approval streamlines the loan process, allowing you to close more quickly.

 

Answer a few simple questions, and we’ll calculate your buying power based on standard lender guidelines.

 

Ready to take the next step? Get a sense of your borrowing power...click HERE.

Home loans come in various shapes and sizes, each designed to fit different financial situations and goals. Whether you’re buying a home or refinancing, understanding the benefits of each loan type is key to making the right decision. Most home loans fall into two basic categories, each with distinct advantages.

​

See my Loan Programs page for summaries of several alternatives.

 

Fixed-Rate Mortgages

Fixed-rate mortgages are typically offered in terms of 15 or 30 years. With this type of loan, your interest rate and monthly payments stay the same throughout the life of the loan. You might choose a fixed-rate mortgage if:

 

• You plan to live in the home for more than 7 years.

• You prefer the stability of a consistent principal and interest payment.

• You want to avoid the risk of future payment increases.

• You anticipate your income and spending will remain steady.

 

 

Adjustable-Rate Mortgages (ARMs)

 

Adjustable-rate mortgages, or ARMs, also have terms of 15 or 30 years, but their interest rates and monthly payments can change over time. This fluctuation occurs periodically and is based on market conditions. You might opt for an ARM if:
 

• You plan to stay in your home for less than 5 years.

• You’re comfortable with payments that may increase or decrease over time.

• You’re okay with the potential risk of future payment increases.

• You expect your income to grow in the future.

 

By carefully weighing these factors and consulting with us for expert advice, you can select the loan that best aligns with your current needs and future financial goals. Let us help you make the choice that works for you!

Betty makes use of LendingPad to guide you through the initial loan application process. LendingPad is a web-based system that automates the loan application and approval process for mortgage lenders. The process for using LendingPad to apply for a loan includes the following steps: 
 

• Take an application

• Pre-approval

• Order a credit report

• Run AUS

• Complete fees

• Work on and send disclosures

• Order documents with IDS or DocMagic

• Send documents for eSign​​

​

 You can start now. Click HERE.

Navigating the home loan process can feel overwhelming, but with Betty on your team, you can leave the stress behind. While lenders follow general guidelines set by government agencies, approval criteria vary based on the specific terms of each loan. That’s where Betty’s expertise ensures the process stays smooth and manageable.

 

Loan Approval Basics

 

Approval is generally based on two key factors:
 

1. Your Ability and Willingness to Repay – Assessed through income, credit, and financial stability.

2. Property Value – Verified through appraisal to ensure it meets lending standards.

​

What Happens After You Apply?

​

As soon as your loan application is submitted, we’ll start the approval process. Betty will work alongside the loan processor to verify your information. If any issues arise, Betty will troubleshoot them with you. Here’s what the process includes:

​

1. Income and Employment Verification
   •  Is your income sufficient to cover monthly payments?
   •  Industry guidelines are used to evaluate your income and debts.

2. Credit Check
   •  How well have you managed past debts?
   •  Your credit report is reviewed to determine payment history, loan terms, and any payment delays, which may need to be explained.

3. Asset Evaluation
   •  Do you have the necessary funds for the down payment and closing costs

4. Property Appraisal
   •  Does the property’s value meet the lender’s requirements?

5. Location, zoning, and market value are all assessed.

6. Additional Documentation
   In some cases, further documents may be required to complete your loan approval.

​

Tips to Improve Your Chances of Approval

 

To keep the process on track and improve your chances of approval:

• Complete Your Application Fully

• Use our online forms for a faster, more convenient submission.

• Respond Quickly to Documentation Requests

• Prompt responses are especially important if your rate is locked or you’re on a tight closing timeline.

• Avoid Unexplained Account Transfers

• Keep a paper trail for any money moved in or out of your accounts. If you’re receiving funds from friends or family, prepare a gift letter and contact us for guidance.

• Hold Off on Major Purchases

• Wait until your loan closes to make significant purchases, as new debts could negatively impact your application.

• Plan Ahead for Closing

• If you’ll be out of town around your loan’s closing date, consider signing a Power of Attorney to avoid delays.

​

With Betty on your side, you’ll have peace of mind knowing every detail is handled professionally and efficiently. Let’s take the first step toward your new home—together!

After your loan is approved, the final step is signing the loan documents. Before signing, carefully review the documents to confirm that the interest rate, loan terms, and all details match what was promised. Also, verify that your name and property address are correctly listed. Typically, the signing takes place in the presence of a notary public at a title company or attorney's office..

 

At closing, you’ll need to pay any fees associated with obtaining the mortgage and transferring property ownership. Be prepared to wire monies to the title company handling the closing and verify all wire instructions by phone as there is a lot of fraud in these types of transactions.

 

Once you’ve signed the documents, your loan will usually close shortly thereafter and you’ll receive the keys to your new home. For owner-occupied refinance loans, federal law grants a three-day review period after signing before the transaction can officially close.