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Organize your documents
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If you are buying or refinancing a
home
- If you are
salaried: provide two years W-2 and one month of paystubs
OR if you are self-employed:
provide two years tax returns and a YTD profit and loss statement.
- If you own rental property,
please provide rental agreements and two years tax returns.
- If you wish to speed up the
approval process, please also provide three months bank statements for
each bank, stock and mutual fund account.
- Provide recent copies of any
stock brokerage or IRA/401K accounts that you may have.
- If you are requesting a cash
out refinance please provide a letter explaining what you plan to do
with the proceeds.
- Provide a copy of divorce
decree if applicable.
- If you are NOT a US citizen,
provide us with a copy of your green card (front & back) or, if you are
NOT a permanent resident provide us with your H-1 or L-1 Visa.
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If you are applying for a home
equity loan
- If you are
salaried: provide two years W-2 and one month of paystubs
OR if you are self-employed:
provide two years tax returns and a YTD profit and loss statement.
- If you own rental property,
please provide rental agreements and two years tax returns.
- Please provide a copy of the
note on your first mortgage. This will normally be found in your closing
loan documents.
- Please provide a signed letter
explaining what you plan to do with the proceeds.
- Provide a copy of divorce
decree if applicable.
- If you are NOT a US citizen,
provide us with a copy of your green card (front & back) or, if you are
NOT a permanent resident provide us with your H-1 or L-1 Visa.
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Get Qualified
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Getting qualified before you apply for
a loan can help you understand how much you can borrow.
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 the maximum house you
can buy, so you don't waste time looking for properties you cannot
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 approved.
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Shop loan programs and rates
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To shop for a loan you will need
to:
- Think about how long you
plan to keep the loan.
If you plan to sell the house in a few years you may want to consider an
adjustable or balloon loan. On the other hand, if you plan to keep the
house for a longer time, you may want to look at fixed loans.
- 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. So for example 1 point on a $150,000 loan is
$1,500. The more points you pay, the lower the rate you will get.
- Compare different
programs.
Shopping for a loan can be difficult. With so many programs to choose
from, each of which has different rates, points and fees, it's hard to
figure out which program is best for you. That's where an experienced
loan officer can help you make a decision that's best for you.
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Obtain Loan Approval
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Once your loan application has been
received we 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
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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 us.
- Do not go out of town around
the closing date. If you do plan to be out of town when your loan is
expected to close, you may sign a power of attorney to authorize another
individual to sign on your behalf.
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Close the Loan
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After your loan is approved, you
will be required to sign the final loan documents. This will normally
take place in front of a notary public. Be prepared to:
- Bring a cashiers check for
your down payment and closing costs if required. Personal checks are
normally not accepted.
- Review the final loan
documents. Make sure that the interest rate and loan terms are what you
were promised. Also, verify that the name and address on the loan
documents are accurate.
- Sign the loan documents.
Your loan will normally close
shortly after you have signed the loan documents. On refinance and home
equity loan transactions federal law requires that you have 3 days to
review the documents before your loan transaction can close.
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Frequently Asked Questions |
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 Q:
What is an Annual
Percentage Rate (APR)
A: is an interest rate that is different
from the note rate
read more
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About Us
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Covenant Mortgage & Investment Group
was founded on a strong and genuine
belief in the "customer for life"
principal of doing business.
Referrals from previous customers
have always delivered the majority
of the Company's production. |
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