Posts Tagged ‘home loan process’

10 Home Loan Dos and Don’ts When Obtaining a Mortgage

Monday, March 20th, 2017

10 Dos And Don'ts When Obtaining A Home Loan

These Top 10 Dos and Don’ts can greatly impact your ability to qualify for a home loan or close on time. It is critical you follow these ten things to help ensure your home loan process goes smoothly.

  1. Don’t apply for new credit or make major credit purchases
  2. Don’t close or max out credit cards AND stay current on payments
  3. Don’t change jobs
  4. Don’t switch banks, move your money around, or deposit large amounts of cash or non-payroll checks into your bank account
  5. Don’t leave town for an extended period during escrow
  6. Do keep a paper trail for charge offs and/or collection payoffs
  7. Do keep a paper trail for all non-payroll deposits into your bank accounts
  8. Do wire gift funds directly to the escrow company
  9. Do advise your Mortgage Loan Originator of any debts not reporting on your credit report
  10. Do call your VITEK Mortgage Loan Originator if you have questions!

A Prepared Buyer is a Successful Buyer

Monday, December 12th, 2011

First-time Homebuyers

Understanding and following these guidelines will help you be a more prepared, and ultimately, a more successful buyer when applying for a home loan. Though these four sections are for educational purposes only, and may change at any time, understanding what expectations must be met in order for you to qualify for a loan will help you when purchasing a home.

All Down Payment And Closing Cost Funds Will Be Carefully Examined By The Lender:

  • You must provide detailed and accurate information to show which accounts the funds are in and where the funds are coming from
  • You must document the source of any funds that have been in your accounts for less than 2 months
  • Any changes that occur to your financial condition will need to be explained to the lender
  • Changes to your assets, employment, income or credit scores during the escrow could jeopardize your ability to qualify
  • Provide complete documents – all pages!
  • Provide documents with names, addresses and account numbers

Things Not To Do During An Escrow:

  • Do not transfer funds from one bank account to another
  • Do not make unusual large deposits into your bank account – you need to provide documentation for the source of any deposits
  • Do not buy a car just prior to buying a house or during the escrow
  • Do not spend large sums of money buying furniture or appliances
  • Do not change jobs
  • Do not apply for new credit cards
  • Do not close existing credit cards

The Lender Will Require A Letter Of Explanation and/or Support Documentation For:

  • Recent inquiries on your credit report
  • Derogatory items on your credit report
  • Recent deposits into your bank accounts
  • Recent transfers of money from one account to another
  • Evidence earnest money deposit has cleared your account

If You Will Be Receiving Gift Funds The Lender Will Require:

  • A gift letter signed by you and the gift donor
  • Evidence of the donors ability to gift the funds – a bank statement
  • Evidence of the receipt of the gift funds – a copy of the check or the wire
  • Evidence of the funds being received into your account

If you have questions on any of the above points, or would like to learn more about applying for a home loan, please contact me for more information.

Photo of Jeannie Gardner

Jeannie Gardner
Mortgage Loan Originator
(916) 482-1566
Licensed – NMLS # 281697

Understanding the Home Loan Process

Wednesday, July 13th, 2011

At VITEK we’re committed to simplifying the home-loan process for homebuyers. We believe obtaining a home loan doesn’t have to be a daunting prospect.  The key is, to understand the basic steps in the loan process so you will know exactly what to expect.  Then before you know it, you will be holding the keys to your new home!

First-time Homebuyer

Step 1: Get Pre-Approved

Allow us to collect some information and documentation from you to determine how much home you can afford.

Step 2: Select a Real Estate Agent

If you haven’t already, now is the time to select a real estate agent. A real estate agent will help you find a home, negotiate a successful offer and generally represents your interests throughout the escrow process.

Step 3: 

Contingency Period

The contingency period allows you time in contract to buy your selected home and collect more information without forfeiting your deposit.  The timeframe ranges from between 10 to 18 business days, and is typical in most purchase contracts. During this period, your real estate agent will help you: 

  • Review and approve the Seller’s Real Estate Transfer Disclosure Statement
  • Review and approve the Preliminary Title Report
  • Contract for physical inspections
  • Order, review, and approve requested or required inspections

During this time, we will work to satisfy any loan contingencies specified in the purchase contract. Once all contingencies have been met, the seller is entitled to your initial good faith deposit should you choose not to purchase the home.

Step 4: Homeowners Insurance Coverage

You will need to determine which homeowners insurance company will provide you the best coverage at a fair price. Homeowners insurance must be in place prior to close of escrow. If you are in a Homebuyerflood zone you will need flood insurance. VITEK will help you make this determination.

Step 5: Signing Documents

VITEK will prepare documents for you to sign. We will also transmit the documents to the appropriate location for signing, typically the title/escrow company. You will receive copies of all title and lender documents you sign.

Step 6: Down Payment and Closing Monies

Typically, you will bring a cashier’s check to the title/escrow company when you go to sign, a few days prior to closing. The escrow officer will provide a Buyer’s Estimated Closing Statement, which will itemize your costs and credits that closely estimate total monies due. 

Step 7: Funding

The escrow company will now send your signed loan documents, along with any outstanding loan condition documentation, back to VITEK. Once all documentation has been reviewed, VITEK will wire loan funds to the escrow company. 

Step 8: Close of Escrow

Once the escrow company verifies receipt of the wired funds, they will arrange for the deed of title to be recorded in your name at the County Recorder’s office. 

At this point you will be the owner of a new home!

If you are looking to purchase a home, we would be happy to help walk you through the home-loan process.  If you have any questions, please feel free to contact us today, so we can discuss the first step of getting you pre-approved for a home loan.

Photo of Philip Duncan

Philip Duncan
Executive Vice President
(916) 486-6430

We'll walk you through each step of the loan process.
Contact us today to get started!