THE LOAN PROCESS

Unclear about the Loan Process and all that it entails? Listed below are the Loan Process steps to help you understand what will take place.  If you’d like to download a PDF version to save, please click here: The Loan Process

JS Realty PreApproval BlockA pre-approval is a commitment by a lender to make a mortgage loan to a specified borrower, prior to the identification of a specific property. The pre-approval process starts with an interview and completion of a loan application, and ends with the lender issuing a pre-approval letter demonstrating that the applicant is a suitable buyer. The lender will typically require at minimum 2 years of W2 statements, 2 years of federal tax returns, 2 month’s of asset account statements, and a satisfactory credit report.

JS Realty Rate Lock BlockAt this step the lender issues a written agreement guaranteeing the borrower a specified interest rate, provided the loan closes within a set period of time. To lock a rate the applicant must have a ratified contract and an established settlement date.

JS Realty Disclosure BlockThis is when the lender offers the official Good Faith Estimate, Truth in Lending Form and loan disclosures. These documents need to be presented to the applicant within 3 days of lock and will need to be signed and returned to the lender. It is also common for the lender to request additional supporting documentation at this point.

JS Realty Appraisal BlockAn appraisal is a written analysis of the estimated value of a property prepared by a qualified appraiser. This process is performed to make sure that the property is of fair market value and supports the agreed upon purchase price.

JS Realty Processing and Underwriting BlockDuring the processing step the Loan Officer and his/her staff will gather and analyze all of the information to ensure that the applicant’s loan will meet the specific program guidelines. The Underwriter will then complete the final review of documents to verify that all appropriate disclosures and documentation is completed to support the issuance of final loan approval. It is common for the Underwriter to request additional explanations or documentation during this process.

JS Realty Closing BlockThe closing is a meeting in which the sale of a property is finalized with the buyer signing the mortgage documents and paying closing costs. Also called “settlement.” This is where the applicant receives their keys to their brand new home!

If you or someone you know is interested in purchasing a home or needing to refinance, please contact me!

JS Realty KHarris LenderKeith Harris
Senior Loan Officer
Intercoastal Mortgage Company
Direct: (703) 259-0788
Cell:    (703) 395-6601
NMLS ID # 838973

 

Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates terms and conditions are subject to change.  ICM NMLS# 56323 (www.NMLSconsumerAccess.org)

The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.

CONVENTIONAL VS FHA LOANS

An FHA loan is a mortgage loan that is insured by the Federal Housing Administration (FHA)

So why is an FHA loan a viable option to be considered?

Compared to conventional loans, an FHA loan offers some advantages for borrowers. Some of these advantages are due to recent changes in the rules for FHA loans, along with some changes in guidelines for conventional loans. Here are some things to consider when looking to purchase a primary residence or even if potentially refinancing a current FHA loan:

  • Allowable debt-to-income ratio: this is often higher on FHA loans than conventional loans
  • Waiting periods: If your credit has been impacted in recent years, FHA has the JS Realty Mortgage Loan Approvedfollowing waiting periods that are often much shorter than for conventional loans.

Bankruptcy (Chapter 13) = 1 year
Bankruptcy (Chapter 7) = 2 years
Foreclosure = 3 years [Conventional = 7 years]
Short Sale = 3 years [Conventional = 4 years]

  • Loan Limits: In the DC Metro Area, an FHA loan is limited to $625,500, with a 3.5% down payment. Conventional loans between $417,000 and $625,500 typically require a 10% down payment.

Recently, the FHA reduced the monthly mortgage insurance factors from 1.35% to .85%. This will mean lower monthly payments for purchases and provides current FHA loans to be refinanced with a lower mortgage insurance payment. For example, on a loan amount of $400,000, there is a monthly savings of $161 with the new monthly mortgage insurance payment. In addition, 100% of the down payment can come in the form of a gift from appropriate sources.

Every borrower has a unique need, as far as their loan is concerned. If you have any questions or would like more information, please contact our preferred Lender, Keith Harris at Intercoastal Mortgage Company.

JS Realty KHarris LenderKeith Harris
Senior Loan Officer

NMLS Registry # 838973
Office: 703.259.0788
Mobile: 703.395.6601
KeithH@icmtg.com

 

The JS Realty Team – not only serving Brambleton, serving all of Northern Virginia.