In today's lending environment there are 4 major steps to each loan package
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Loan Application (more . . .)
You will meet with a representative of Sibcy Cline Mortgage Services to complete the loan application. If you are anxious to have your loan approved without delays, you can help speed the loan process by being perpared with information needed and having it available at the time of the application interview (see our checklist). An application fee is collected at the time of the application.
Processing (more . . .)
Starting with the information gathered at loan application, the lender will put together a package of documents showing your ability to qualify for the loan. This package will include a credit report, verifications of employment, loans and deposits, and property appraisal. Verifications that differ from the information gathered at initial loan application may require additional explanation or documentation.
Loan Approval (more . . .)
Once the lender has collected all information, your loan application and supporting documents will be submitted to an underwriter. The underwriter's job is to review all documents evaluating the risk to determine if your loan request can be approved. (*Certain types of financing allow recommended loan approvals during the loan application.) There are five major areas that are evaluated. Every loan program has its own guidelines and the specific requirements vary from program to program.
1. Stable Income Versus Debt (more . . .)Stable income is the income you receive from various sources which is steady and continuing. It should be sufficient enough to handle your new house payment and long-term obligations. Your income and obligations will be evaluated to see if they meet income ratio guidelines.
2. Assets (more . . .)You need to have enough money for the downpayment and closing costs, and should also have some extra cash (called reserves) left over for moving expenses, emergencies, etc. The money can come from various sources such as savings/checking accounts, gifts, or sale of assets (house, stocks, etc.). All must be verifiable.
3. Credit (more . . .)Your credit history will be checked to see if you have met your monthly obligations in a timely manner. The previous 12 months are especially important. If you have any credit problems, you should discuss them with the lender's representative. Some credit problems may have been caused by extenuating circumstances and a loan may still be granted.
4. Job Stability (more . . .)Lenders like to see that you have been in the same line of work (not necessarily the same job) for at least two years. Time spent going to school can be counted if it is consistent with your current employment. If there are any gaps in employment history, you will be asked to explain them.
5. Property (more . . .)The property is the security for the loan. An appraisal is used to determine the value and the condition of the property. Also taken into consideration is the amount of the loan in relation to the value of the property. A lower Loan-to-Value ratio resulting from a larger downpayment is generally regarded with less risk by the lender.
Closing (more . . .)
When the loan is approved, all parties will decide when and where you would like to close the sale. Make sure that the lender is aware if certain parties cannot be present at the closing. "Power of Attorney" documents must be reviewed and approved (if even allowed) by the lender. The lender will probably need a minimum of 48 hours to prepare legal documents. Make sure to bring your Homeowner's Insurance Policy and a certified check in the amount of funds necessary for closing. At the closing, you will sign documents agreeing to the terms of repayment and the seller will convey the property to you. A delay in closing can occur if any loan request changes: purchase price, loan amount, escrows or rate of term.
- A Sibcy Cline Mortgage Services loan officer can guide you through each step of the loan process.
- We offer Fixed and Adjustable rate Conforming, Jumbo, FHA and VA products
- Curious about what you can afford? Use our calculators
- Curious about current interest rates?
- Apply Online with our secure application and get the process started