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I will need the following documents in order for me to submit your loan application:
FICO Score range and meaning:
Credit Score Chart & Range
700-759 Very Good
500-579 Very Poor
Fairbank Realty Group is approved with several different lenders including lenders that can do loans for international buyers. By being approved with different lenders you have more choices when it comes to mortgage rates and mortgage terms.
The Mortgage Process
BEFORE YOU APPLY FOR A MORTGAGE
Timely and accurate completion of the application will often expedite the process. So please make sure to gather all the pertinent documents before you apply for a mortgage, otherwise it will delay the process.
AFTER YOU APPLY
Every loan is different and so is the time it takes to complete the loan process. But the stages which each loan will go through are the same.
Once you apply for a loan, the application will be sent to a loan processor. Often the processor will be our source for the status of the loan. The processor will gather necessary documents in support of your request for a loan, including verifications of employment, verification of deposit, verification of mortgage, etc. Processing time varies based on the type of loan and the timely collection of the required documents. Processing is often dependent on third parties in collection of the documents such as employers, other lenders, banks, etc.
Appraisal - An appraiser will be selected to render an opinion of the estimated value for your property.
Credit Verification - A credit report will be run to determine your debts and payment history. This may be done at the time of application with your approval.
Income Verification – Your employer will be asked to verify your income and length of time on the job.
Asset Verification – Your bank, savings and loan, and/or credit bureau will be asked to verify that you have sufficient funds for the loan transaction.
Previous Housing Verification – Your current lending institution or landlord will be asked to verify your payment history.
After the processing steps are completed, your application will be given to an underwriter for review. The underwriter will carefully study your application and will render an opinion based on product eligibility criterion and established investor guidelines. The underwriter will assess two main factors: 1) the ability and willingness of the borrower (you) to repay the debt 2) the property’s ability to serve as collateral for the debt.
A closing date should never be set until the loan is approved. Closing a loan is the process of executing and delivering all documents required by the lender, disbursing the mortgage funds and recording mortgage instruments. This occurs when you sign the papers for your mortgage loan, and when the property is transferred, if your loan is for a home purchase. Dependent on state requirements closings can take place at a title company, attorney’s office, or Mortgage Company’s office.
The most important thing to do before starting your search for your new house is getting pre-approved for a mortgage, this will help you to know what the limit is for your mortgage amount, down payment as well as monthly payment; the pre-approval letter will not include things like: Property tax payments, insurance payments, Home owner association payments, so you may want to take those payments into consideration before you start looking for a property.
Once pre approved you can start your house search, the pre-approval letter will help you increase your chances that the offer you present to buy the property get accepted given that the seller will know that you are serious about buying the property.
A good thing to know are your ratios; lender use them to determin your purchasing power. Most lenders use a ratio of 38/45 meaning if you combine all your monthly liabilities not counting utilities an add them to your proposed mortgage payment plus monthly property taxes, home insurance Home Owners Associations (If applicable) and in some cases mortgage insurance (If applicable). All those liabilities should not exceed 38% for all liabilities not including the mortgage payments and should not exceed 45% of your income monthly income before taxes and this includes