How Should I Start the Loan Process

Chances are you are well aware that now is a great time to purchase your next home, but what steps do you need to take? This blog is going to cover the steps you must take to obtain a loan. You may want to start the process by contacting me for an initial consultation. After listening to your specific goals and needs, I will suggest the program that is appropriate for your situation. At this time I will ask you to fill out the mortgage application. It is recommended, for efficiency sake, that you apply over the telephone or through our safe and secure website. If you prefer, you may apply in person or through the mail. I will be happy to provide you with a good faith estimate based on the programs you are interested in and eligible for.

After you have completed the application I will initiate the conditional approval process. At this time, I may ask you for some personal documentation such as pay stubs, W2’s, tax returns, bank statements or other pertinent information. I will be able to quickly determine what documentation will be necessary based on your application and interview. Normally, we are able to issue a conditional approval within 24 hours, though this varies for individual circumstance. The approval will normally be conditioned upon some tasks that have not occurred yet, like the appraisal or title work being completed.

Now that you have completed these steps your loan will be placed in a conditional approved status. This will enable us to issue a conditional approval letter. This letter is normally drafted when you are ready to make a contract offer on a home after your property search. The letter will contain specific information on the property you have selected. If you are refinancing a property you already own, I will help you take the necessary steps to complete that process.

Once you have a ratified contract to purchase a home or have decided to refinance and given me permission to order your appraisal, we will "lock in" the interest rate on one of the many competitive Intercoastal Mortgage programs you may select. You will sign all verifying application documents in the loan package and return it here. I will complete all matters of due diligence. I will then submit the loan to our in-house underwriters. There, it will be validated and sent to our in-house closing department. The closing department will then interface with your chosen title company to insure that your settlement occurs on time and without any glitches. We excel at making this process as stress free as possible.

When purchasing your next home, you must utilize the best possible resources available to you. We strive to be the best lender to assist you with your next home buying experience. We are professional and, with the exception of the required 3^rd party appraisal, complete all other phases of the mortgage process in-house. Start the process today, and contact me.

What Is a Non-Conventional Loan

These types of loans are for the borrower or property that does not meet the traditional guidelines for a typical mortgage loan. They provide us, as your lender, a way to ensure that we have a solution to the issues or obstacles you may encounter in trying to obtain a mortgage. Non-conventional loans are often used for purchasing private residences and for building or renovating them. This blog discusses the non-conventional loan. Three types of non-conventional loans that we offer and will be discussing are:

·         Construction Loans

·         Renovation Loans

·         Bridge Loans

A construction loan takes a borrower through lot acquisition, construction, and conversion to a permanent loan upon completion of the project. A construction loan is a one-time close loan program to finance the construction of your dream home, providing both the construction funds and the permanent loan. This means you will save thousands by not having additional closing costs from multiple loan settlements.

A Renovation Loan is a construction loan for a primary residence that the applicant already owns. This program allows the homeowner to borrow funds based on the fully renovated value.

Bridge Loans facilitate a non-contingent contract for the purchase of a new primary residence using equity in a borrowers existing primary residence.

We provide conventional and non-conventional loans, and would be happy to assist you in either process. Contact me for aquality lending relationship and experience.

More Loan Programs We Offer

Obtaining a mortgage is probably one of the most significant things we can acquire. There are multiple types of mortgage loans; just as we’ve discussed in previous blogs. This blog will be discussing three more specific types of mortgages we offer.

The three loan programs we will be discussing are:

• Interest Only Loans
• Buydowns
• Balloons

Interest Only Loans are offered to provide for mortgage payment flexibility by not requiring the borrower to pay principal on a monthly basis. This can be advantageous for qualifying purposes or for the individual who has the financial where-with-all to pay principal at their discretion. They may choose to use the money that would be applied to their principal for other purposes such as paying off a second trust or other debts. Interest Only Loans are available for only a select few mortgage products.

Buydowns offer a lower interest rate for the first 1, 2 or 3 years of the loan. This allows for easier qualifying and for the borrower to gradually ease into their increased final mortgage payments. The buydown is typically accomplished by the use of points which can be paid by the purchaser, seller or builder. Your loan officer can provide a specific breakdown for your financing needs.

A balloon mortgage is one that has a regular monthly payment fixed for a specific period of time - usually 5 or 7 years. These loans are amortized typically over 30 years. At the end of the fixed 5 or 7 year period, a final lump sum (balloon payment) may be due. In some circumstances, the loan can continue for the remaining 30 years based on current market rates. Please consult with your loan officer about these possible provisions.

As you can see from this blog and a few previous, we offer many options to help you achieve your next home. Intercoastal Mortgage Company is perfectly poised to assist you in not only the purchasing of the home, but all the necessary things involved with it. All it takes is a phone call to begin the process of pre-approval which will be followed by you and us finding the perfect home for you. Contact me to start the process and obtain your first or next home through a quality lender that strives to be the best.