You’ve finally made the decision to buy a home. Now what? The first – and most important – step in the home buying process is financing because you can’t do anything until you know how much you can afford. To get started, you need to understand what types of home loans are out there and what lenders are looking for from a borrower.
At Cardinal Financial we pride ourselves on offering our clients the widest range of loan products in the marketplace. With that said, there are three main factors that help determine if you qualify for home financing: income, assets, and credit history.
Most loan programs require that we verify all of your income sources. Typically you will need to provide paystubs, your W-2, and copies of your tax returns.
A critical step in the mortgage loan application process is to verify the sources for your down payment, closing costs, and assets, as well as documenting income and debts.
All lenders will review your credit history to determine the type of credit used, the amount owed, and your history of repaying debt.
The Home Loan Process
Applying for a Loan
This is when one of our mortgage specialists takes your application and reviews your credit history. He or she will also discuss your short- and long-term goals and reasons for wanting to become a homeowner. This information is very helpful when evaluating which loan fits your needs best.
Choosing the Best Loan
With so many loan programs to choose from at Cardinal Financial, we understand that it can be difficult deciding which loan is best for your individual situation. During your application process, we will walk you through each loan option to find the one that best suits your personal funding needs and to answer any additional questions you might have.
Locking Your Loan Rate
If you have a Purchase and Sale Agreement, you can lock-in your interest rate. In most instances, you have the choice to either lock your loan at a set rate and fee for up to 30, 45, or 60 days, depending on the lock-in period you’ve selected, or you can let the loan float. We can help you with this decision, but ultimately the choice is yours.
Processing Your Loan
Once you have completed and signed your loan application, one of our mortgage specialists will work with you each step of the way to get your loan approved and closed in a timely manner. After you have provided the necessary financial information, we will arrange for an independent appraisal and preliminary title report.
In many cases, loan approval can be completed at the time of application. However, certain loan programs require that your loan file be sent to an underwriter for review. Your underwriter may request more specific details about the property or your financial information before approving your loan. At Cardinal Financial we have the added benefit of in-house underwriter support. This allows us to close loans quickly and more efficiently on behalf of our clients.
Preparation for Closing
After your loan package is complete, the file is prepared for closing and sent to your closing agent.
Your closing agent will call you to set up an appointment to sign the final papers. At that time, you will be asked to bring a certified check for the closing costs and down payment. After you sign, the closer will prepare the final loan papers so that they can be legally recorded.
At Cardinal Financial, our team of skilled loan officers are dedicated to helping clients find the loan that best meets their personal and financial needs. From Conventional Loans to FHA, VA and USDA Loans, we offer the widest range of products in the industry and are confident that we can assist you in making your dreams of homeownership a reality. To see if you qualify, please fill out our online application or contact one of our mortgage specialists.