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Loan Process:

Arrange Your Documents

If you are buying or refinancing a home

  1. If you are salaried: supply two years of W-2s and one month of pay stubs OR if you are self-employed: supply two years tax returns and a YTD profit and loss statement.
  2. If you own rental property, please supply rental agreements and two years tax returns.
  3. If you wish to speed up the approval procedure, supply two months of bank statements for each bank, stock and mutual fund account.
  4. Obtain and supply current copies of any stock brokerage or IRA/401K accounts that you may have.
  5. If you have been divorced it is important to supply a divorce decree.
  6. If you are NOT a US citizen, please give a copy of your green card (front & back), or if you are NOT a permanent resident please supply us with your H-1 or L-1 visa.
  7. Please bring a copy of your driver's license and social security card.

If you are applying for a home equity loan

  1. If you are salaried: supply two years W-2 and one month of pay stubs OR if you are self-employed: supply two years tax returns and a YTD profit and loss statement.
  2. If you own rental property, please give us rental agreements and two years tax returns.
  3. Please supply us with a copy of the note on your first Kentucky mortgage. This will usually be found in your closing loan documents.
  4. Supply a signed a letter showing what you plan to do with the profits.
  5. If you have been divorced it is important to supply a divorce decree.
  6. If you are NOT a US citizen, please give a copy of your green card (front & back), or if you are NOT a permanent resident please supply us with your H-1 or L-1 visa.

Get Qualified or Approved on a Loan

Pre-approval vs. Pre-qualifying

A pre-approval is obtained when a prospective buyer pays for a credit report and supplies the lender with necessary documentation to determine employment and income/debt ration. Upon pre-approval, the lender is able to give the buyer and their RealtorĀ® a letter verifying a pre-approved loan amount and any other stipulations needed to obtain the loan. Other stipulations may be that the buyer must sell their existing property, or pay off a debt, or subject an accepted Offer to Purchase contract, or subject to appraisal. This should all be detailed in the letter.

You can be pre-qualified by simply giving the lender information via the telephone or the Internet. The lender will generally give you a loan amount based on the information you have given them. This is all subject to verification and therefore is not worth much in the seller's eyes.

Shop for the best rates and terms

To shop for a loan you will need to:
  1. Think about your goals... how long do you plan to keep the loan? If you intend to sell the house in a couple of years you may want to think about an adjustable or balloon loan. If you plan to keep the house for awhile, you may want to consider a fixed loan.
  2. Evaluate the relationship between rates and points. Points are considered to be prepaid interest and are tax deductible. Each point is equal to one percent of the loan. The more points you pay, the lower the rate you can get.
  3. Weigh the different program options. Shopping for a loan can be tough, so use your financial institution and advisors as appropriate.

Obtain Loan Approval

The loan approval process begins once your loan application has been received. This involves authenticating your:
  1. Credit history
  2. Employment history
  3. Assets such as bank accounts, stocks, mutual fund and retirement accounts
  4. Property value
To improve your chances of getting a loan approval it is important to:
  1. Fill out the loan application fully.
  2. Reply quickly to any requirements for supplementary documents. This is particularly crucial if your rate is locked or if you intend to close by a specified date.
  3. Don't make any major purchases. Anything that makes your debts rise, may have an unfavorable affect on your present application.
  4. Do not put money into your bank accounts unless it can be traced. If you are receiving money from friends or family, please let us know.
  5. Don't go out of town at closing time. If you do plan to be out of town when your loan is anticipated to close, you may sign a power of attorney, to authorize another person to sign for you.

Close the Loan

After your loan is approved, it is necessary to sign the final loan papers. This will usually take place with a notary. Make sure to:
  1. Check with the closing attorney to see if you need a cashier's check for your down payment and closing costs or if personal checks are accepted.
  2. Look over the final loan documents. It is important to make sure that the interest rate and loan terms are what you agreed to. Validate the name and address on the loan documents, as well.
  3. Sign the loan documents.

Generally your loan will close soon after you have signed the loan documents. Although, with refinance and home equity loans federal law necessitate that you have 3 days to assess the documents before your loan transaction can close.


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Where do I go next?

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