Call the Silva + Villa team
During this initial conversation the loan application will be started and your objectives will be explored. We have a simple mortgage calculation tool that we will customize to your scenario. It will break down the benefits of each option provided. For the first time home buyer, it will compare the after-tax benefits of buying versus renting. For a refinance, it can show the cumulative interest savings, the monthly payment savings, and/or the cost to refinance savings.
If you are new to this process and it all seems overwhelming, we are happy to meet with you personally, to review each option available to you. Our goal is to have you educated enough to make the best decision for your specific circumstance.
If you are seasoned at home financing, we can take the loan application over the phone and set up a drop box to facilitate the flow of paperwork; the goal being to make a stressful time as streamlined and efficient as possible.
Run Your Credit Report
Silva + Villa can both run your credit and help advise you on how to improve your credit or make corrections if necessary. Inevitably, errors happen, and there is something to correct on your report.
It is always recommended to be vigilant in knowing what is reported. You can access a free credit report annually at: annualcreditreport.com
A credit score is defined as the probability that you will have a late payment in the next 30 days. It is determined by statistical analysis of every person who has been extended credit.
The score varies between industries and trade bureaus. Meaning a credit score obtained from an auto dealer, or a credit card company may differ from a mortgage company. A mortgage company looks at your middle credit score derived from the three agencies:
Equifax – 314 to 818
Trans Union – 309 to 839
Experian – 320 to 844
Gather supporting materials to verify your loan application
Most commonly includes the following items:
- Copy of your Driver’s License
- Copy of your Social Security Card
- Copy of your most recent paystubs for one full month with Year-to-date figures
- Copy of your most recent statements for two full months to documents your assets:
- Asset accounts may include checking, savings, IRA, Pensions, 401k’s, Brokerage accounts, gift funds.
- Note, must include all pages. If the statement states it is 1 of 7 pages, all 7 pages are needed even if one page notes “Intentionally Blank”.
- Copy of your w-2’s and Federal tax returns for the last two years. Note, tax returns must include all schedules.
- For a refinance, a copy of your existing mortgage statement(s), property tax bill, and homeowner’s insurance statement.
Finalize Loan Application and Disclosures
By this step, the Silva + Villa team has all the information to finalize the loan application and disclosures. This package is 30+ pages of information, which can seem daunting. Again, the mortgage calculation tool will represent all the pertinent aspects of the loan application; including the monthly payments and a detail on all the costs associated with the transaction. It will be the tool to ensure the loan application is accurate to your understanding. You will need to sign the application and return. Your file is considered to be pre-qualified at this point.
The Silva + Villa team will order escrow, title, and appraisal on your behalf per your instructions.
Submit the Loan Application to the Lender
The Silva + Villa team will work with you to choose the optimal lender based on your needs and seek out the best program and pricing for your situation. They will coordinate the packaging of your information for the lenders review. They will coordinate locking the rate with you and review the final pricing terms with you.
Conditional Loan Approval
The lender approves the loan application based on certain conditions being met. The Silva + Villa team will work with escrow, title, your representatives and you, to meet the final conditions.
Signing of Loan Documents
The Loan Documents are the final documents representing the final terms of the financing and all the necessary paperwork for recording the transaction.
If this is a refinance, there is a 3-day right of recission after you sign. If there is any reason that you feel this refinance is not in your best interest, you can back out within the 3-days. This is offered by law, however, we have never had a client exercise this option. We pride ourselves in the mortgage calculation tool as educating you to make your best decision up front. We aren’t here to sell you to make a transaction, but to guide you to make educated decisions for yourself.
Purchases do not have a 3-day right of recission only because of the importance to meet the times frames provided in the sales contract.
Loan Funds / Escrow Closing
At this point, loan documents go back to the lender for final review and confirmation that all loan conditions have been met. If that is the case, funds are released by the lender and the following day escrow closes the transaction by recording the deed of trust within the county in which the property is located.
Upon confirmation of recording, escrow closes. The Final Closing Statement aka HUD-1 will be your record of the transaction and should be retained for your tax records.