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| | Many
people find the process of getting a loan to be confusing and, sometimes, a little
intimidating. Our
"Home Loan U" will provide you with some of the information you need
so you know what to expect and how to make wiser decisions. | |
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Loan
Approval Process
Getting a loan is a very simple process,
provided that you know the steps along the way and what is required at each step.
Step 1 - Loan Application.
Premier Bancorp has made
this very simple. You can...
• Use our simple on-line application.
• Make an appointment with a loan rep.
The application includes
basic information regarding your name, address, contact information, your job,
your salary, your assets and your liabilities.
Step 2 - Paperwork
The next step is to gather the documents that verify your application. If you're
employed, you'll need...
• W-2s for the past two years.
•
Pay Stubs for the past 30 days.
If you're self-employed, paid by commission
or have income from rental real estate, you'll need...
• Two years
of signed tax returns, including all schedules.
All applicants will need...
• Your mortgage lender and account number or your landlord's name
and contact information. This will
be used to verify your housing payment
history for the past 12 months.
• Most recent transaction summary
of 401k, IRA or Mutual Fund Accounts.
• Copy of the 1st page of
your homeowners' insurance.
Step 3 - Appraisal and Title
• Your lender will want to know what
your house is worth,
so an appraisal is required. Premier Bancorp will arrange
for an appraiser
to contact you for an appointment.
• Your lender will also want
a title report to verify that the current owner has "clear marketable title."
The escrow company will order this (see "The Escrow
Process.")
Step 4 - Approval
• If everything
looks good, you'll received approval for a specific rate, subject to conditions.
Step 5 - Conditions
• Your lender may have some
additional questions about your finances, home, or title; if so, you'll need to
provide more paperwork. Some conditions must be satisfied before your loan documents
can be drawn up. Others must be satisfied before the loan is funded.
Step 6 - Signing loan documents
• You will sign your promissory
note and a plethora of other documents related to your loan.
Step
7 - Funding
• Once everything is in place, your loan is funded;
that is, the money is sent to the escrow company for distribution.
Step
8 - Closing
• The transaction is recorded in the
County
Clerk's office. Congratulations!
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| | Useful
definitions: Appraisal
- An
opinion by a licensed real estate apprasier regarding the fair market value of
a property. Clear
marketable title -A title that is free of liens or legal questions as
to ownership of the property. Credit
Report - A report of an individual's credit history prepared by a credit
bureau and used by a lender in determining a loan apllicant's credit worthiness. Promissory
note - A written promise to repay a loan over a specified period at a
specified interest rate. Visit
our Glossary! | |
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