Apply For a Home Loan Santa Clarita

Are you overwhelmed on getting a new Santa Clarita home loan? Always dreaded going to the auto dealership to buy a car and feel the same feeling about trying to apply for a home loan Santa Clarita. Good News…our experts will give you some solid advice to help get you thru the process fast and make it easy for you.

There are two secrets to making the process breeze thru to approval. First, choose your lender carefully. We will discuss that later. Second …get prepared. No matter if you are getting a new loan or doing a home refinance Santa Clarita, having a good solid file of the required documents is needed.

Here is what you need:

Don’t put off a possible new mortgage any longer, or you’re just wasting money. Chances are very good that with a new mortgage, you can pay a significantly lower amount of money every month. Look into all your options, shop around, and then decide on the terms that will suit your budget well, and save you the most cash!

• Get a credit report. If you have a co-borrower make sure the report is a combined report on both of you. You should have a score over 620. If you have any collections or disputed items they will need cleared before you will get any approval. Never let a Lender run your credit until you have chosen the 1 you are going with.
• Check your Debt to Income– The DTI is a prime factor in getting approved. Most reports will sum up what your monthly payments total. Add the principal, interest, insurance, taxes and HOA to this to get your total monthly debt payments used for calculation. If the total is over 50% of your last 2 years tax return reported income average, stop now and get your debts reduced by paying off revolving debt.
• 2 years of tax returns- because your income is calculated off the tax returns- not your paycheck stubs, you need 2 years AND the W2’s or 1099’s for each year. All Borrowers.

Down Payment

If a 20% down payment is out of your league, do some shopping around. Different banks will have different offers for you to consider. Terms and rates will vary at each, some will give a lower down payment, but a slightly higher interest rate. Look for the best mix for your current situation.

• Recent Pay stubs- once your 2 year income is averaged you need to show you are currently earning at least that amount or more. The pay stubs will support that.
• Hazard Insurance- if you are refinancing, just supply the 1st page of your hazard insurance. If buying, get a written estimate for coverage of the home you’re buying.
• Mortgage or Rent statements- To get a new Santa Clarita home loan you will need to prove you have made the last 12 months of mortgage or rent payments on time.

Before getting any mortgages Santa Clarita, study your credit history. Good credit is what can help you get a mortgage. Obtain copies of your credit history and scores from the three major credit-reporting bureaus. Study your reports carefully to ensure that no issues or errors must be resolved before you apply. Many lenders need a minimum score of 680, which complies with Freddie Mac and Fannie Mae’s guidelines. Most lenders want to avoid scores that are lower than 620.

• Contact list– put together a contact info list. Begin with you and all phone numbers, emails ect to reach you. Same for co-borrower. Now add all employers and who to contact to verify employment. No cell phones for employer. If you are self-employed, be sure to send corp tax returns with the personal ones.

Mortgage Rates Santa Clarita

Once you have the documents ready it is time to select your lender. Sometimes a lender offering the lowest mortgage rates Santa Clarita is not the best choice. MOST IMPORTANT- pick a lender who will come to you or you can go sit down with face to face. When you run into issues, you will not want the old phone call stall…you will want to go face to face to discuss what is holding up your loan.

It’s OK to call around to get an idea of rates and even a few actual quotes. But, choose local lenders.If you can afford a higher monthly payment on the house you want to buy, consider getting a shorter mortgage. Most Santa Clarita mortgage loans are based on a 30-year term. A mortgage loan for 15 or 20 years may increase your monthly payment but you will save money in the long run.

To get the best rates, select an experienced lender who can provide you with 3 recent loans they have closed that you can call to hear the borrower’s side of things. Ask how the service, the rates and most importantly how they delivered vs what they promised. You will quickly find the lender you want. Set up an appointment to sit with them and discuss your situation. If they need to run your credit, it is OK at this point.

Your organization and up front effort will usually reward you with the Santa Clarita lowest mortgage rates.

Apply For A Home Loan Refinance Santa Clarita

Always read the fine print before you sign a home mortgage contract. There are many things that could be hidden inside of the contract that could be less than ideal. This contract is important for your financial future so you want to be sure that you know exactly what you are signing.Once you complete the lenders application, they will issue you a set of initial disclosures. These are not loan documents. They are just disclosures to authorize the lender to get going on your new loan.

Once those are signed by you, the appraisal can be ordered. Take some time to go thru the disclosures with the lender. You will have questions and who better to answer them.In the disclosures will be a GFE or Good Faith Estimate. That will define your cost, the rate and the monthly payment. It is only an estimate at this point. Although it is subject to change, usually it does not by much so read carefully.

Every time you apply for mortgage Santa Clarita you will get a new GFE from the lender.Your new home mortgage Santa Clarita should take about 2-3 weeks from start to finish. Ask your lender to please run a DU Approval and give it to you at your 1st meeting. This is a Fannie Mae desktop approval system that will show areas requiring focus before the loan is funded.

Santa Clarita Refinance

If you are doing a Santa Clarita Refinance, still get a DU Approval.Know your credit score and verify its accuracy. Identity theft is a common occurrence so go over your credit report carefully. Notify the agency of any inaccuracies immediately. Be particularly careful to verify the information regarding your credit limits. Make all your payments in a timely manner to improve your score.

In summary, now you have some great advice how to apply for a home loan Santa Clarita and get quick approval and fast funding. The lender will need a few additional documents but ask them to review and give you the list at the 1st meeting. Get them into the lender the same day. Good luck.