With so many loan choices out there, the decision can be a very difficult one to make. That's why you need the right lender to help make that decision based on your personality. The truth is there is no wrong or right answer about any of the many other products out there, especially when it concerns your biggest investment and most valued asset...YOUR HOME.

Your personal home mortgage financing decision has to be based on what is right for your family needs, financial situation, the amount of money you want to invest in your home, and how long you intend to live in your home.

So with that in mind we would like to assist you in understanding the mortgage process as well as the more common types of mortgages and the best mortgage loan for you.

The first step - the loan application:
The first step in any home loan financing or re-financing is to fill out the loan application (also called a "Fannie Mae 1003", or "Uniform Residential Loan Application") with an experienced loan officer who will be happy to assist you in filling out the loan application if you should have any questions. He/She will make an appointment to meet with you at your convenience if you desire. Whether you choose to meet with a loan officer or fill in our online application, you will eventually need to provide the lender with some personal and financial information. If you are unable to provide some of the required documents, you can provide them at a later date before your final approval.

Do I have to meet in person with the loan officer?
No! It is possible to complete the loan process without meeting the loan officer in their office. This can be done by doing one of the following:

Filling out an online application form
Printing and filling out the blank Fannie Mae 1003 on the lender's site
The loan officer will fill it out for you by telephone
You may FAX your application to the lender
Or you may mail your application to the lender if you wish

When the loan officer does talk to you, he/she will discuss different possible loan programs available to you that might best meet your needs, the interest rates available, and your financial and property qualifications for the loan program you've chosen.

After I fill out the application, what happens next?
Once you have chosen a loan program and interest rate, the application has been filled out and you have provided the lender with the necessary information, they will then send out verification forms to verify your employment history and bank account information, obtain your credit report, order your preliminary title report from the title company and order your appraisal. Once this information is returned to the lender, they will compile your loan documents and submit them to the underwriter for final approval.

What does it mean when my loan is approved "with conditions?"
Your loan may be approved as submitted, approved with conditions, or a counter offer may be made for your consideration. If there are conditions on the loan in order for it to be approved as submitted, the loan officer will work with you to satisfy these conditions. Conditions might include an explanation letter of some sort, copies of investment documents, copies of divorce papers, or any number of things that may help clarify your qualifications for the loan.

After the loan conditions are met (if any) and the loan is approved, the necessary documents are prepared for closing. The lender will draw up the necessary documents along with any (prior-to-funding) conditions that have yet to be met, and in most cases send them to Financial Title Company to be signed by you. Your escrow officer will arrange for an appointment with you when the loan papers are ready to be signed.

What does "Close Escrow" mean?
The task of closing the loan is normally the responsibility of the escrow officer. This escrow officer at Financial Title Company is responsible for gathering together all of the necessary documents (deed of trust, promissory note, etc.) and making sure all documents are signed. Following the lender's instructions, the escrow officer, then calculates the various prorations, charges and adjustments (interest on your old loan, interest on your new loan, money for impound accounts for taxes and insurance, etc.), makes sure all of the funds are deposited (if any) and provides you with a settlement statement showing all of the costs involved in the loan. The escrow officer also makes sure that all of the parties involved in the loan process are paid after the loan funds. Your loan will then "close escrow" and your new loan will be recorded.

What is a "Right of Rescission?"
After you sign the loan papers, they are sent to the lenders funding department where they do a final check to see that everything is in order. On a refinance, there is a 3-day right of rescission period. This means that you have 3 days from the day you sign the papers to change your mind about following through with the loan. If you have not exercised your right to rescind during the 3-day right of rescission period, the funds are released. On a purchase loan, the 3-day right of rescission does not exist. The loan funds are then distributed to the proper parties and the documents are recorded at the county recorders office. The loan is done!