Finance

Nationwide Lending

The loan process for a purchase

An overview of the loan process

Make no mistake, there's a lot involved in getting a mortgage loan. You wouldn't be here on our website if you could fill out a one-page application and get the best loan for you funded the same day. What we do is most of the heavy lifting for you, so you can concentrate on what's important -- preparing to move into your new home, saving money, or making plans for your home equity line of credit.

There are four main steps involved in getting a loan. You'll see that we've made your part in them as easy as possible, and we do all the work! That's what we're here for.

Step one: determine how much you can borrow
This is a function of a couple things. How much of a monthly payment can you afford? And given your unique credit and employment history, income and debt, and goals, how much will a lender loan you? The first part you can get a rough idea of by using the calculators on our website. We'll also help you through different scenarios by asking a few simple questions. Based on standard lender guidelines, we'll get you a good idea of what kind of terms and loan program you can expect to benefit most from.

Step two: pre-qualify for your loan
This is where the rubber meets the road and you save the most money. You supply information about your employment, your assets, your residence history, and so on. We get your permission to run your credit score. When we review all this information we give you a Pre-Qualification Letter. Handle it with care -- to a home seller, it's like a suitcase full of cash! Your realty agent will use your Pre-Qual (as they may call it) to make the best offer on the home you choose, and the seller knows you're pre-qualified. It gives you buying clout! And while you're picking out the home that's right for you, we're busy finding the loan that's right for you.

Step three: apply now! We make it easy
Once you've made an offer and it's been accepted, it's time to complete the loan application. It couldn't be easier, and you can do it online, right here at our website. When the time is right, we'll order an appraisal of your new home.

Step four: your loan is fundedYour realty agent and the seller's will work together to designate an escrow/title company to handle the funding of your loan once it's approved. We'll coordinate with the escrow company to make sure all the papers your lender will need are in order, and you'll sign everything at the escrow/title company's office.

You've answered a few questions, given us some detailed information, applied online, and next thing you know, you're moving in! We're in the business of mortgage loans -- so we do most of the work. Doesn't that make sense?


The loan process for Refinance

Set clear financial goals. Are you refinancing from an adjustable-rate mortgage to a fixed-rate loan? Do you have other goals? In any event, have a clear picture of what you hope to achieve with a refinance

Get multiple rate quotes. Request quotes from at least three lenders within a two-week period. This reduces the impact on your credit score

Compare rates and fees. Studies have shown that those who request at least three quotes save an average of $300 a year on their mortgage payments

Submit the paperwork. Gather your loan documents and complete your application

Schedule a home appraisal. Most lenders require a refinance appraisal to establish your home’s current market value

Close the refinance loan. You’ll need to pay refinance closing costs. Although, you may be able to roll those costs into the loan to avoid paying them upfront

Frequently Asked Questions

  • When should I refinance?

    Refinancing makes sense if the monthly savings is positive or you want to take cash out. We will give you the options available for any scenario.

  • What is an APR?

    The annual percentage rate (APR) is an interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage because it takes into account points and other credit costs. The APR allows homebuyers to compare different types of mortgages based on the annual cost for each loan. The APR is designed to measure the "true cost of a loan." It creates a level playing field for lenders. It prevents lenders from advertising a low rate and hiding fees.


    The APR does not affect your monthly payments. Your monthly payments are strictly a function of the interest rate and the length of the loan.


    Because APR calculations are affected by the various different fees charged by lenders, a loan with a lower APR is not necessarily a better rate. The best way to compare loans is to ask lenders to provide you with a good-faith estimate of their costs on the same type of program (e.g. 30-year fixed) at the same interest rate. You can then delete the fees that are independent of the loan such as homeowners insurance, title fees, escrow fees, attorney fees, etc. Now add up all the loan fees. The lender that has lower loan fees has a cheaper loan than the lender with higher loan fees.


    The following fees are generally included in the APR:


    Points - both discount points and origination points

    Pre-paid interest. The interest is paid from the date the loan closes to the end of the month.

    Loan-processing fee

    Underwriting fee

    Document-preparation fee

    Private mortgage-insurance

    Escrow fee

    The following fees are normally not included in the APR:


    Title or abstract fee

    Borrower Attorney fee

    Home-inspection fees

    Recording fee

    Transfer taxes

    Credit report

    Appraisal fee

  • Why choose Amortgage.com?

    36 years experience - One application -  Nationwide access to multiple lending sources including Jumbo, Conforming, Portfolio, Construction, Fannie Mae, Freddie Mac, Jumbo, Conforming, FHA, VA, USDA, DSCR, Alternative Documentation.

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