Save thousands on your next purchase An overview of the loan process - BC Ryan Mortgage Services -use HomeBuyers Advantage Plus Program & save thousands

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.

There are 3 things we need for loan approval. You must meet the income/debt ratios, must have acceptable credit per guidelines & last but not least the cash to close with.

Step one: determine how much you can or want to borrow

This is a function of a couple things. Based on your monthly income & debt we will determine the maximin house payment you can afford. This is called PITI, principle, interest, taxes, & ins. We then take this number & back out an estimate for taxes & insurance the amount left is for principle & interest or PI as we call it. We then apply the interest rate you chose & that tells us the maximum sales price you can buy based off you income & debt. If any of our estimates change the amount you may be able to borrower may increase or decrease. For example, the more of your house payment spent on taxes & ins. the less you can buy & visa versa. Your credit score & loan program will also have a bearing on the lenders qualifying debt to income ratio. 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: your credit report & cash to close

We get your permission to run your credit report. This is important, because most lenders have FICO score requirements on their programs & a good or great score means better rates while a poor or low FICO may not allow you to obtain a loan or may mean a higher interest rate. If there is a problem with your credit we will work with you to resolve it, even if it means you can not purchase a home now, but what you need to do to get your credit to a point where you can purchase.

At this point in the process we've reviewed all your information & determined a sales price & loan program. Based on that we can estimate how much you will need to come to closing with. We will need you to tell us where the funds for closing are coming from & we will need that supporting documentation.

To sum it up .....if your income/debt ratios are there & your credit is acceptable & you have the funds to close....we can obtain loan approval, subject to the property appraising. It's important we determine the loan program & make sure you meet ALL the underwriting guidelines, before we move forward.

At this point we're in the position to be able to include a Pre-Qualification Letter with your purchase offer. This will let the seller know you've been pre-qualified. It gives you buying clout! You're now ready to go find that "perfect home".

Step three: Inspections & Appraisal

Once you've made an offer and it's been accepted, it's time to order your property inspections to make sure there's nothing regarding the condition of the property that would keep you from purchasing it. Once this is done we'll be ready to order an appraisal of your new home. When the appraisal is complete & there is no problem with it the file will be ready to submit to the investor for loan approval. Upon loan approval we move to the closing stage.

Step four: your loan is closed & funded

We will work with the seller & their agent to designate an escrow/title company to handle the closing & 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. After you've signed the closing papers escrow returns them to the lender & they review to confirm everything is in order & if so send a wire to title for funding. The title company will record the DOT & then disburse funds. At this time you will legally own the property.

All that's left is to move in !!