Manhattan
Beach Home Loan Process
See also Key Things to Know about the Loan Process
Finding Out How Much You Can Borrow?
Your maximum loan amount depends on many factors, including:
- How
much you can afford for monthly payments.
- The
appraised value of the property.
- The
amount of equity in your home, if you're refinancing.
- How
much money you have available for closing costs and a down
payment
(if you're purchasing).
- Your
credit history.
Choose
a loan and a lender that's right for you
Contact a lender that you have worked with in the past or
visit our local lenders page.
Apply
for a loan
Depending on the loan you choose, you may complete an application
online, over the phone or in a local branch.
How
can I speed up the application process?
No matter
how you apply, one key to getting your loan quickly is filling
in the application completely and accurately. It's also very
important to attach all the supporting paperwork required.
Use our Application Checklist to help.
Begin loan processing
To process a loan, the lender will go through a series of
steps. Being familiar with the process will help better understand
what happens on our side of the table and will make the process
far less stressful. After receiving your application, the
lender or mortgage broker will:
- Review
your application to make sure the information is complete
and consistent. A Home Loan Counselor may contact you for
additional information or clarification.
- Verify
the information you provided and confirm that all necessary
documents are included.
- Evaluate
your loan information in a process known as underwriting.
Underwriting is a major step in the approval process because
it evaluates your ability to comfortably make your loan
payments.
-
Order
and review an appraisal of the home you are buying or
refinancing. The appraisal confirms whether the property's
value is in line with the purchase price and loan amount.
Understand that in order to finance
or refinance a loan the lender requires documentation
to verify and
substantiate your employment, credit and financial situation
to assure its investors that you have the
ability to repay the money. This documentation may consist
of tax returns, recent pay stubs, bank
statements, verifications of employment, deposit and rent
or mortgage, appraisal, purchase agreement,
divorce decrees, bankruptcy papers and any other information
the lender deems necessary.
What
happens at closing?
The actual closing process varies, but usually includes the following steps:
A closing agent (usually escrow officer) reviews the settlement sheet with you. This document
includes all the final costs for the purchase transaction or refinance loan.
You sign loan documents such as the mortgage or deed of trust, note and Truth-in-Lending statement.
For a purchase loan, you provide a certified check or cashier's check to the closing agent to
cover the down payment and closing costs (See who pays for what during escrow).
For a purchase loan, your lender gives a check for the home loan amount to the closing agent.
If the monthly payments will include amounts paid toward the payment of property taxes and
insurance, an escrow account is set up.
You receive the keys to your new home, along with copies of all the closing documents.
