Mortgage Lender Southern California

A mortgage is an accord secured by the collateral of the real estate property, which the borrower is obliged to pay back in a specified period of time with a set of monthly payments. These loans are basically used by an individual to make real estate purchase without paying the whole value of the property at once. The borrower repays the loan in monthly installments plus interest until they owns the property. Only after paying the full amount of the loan the borrower will have the claim over the property.

Fixed-Rate Mortgage 

The interest rate of the Fixed Rate Mortgages remains the same through the whole life span of the loan. Fixed Rate mortgages are basically lasts for around 15 or 30 years and you will make the same monthly payment for the entire term of the loan. There is a predictability aspect in the fixed rate mortgages as the borrower will be aware of the fact that the payment is going to be same for every month and they do not worry about the future higher payments.

Adjustable-rate Mortgage

An adjustable rate mortgage lender in Southern California has the same interest rate for the initial term of the loan, after that the interest rate changes with the market interest rates. The monthly payments are not predictable after the initial term as that was in Fixed Rate mortgage. Although the interest rate in the initial term is below market rate, making the loan more affordable.

Mortgage loan Process

Finding a new home can be very exciting, although the process of mortgage loans  can be overwhelming for some. Therefore you need to be aware about the various key steps that are involved in the loan process.

Pre-Approval

To make your home buying experience more ease, a pre approval process is required now-a-days. In the pre approval process the lender basically looks for the basic financial details like the credit score, your monthly income, credit history and previous mortgage records. One of the best things to do before a pre approval is to gather up all the documents needed for a mortgage.

Loan Application Process

While applying for a mortgage, a few extra documents are needed in order to process your application. The documents should include your employability details, monthly income details, the information about the various assets that you own, and the information about the financial blemishes (like bankruptcies, foreclosures), if you had any in the past.

All these documents are pulled together in order to find the Loan Estimate. It basically includes information about the closing date, monthly payments and interest rate of the loan. Loan estimate usually predicts the cost associated with the mortgage and it also contains the information about the pre-payment penalties.

Loan Processing

The loan processors basically gather all the documents about the borrower and the property, and then they process all the information in the loan file like credit report, verifying employment (VOE), Bank deposits and gather a systematic package for the underwriter.

Loan Underwriting

The Underwriter plays a key loan in the mortgage approval process. The Underwriter checks to see if the borrower and property match the eligibility requirements of the loan for which the borrower has applied. They evaluate all the documents prepared by the loan processor and decide whether to approve or reject the loan. After your loan is approved the interest rate of the loan is locked.

Closing Process

The Closing is the moment for which you have been waiting. It is the time to sign a number of documents and to seal the deal. In the Closing Process, the Southern california mortgage lender actually funds the loan in exchange for the title of the property. This is the point where the loan process gets completed and the borrower actually buys the property.