John A. Manglardi Jr.

With a little knowledge and preparation, you can enjoy a fast and easy home financing experience.

Reading up on mortgage terminology and trying your hand at calculating your monthly mortgage payment are good places to start. Next, you should familiarize yourself with the loan process below so you know what’s required and what you need to do to get from application to closing.

The 6-Step Loan Process

1. Get your documents together.

The following checklist will help you gather the documents you’ll need to apply for a home loan.

• Residential loan application, aka Form 1003, which includes a Fair Lending notice, loan info sheet, and credit authorization
• Previous 2 years’ W-2s
• Previous 2 years’ tax returns
• Most recent rental agreement (if you own rental units)
• 3 most recent bank statements
• Most recent statements for mutual funds, IRA/401(k), or stock accounts
• Settlement agreement and divorce decree (if applicable)
• Bankruptcy filed (if applicable; schedule of creditors, discharge notice, and filing)
• A letter explaining how you will use the loan proceeds (for cash-out refinances)
• Your Green Card or H-1 or L-1 visa (for non-U.S. citizens)
• The first mortgage note (for second mortgages

2. Get pre-approved for a mortgage.

You may come across terms like pre-qualification and pre-approval when researching mortgages. While they sound similar, they’re actually very different. When it comes to buying a home quickly, one is far better than the other.

• Pre-qualification determines your ability to repay a loan based on asset and income information you provide. Pre-qualification often takes only minutes online or by phone. While it can give you an idea of what you may be able to borrow, it does not involve a detailed analysis of your credit and finances.
• Pre-approval is a more rigorous process where your information is reviewed and verified by an underwriter. This involves an analysis of your financial status and credit history. With a pre-approval, you’ll be able to set your budget, negotiate confidently, and close faster.

3. Shop for mortgages and rates.

Many types of loans are available with different requirements and benefits. Your experienced, licensed CrossCountry Mortgage loan officer can help you find a loan product that will best suit your needs based on your current financial situation and future goals.

For instance, if you plan on selling your home after only a few years, an adjustable rate mortgage (ARM) might be a viable option. If you plan on living in your home for a long time and you prefer consistent monthly payments, you may want to consider a fixed rate mortgage.

4. Apply for a loan.

You can start the process today by:

• Calling us at 877-245-8383.
• Filling out a pre-qualify form.
• Requesting a free rate quote.

5. Get approved for a loan.

After applying for your mortgage, the loan review and approval process begins. We will verify your credit, employment history, assets, property value and more. Check out our Home Buying Guide and follow the guidelines below to help your loan move smoothly and quickly through processing and underwriting.

• Complete your application thoroughly.
• Respond promptly to requests.
• Disclose all other loans and credit.
• Be accessible when scheduling a closing date.
• Don’t make any major purchases.
• Don’t move money around in your accounts.

6. Close on your loan.

Almost done! Once your loan has been approved, we’ll reach out to you to schedule a closing date. You’ll review final documents and make sure the rates and amounts are what you have agreed to. You’ll also pay closing costs and your down payment with a certified or cashier’s check from your bank. Bring your photo ID and Social Security card to this meeting. Once your loan has been funded, you’ll get the keys to your new home!

Let’s do this!

Owning a home is an exciting and fulfilling aspect of life, and we want your home financing experience to be positive and memorable. We hope the knowledge you’ve acquired in this article has given you the confidence to take the next step. Start the conversation with your friendly and helpful CrossCountry Mortgage loan officer today!

Building equity is one of the best parts about owning your own home. The option to refinance the loan on a home that has accumulated equity is a financial advantage that means different things to different people. For some homeowners, a substantial amount of equity feels like having a large savings account. Others see refinancing as a way to pay off some of their debts sooner.

At the end of the day, the decision to refinance usually leads back to achieving your life goals. That's why it’s important to consider all of the available options so you can settle on the one that best suits your specific needs. Your licensed CrossCountry Mortgage loan officer can give you all the information you need, and the answers to two questions will influence your final choice.

Question 1: Cash-Out Refinance or a Home Equity Loan?

One primary objective of cash-out refinancing is to siphon off hard-earned equity and apply it to things that improve your quality of life. Among the most common usages are home improvements.

Homeowners who use the cash-out option for home upgrades treat equity like a bank or investment account they can draw from. After all, you put the money into the home, so why not put it to work? By refinancing and pulling a portion of the equity back in cash, you may be able to afford an amazing new bathroom, outdoor patio, or other home enhancements.

A well-planned cash-out refinance can leave your monthly mortgage payments where they are or even bring them a tad lower. Your lifestyle can actually improve and monthly bills aren't negatively affected.

Home equity loans can achieve quality of life goals as well, but they are likely to create an uptick in your monthly expenditures. The two common types are:

• HELOC: A home equity line of credit offers homeowners a predetermined borrowing limit. These generally allow people to borrow against the credit line for 5-10 years. The repayment terms can run 10 years or longer. This is very similar to having a second mortgage.
• Home Equity Loan: This standard type of loan sets repayment terms between 5-15 years in many cases. This is, in effect, a second mortgage.

When deciding which of these options could be a good fit for your situation, consider your monthly revenue comfort level against the value of paying off your home. A cash-flush homeowner may opt for a HELOC or home equity loan with an eye on paying off the property. But quality of life improvements can also be possible by tapping into that home equity piggy bank and maintaining the monthly status quo.

Question 2: Shorten the Loan or Lower the Payments?

Many homeowners consider going the refinancing route when interest rates dip. Remember, the purpose of refinancing is not necessarily to get the lowest interest rate possible. The goal tends to be either shortening the life of the loan or lowering monthly payments to free up personal wealth.

Equity can play a powerful role in changing the length of your mortgage from 30 years to 15 years, a move that can be timed to coincide with your retirement or other life factors. Even a slightly higher monthly payment can help achieve long-term goals.

For individuals in need of funds immediately, a refi can quickly free up cash that could be used to tackle a variety of expenses: braces for the kids, a much-needed vacation, or even to help you pay off other debts you might have. You may have to extend the length of your loan a few years, but you can gain peace of mind knowing that today’s needs are being met.

Refinancing can reduce your monthly payment initially, but that doesn’t always mean it will save you money in the long run, as total finance charges may be higher over the life of the loan.* Fees and interest rates also need to be considered when calculating if your new mortgage will save you money over the entire life of the loan. A licensed loan officer will be able to help you decide if refinancing is right for you. We’ll help you calculate at which point you will break even and begin to save.

We’re Here to Help!

Throughout the refinancing process, it’s important to remember that you will likely be balancing one aspect of your financial portfolio against another. This is not a bad thing, because the point of any refinancing strategy is to successfully identify and meet specific life goals, which owning a home helps you do. Your licensed CrossCountry Mortgage loan officer can help you do those things as well, so start the conversation today and find out which refinancing option is right for you!

These 3 mortgage options keep your out-of-pocket costs to a minimum.

For most people, home ownership is a smart financial decision that also offers a sense of pride, security and peace of mind. Many of those same people, especially first-time home buyers, sometimes delay or avoid applying for a mortgage because they don’t have enough money to pay the fees and the down payment, or they don’t want to part with their entire nest egg to do so.

Does this sound like you? Don’t disqualify yourself from becoming a homeowner without first exploring the different mortgage options that allow you to buy a home with the least amount of cash.

While a mortgage allows you to pay for your home over time, there are two out-of-pocket costs that are due at closing:

• The down payment is a percentage of the home’s sale price that you pay up front. The more you are able to put down, the lower your monthly payments will be over the course of the loan.
• Closing costs are administrative fees charged as part of the home financing process that cover the loan origination, appraisal, credit report costs, taxes and insurance, title, recording, and funding for specific programs.

If you’re worried about not having enough money for these out-of-pocket costs, or you’re concerned about draining your cash reserves to cover them, you can put your mind at rest by speaking to your licensed CrossCountry Mortgage loan officer. There are several loan programs that not only have lower down payment requirements, but also give you options regarding your closing costs. These programs include:

FHA Home Loans

With an FHA home loan, you can finance your closing costs or negotiate with the seller to contribute toward them (up to 6% of the lesser of the home’s sale price or appraised value). FHA loans also have a lower down payment requirement of 3.5%.

USDA Rural Home Loans

The great benefits of a USDA rural home loan include 100% financing (meaning no down payment is required) and flexible income and credit requirements for those looking to buy outside of urban areas. You also may be able to finance the closing costs associated with a USDA rural home loan or negotiate with the seller to pay them for you.

VA Home Loans

A VA home loan also provides great benefits, such as 100% financing and no mortgage insurance for those who have served in the U.S. Armed Forces. With a VA loan, the only financeable closing cost charge is the VA funding fee; all other closing costs must be paid at closing. However, the seller can pay up to 4% of your closing costs (only certain fees fall under this 4%).

Take the next step today!

We’re always happy to discuss your specific situation, understand your goals, and walk you through every step of the process to get you qualified for a loan that’s right for you. If you want the best of both worlds—buying a home and keeping your cash—your licensed CrossCountry Mortgage loan officer can help you make it happen. Start the conversation today!