Not to worry. We can help you understand your credit score and what can potentially be done to improve your score. Additionally, we have programs that allow FICO scores as low as 580.

While every situation is different, in general, you will need to provide the following information. Your mortgage advisor will inform you if additional information is needed:

1. Most recent pay stubs representing your earnings for the last 30 days

2. Most recent two years’ federal tax returns (include all schedules/pages)
Include all W2s and/or 1099s and/or K1’s
If self-employed, include a year-to-date profit and loss statement

3. Most recent two months’ personal bank statements (all pages – even if they are blank)

4. Most recent two months’ retirement and brokerage account statements (all pages)

5. If you own any real estate, please include the following for each property:
Homeowners Insurance Information (“Declarations Page”)
Copy of current Mortgage Statement
Copy of Property Tax Statement

6. If applying for a VA loan, a copy of your DD214

This totally depends on your situation and loan programs you may qualify to utilize. Some loans require as little as 3% down or less. Certain VA loans may allow for nothing down. Your Petaluma Home Loans advisor will tailor a program that will best meet your needs.

Proceeds from a cash out loan are typically used to consolidate debt, make home improvements, purchase personal assets, and to pay for education expenses. However, we’ve seen all sorts of purposed for pulling equity out of homes.

The Loan Process
1. Get Pre-Approved
This is the time to get in the know. A pre-approval will give you an advantage when you find your perfect home. We can tell you what you need to get pre-approved, so you know the exact loan amount you qualify for, what your monthly payment will look like, and how much taxes and insurance will be. With a pre-approval, the loan process will be smoother and your offer will be stronger.

2. Loan Application
Your application will provide a complete picture to loan investors of your assets, debts and what you are buying. It will take into account documents such as pay stubs, proof of income, tax returns, employment history, and information on all debts, assets, and sources for down payments. Don’t worry, we will request these documents as applicable for your loan application so that you can be fully prepared.

3. Select Your Loan Program
Fixed rate? Adjustable? FHA? There are multiple loan options that may fit your unique needs, and we can help you choose. Are you looking for the consistent rates and payments that a fixed rate loan can provide? Do you want the short-term benefits of lower rates that an adjustable rate loan can bring? Our extensive portfolio of loan options means you have more options available to get just what you need.

4. Processing and Underwriting
Your loan has specific investor guidelines that must be met, and an underwriter will review your documents to be sure that you meet them. While an underwriter reviews your file, an appraisal will be ordered on the home. Additional information may be requested, so don’t panic if you have to turn in more documents. That’s just the underwriter working hard to get your final approval.

5. Loan Approval
Before your loan is approved, you will receive pre-approval and a list of closing conditions that need to be met. These conditions can include verification that your employer is current and proof that homeowner’s insurance has been obtained. Once closing conditions have been satisfied, the underwriter issues a clear to close. Congratulations, your loan has been approved!

6. Close the Loan
With an approved loan, you are on the home-stretch towards closing. The lender will send closing documents to a title company that draws up paperwork and arranges for signing of documents. Once the documents have been signed and funding conditions have been met, the title is recorded and the process is complete. You are a proud owner of your new home, and the keys are yours!

*Tips for Success
It is extremely important that you don’t make any major life changes immediately before or during the loan process.
Don’t quit your job, change jobs, or become self employed.
Don’t make any large purchases like a vehicle or furniture.
Don’t co-sign on any loans for someone else.
Don’t spend money that you have set assigned for down payment or closing costs.
Don’t make any changes to your credit like opening new cards, spending on cards, or even closing accounts without guidance from a professional.
Don’t panic! The loan process can seem daunting, particularly if it is your first time. We will help you understand what is needed and to get you to the finish line.