The Loan Process

The loan process is not as scary as it may seem! There are only a few basics involved when applying for a home loan. We will happily walk you through the entire process. This is the part Where Experience Feels Like Magic

I. Application

There are two ways to approach the application process.

A.	Identify the property first, then start the application process or the recommended approach is to
B.	Start the application process to get pre-qualified for the loan. This saves both your time and the time of the Real Estate Professional with whom you are working Application Process
	1.	Apply on-line through the website
	2.	Over the phone
	3.	Print the PDF version, fill out, and fax it in to (208) 898-9029

The application can seem daunting by the layperson, however we suggest that you do the best you can and we can go over it together to fill in those areas which are questionable.

II. Credit

Your credit and the credit score remain a very important part of your financial history. It has been a thought that everyone should check their credit once or twice per year because of errors in reporting as well as keeping ahead of who reports to the credit agencies. Some would say that your credit score can affect everything from interest rates applied to your credit, to the Homeowners Insurance that is written for you.

A.	We discuss your needs for the Home Loan
	1.	Purchase
	2.	Refinance
B.	Obtain a Credit Report with your permission and examine your options
	1.	We evaluate your debts and the length of time left to payoff said debt.
	2.	We discuss the possibility of paying off debts (refinance only)
	3.	We discuss errors or disputes if any, and resolve to rectify them or talk about the tactics needed to clear things up

III. Debt Ratio

Your debt ratio or DTI (Debt to Income Ratio) simply represents a number calculated by taking your monthly obligation dollar amount and dividing it into your Gross Monthly Income. This calculated number will not only determine your interest rate, but the loan program for which you are qualifying.

A.	No Documentation, No Ratio Program
	1.	Requires High credit score and usually more of a down payment and a higher interest rate
B.	Stated Income / Verified Asset
	1.	Requires High credit score and usually more of a down payment and a higher interest rate. Assets must be verifiable in the bank.
C.	Stated Income/Stated Asset
	1.	A program designed to assess income from an unverifiable source
D.	Full Documentation always gets you the best interest rate. Once the loan program is determined, the application becomes a loan file and we begin the collection of documentation to ready the loan file for submission (See Checklist) Once you have collected the items on the checklist, we ask that you DO NOT APPLY FOR ANY CREDIT DURING THE PROCESSING OF YOUR LOAN. We then order the following from the respective companies or Agencies:
E.	Preliminary Title Report is ordered (IdaHome Loans to order)
	1.	This is a “history search” of the property i.e. liens & encumbrances
F.	Verifications of Rent/Mortgage, Employment and Banks are sent out
G.	Appraisal is ordered (IdaHome Loans to order)
H.	Insurance Agent is contacted for appropriate coverage (IdaHome Loans to order) This information is preliminarily reviewed by us. Always remember that when we review these items, there are circumstances that may lead to additional documentation required.

IV. Submission of Loan to Investors/Banks

Once we have what is known as the complete loan package your file is now ready for the investor/bank to review. Usually no mater how much or how thorough we are with the packaging the investor always seem to request some additional documentation. The investor sends back a notice of loan commitment with any conditions that they want us to address. Once we have cleared these then your loan file is ready for closing.

V. Closing Documents are Requested by IdaHome Loans or Close of Escrow

The documents are sent to the title company by the lender for signing. After speaking with you, the signing date is arranged which best suits your schedules. This happens during business hours, however special arrangements can be made if circumstances arise that might encourage different arrangements. At this time it will be determined if funds are needed from you and that dollar amount will be communicated to you. Cashiers Checks are the norm and they are to be made payable to the Title company. Once the loan documents are signed they are returned to the investor/bank

VI. Funding and Recording of Your Loan

Once the lender has reviewed all the returned loan documents from the Title Company, Usually the lender will communicate to us (IdaHome Loans Corp & the Title Company), as to the status of the transferring of Funds. The funds are transferred to the Title Company from the Investor and it is the Title Company’s responsibility to disburse the funds to the various sources.

A.	Refinance – funds are disbursed to creditors if they are to be paid off
B.	Purchase – funds are disbursed to seller of home and their mortgage holder

The Title Company then takes the Deed of Trust (Security Instrument) to the county recorder for recording. a final inspection by the Title Company is done to the record of the property to ascertain confidence that nothing new has been recorded since the original report was ordered. It is recorded and now becomes part of the Public Record. If you are buying the home it is now yours to move in and if you are refinancing and waiting for money, your money is now available.