Learn How To Get a Loan
Buying a home, especially your first one, is an exciting but daunting task. For many, it is one of the biggest decisions they will make in their lives. At ACB Mortgage Solutions, we specialize in making first-time and experienced homebuyers feel at ease about their decision. Our dedicated loan officers and client relations managers help guide you through the process from start to finish, making sure you understand everything along the way.
Once you select us to obtain your home loan, you'll be amazed at how quickly and simply the loan process moves. Before you know it, you'll have a mortgage that suits your lifestyle and helps you to achieve the goals you set in our very first discussions.
Your Mortgage: What to Expect
Watch a series of educational videos designed to help inform you of some of the key components of the mortgage process.
Throughout the loan-application process, we provide you with regular updates.
Communication is always key. You can also email or call us with questions, concerns, or new information that we may need to review or discuss. We’re part of your team, here to help you, and we will always provide you with detail and information to help you feel comfortable and understand every step of the process while helping you to get your new home.
Here's an overview of the loan-application process:
The first main step in obtaining a loan is to determine how much money you can borrow. In the case of buying a home, you should determine how much home you can afford even before you begin looking. By answering a few simple questions, we will calculate your buying power based on standard lender guidelines.
You may also elect to get pre-approved for a loan that requires verification of your income, credit, assets, and liabilities. It is recommended that you get pre-approved before you start looking for your new house so you:
Look for properties within your range.
Be in a better position when negotiating with the seller (seller knows your loan is already approved).
Close your loan quicker.
Home loans come in many shapes and sizes. Deciding which loan makes the most sense for your financial situation and goals means understanding the benefits of each. Whether you are buying a home or refinancing, there are 2 basic types of home loans. Each has different reasons you'd choose them.
1. Fixed-Rate Mortgage
Fixed-rate mortgages usually have terms lasting 15 or 30 years. Throughout those years, the interest rate and monthly payments remain the same. You would select this type of loan when you:
Plan to live in home more than 7 years;
Like the stability of a fixed principal/interest payment;
Don't want to run the risk of future monthly payment increases; and
Think your income and spending will stay the same.
2. Adjustable-Rate Mortgage
Adjustable-rate mortgages (often called ARMs) typically last for 15 or 30 years, just like fixed-rate mortgages. But during those years, the interest rate on the loan may go up or down. Monthly payments increase or decrease. You would select this type of loan when you:
Plan to stay in your home less than 5 years;
Don't mind having your monthly payment periodically change (up or down);
Comfortable with the risk of possible payment increases in the future; and
Think your income will probably increase in the future.
By carefully considering the above factors and seeking our professional advice, you should be able to select the one loan that matches your present condition as well as your future financial goals.
Complete your loan application, which can be done easily through our website. To get started, call us or submit an application from the "Apply Now" button below. Please do not worry if you cannot complete the application thoroughly as a loan officer or client relations manager will contact you to review and assist after submission. Typically, we will be able to issue you a pre-approval letter within hours. A pre-approved buyer's purchase offer is much more desirable to a property seller than one which is not pre-approved, and we will customize them for the offer that you place to make the letter specific to the property you are looking to buy.
When you've selected a property and have an accepted purchase offer with the seller, the next step is to update your loan application with your loan officer or client relations manager. At this point, your loan officer or client relations manager will be able to provide you with the documents you need to sign and a list of items we will need in order to process your loan application. Your loan is then submitted to processing, where our internal processors will verify all of the information that you have provided. If any discrepancies are found, either the processor, loan officer, or client relations manager will work to resolve them. This information includes:
Income/Employment Check
Is your income sufficient to cover monthly payments? Industry guidelines are used to evaluate your income and your debts.
Credit Check
What is your ability to repay debts when due? Your credit report is reviewed to determine the type and terms of previous loans. Any lapses or delays in payment are considered and must be explained.
Asset Evaluation
Do you have the funds necessary to make the down payment and pay closing costs?
Property Appraisal
Is there sufficient value in the property? The property is appraised to determine market value. Location and zoning play a part in the evaluation. At the appropriate time, we'll order a property appraisal for you.
Other Documentation
In some cases, additional documentation might be required before making a final determination regarding your loan approval.
Once we receive your signed contract and your file is ready to be underwritten, you are typically three weeks from closing. When your loan is underwritten, we will assist you in meeting any conditions of the loan. We will then coordinate the scheduling of your closing with your closing attorney, and you'll sign the final papers at their office.