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Mortgage
Basics
The Process
IndyMac Bank has simplified the mortgage process to make purchasing
a home a pleasurable experience. The first step to obtaining
a home loan is to complete the on-line application. This will
provide our staff of professionals enough information to get
started on your FREE Pre-Qualification! This is when we review
information provided by you such as addresses, employers,
income and debt. By completing the application on-line you
can find out exactly home much home you can afford and what
your monthly payment will be.
From there, if everything looks good, the down payment, the
interest rate, and monthly payment, you then meet with one
of our friendly staff associates to complete the formal application
along with signing information release forms and proper disclosures.
(See bottom of page for a list of items required at application).
After application is taken your mortgage credit report is
ordered, and your file is turned into our in house underwriting
department for loan approval. During the next 24 hours, an
Approved IndyMac Bank Underwriter reviews your application,
credit, and supporting documentation.
After review of your loan application, we hope to issue you
an approval! That means it's time to go shopping! If your
loan is not approved, it may be suspended. Suspended means
we need additional documents for us to completely evaluate
your file. The last decision the underwriter can make is denied.
If you are in fact denied there may be alternative loans available
that you can be approved for, but it may require more down
payment and/or higher interest.
Once your loan has been approved you can now look for the
home of your dreams! At this time unless you have a buyers
agent, your IndyMac Bank representative can introduce you
to one to show you the current homes now for sale in your
price range and particular area that you request.
After you have toured your dream home and you've decided to
"buy it". You can then make an offer with your buyers agent
to negotiate the best possible deal! After you have negotiated
a sales price and terms, we then go to work for you on approving
your new home.
Inspections are ordered such as your appraisal to determine
the value of the home, a termite inspection, a flood insurance
inspection etc. (see your good faith estimate for all inspections
required). After underwriting has reviewed the property reports
and approved them, we make sure we have received and have
cleared everything requested of you through underwriting.
After underwriting issues a Clear to Close then a closing
is scheduled!
For more details on our mortgage process and current turn
around time please contact the Pickering Group at (623) 551-9360.
Rates
Conventional mortgage loan interest rates move in 1/8 point
increments. FHA and VA rates generally move in 1/2 point increments
Points
Some loans allow you the opportunity to literally purchase
a lower interest rate using discount points. There is always
a standing rate quoted for zero points. A point is equal to
1% of the mortgage amount. Points are negotiable and can be
paid by either the buyer or the seller. You can have the seller
pay your points when negotiated with the offer. For example
$50,000 loan At 8% interest zero point standing rate To get
the rate to 7.5% interest requires 1.5 points. To get the
rate to 7.0% interest requires 2.5 points. 1 point on this
loan equals $500 dollars. To get the 7.5% rate requires $750.
To get the 7.0% rate requires $1,250.
Locking or Floating
You have two choices of either locking or floating your interest
rate. The interest rate reduction based on points will vary
depending on market conditions. At time of application you
will sign a lock or float disclosure. This gives you the choice
to lock your interest rate for a period of time such as 30
days. You are guaranteed the rate you were quoted. If you
choose to float your interest rate, it is similar to gambling,
if rates go up your rate and monthly payments also go up.
However, if the market changes for the better and rates go
down, you win by getting a better interest rate. It's a personal
decision and it's up to you!
Click
to review Mortgage Terminology.
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Licensed Mortgage Banker and/or Authorized Lender in all 50 states and
the District of Columbia