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Loan Process
The Basic Steps
Dynamic Capital is committed to extraordinary service throughout your loan process. Our experienced loan officers deliver hands-on and personalized service at each step of the way. So, whether you are buying your first home or refinancing your sixth, your loan officer will guide you and keep you updated on your loan status — available to answer your questions quickly. As you would expect, refinancing has fewer steps because you’re already living in your dream home and have no need for a pre-approval.
It’s the simple things — like returning your phone calls promptly, holding appointments at the location of your choice, and picking up documents — combined with our expert team that make our service special.
Choose Dynamic Capital
At Dynamic Capital Mortgage, we deliver the loan programs, rates and expertise to get the most out of your money. So, you get the home that you want today. You also get our commitment to extraordinary service throughout the entire process. Because your mortgage is among the largest personal financial decisions that you’ll make, it’s the kind of service that you deserve. That’s what makes Dynamic Capital your preferred mortgage lender.
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One Step at a Time
1. Determine how much you can afford
By understanding upfront what you can afford to borrow, you can focus on homes in the right price range. Your DCM loan officer will quickly help you determine your borrowing capacity. Three numbers are critical here: 1) your credit score; 2) preferred amount of your down payment; and, 3) your total amount of monthly debt payments as a percent of your monthly household gross income.
2. Investigate loan programs and rates
Step 2 often happens at the same time as Step 1, because different loans enable different levels of borrowing capacity. For example, interest-only programs give you more home-buying power because the monthly payments are lower, and low-down payment options help you to get more of your dream home now without putting as much cash in. Your DCM loan officer will help you evaluate the variety of options — and the trade-offs among them — to meet your specific financial objectives. Interest rates vary by loan type. For example, rates for adjustable-rate mortgages (ARMs) are typically lower than those for fixed loans because you are accepting the risk of your rate changing over time. Rates for most loans change everyday, so you will get an idea of what your rate will be now and will know your exact rate when you lock.
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| You Should Know |
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To help you feel comfortable with one of your largest personal financial decisions, your DCM loan officer can provide, around the time of the rate lock, a Good-Faith Estimate of your costs to secure your financing, including any points, closing costs and escrow requirements. In the loan package at closing, you will get a Settlement Statement that, again, details these items, among others. They are numbered according to an industry-based standardized system and correspond to those on the Good-Faith Estimate. Changes may occur between the two documents before the closing. For example, the pay-off amount of your prior mortgage may be higher because your latest mortgage payment was not processed in time, or your tax escrow may be higher because the closing date fell into a new tax quarter.
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A rate lock holds your interest rate for a fixed period of time until closing. Typical lock windows range from 30 to 90 days. For example, if you lock with a 30-day window, you need to close within 30 days to get that rate without risk of late fees. Rates may be lower for the shorter windows, as you would expect, because there is less risk of interest rates increasing.
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3. Get pre-approved for your loan
In today’s competitive home-buying environment, you are in a stronger negotiating position if sellers know you are already pre-approved for your loan. To secure a pre-approval letter, you will fill out a loan application nearly to completion, setting in motion the checking of your credit, income, assets and liabilities. So, you will need to gather and share your recent financial documents with your DCM loan officer, who will gladly help you with the application. At DCM, we can pre-approve you for your loan in as few as two hours.
4. Find your dream home
Congratulations! You have found the home that’s right for you, with an accepted bid and a signed contract to purchase. At this point, you will call your DCM loan officer to set your financing in motion.
5. Lock your rate
When you lock your rate, you are making a choice to finance your home with a specific loan program and interest rate. All this takes is a quick phone call to your DCM loan officer. A $500 fee, fully refundable at closing, is charged to your credit card to hold your interest rate and to begin the required appraisal, title and underwriting work. You can typically expect the time between lock and final approval to be two to three weeks.
6. Complete your application
The good news for homebuyers is that if you have already been pre-approved, you have only a few remaining pieces of information to share, including the price and details of your chosen property, the final loan amount, your closing date, and the signed contract to purchase. If you are refinancing, you will fill out a loan application fully now, setting in motion the checking of your credit, income, assets and liabilities. Your DCM loan officer will gladly help you complete the application, which normally takes about 30 minutes. So, you will need to gather your recent financial documents. The required documents will vary based on your loan program.
7. Complete appraisal, title & underwriting
A lot of work happens during this step. We hire an appraiser to review your property. As a lender, we need to know that the market value of your home can support your loan. Also, a lawyer ensures that the ownership title of the property is free and clear for transfer to you with the financing. Then, our expert team reviews this information, in combination with your application and financial documents, to ensure your ability to repay the loan. That is what underwriting is all about.
8. Get final approval
Your loan gets its final approval when your complete loan package clears through the underwriting process. Your DCM loan officer will call you immediately upon getting word of the approval and follow up with a commitment letter that documents it, if your loan is for a purchase. For a refinancing, your loan officer will call you and schedule the closing at a time and location that are convenient for you.
9. Close your loan
The closing, typically a one-hour meeting led by a lawyer, is where you take ownership of your new home and sign the final loan documents for your purchase or refinancing. Here, you will bring a certified check to “settle” any costs associated with your mortgage. Your DCM loan officer will let you know that amount in advance, of course. The Settlement Statement is an important document in the loan package at closing and will detail the key figures in your financing, including the pay-off amount of your prior mortgage (if you are refinancing); your down payment; your escrow requirements for mortgage interest, insurance and property taxes; any points or closing costs that you may have opted to pay; and, your refunded lock fee from DCM. Congratulations on your newly financed home!
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