Second Step - Selection

Loan Product Selection

Your Loan Officer will guide you through the process of choosing the best loan product from one of the hundreds available.  This is accomplished with a software system called “automated underwriting” or AU. Once the Loan Officer has your loan application completed, the AU can run many different loan scenarios that mimic actual loan submissions to Lenders because the software understands each Lenders unique underwriting guidelines. The automated underwriting is done without actually submitting loan documents to any lenders and the process is completed within 24 hours. Automated underwriting is an important part of the process because it allows the Loan Officer to compare all products against each other in a real-time setting.  Once AU is completed, your Loan Officer will discuss the various loan options and you are ready to choose the best loan product based on your mortgage needs.
Here are a few items you need to consider before selecting a product:

1.    How long do you plan to own the home?
2.    What is your financial outlook for the near-term and long-term?
3.    Do you have future financial obligations (such as college, retirement, elderly care) that might limit your future ability to meet debt obligations?
4.    How comfortable are you with a payment amount that changes over time?
5.    What is your liquid asset position? Are you willing to make a larger down payment?
6.    How is your credit history?
7.    Are you a first-time homebuyer?
8.    Will you have adequate funds available after debt payments for retirement funding and other needs?

Interest Rate Lock

You have the opportunity to establish an interest rate guarantee or "lock" the interest rate during the loan process.  Keep in mind that interest rates may change somewhat each day. Only you can make the decision to lock the interest rate on your loan.

Keep in mind that interest rates can change at any time and without notice. Rates generally change a little bit each day, sometimes better - sometimes worse. Sometimes rates can change several times a day. If you know that the financial markets are going through a particularly volatile period, you may want to check with your Loan Officer periodically to make sure rates are at a comfortable level.