How Do I Get Pre-Quaified?
What is a pre-qualification and why is it important? A pre-qualification is an initial step you can take to discuss your different loan options before committing to a formal loan application and credit check.
Think of a pre-qualification as a casual conversation to discuss what your actual options might be. There is no obligation to move forward once you have this conversation. This would mean that a qualified loan officer reviews your financial needs and goals with you and provides an initial decision based on what your current situation is and what you are looking to do. (Or thinking about doing)
At this stage, there is no formal loan application and no fees are charged. It’s basically a way to find out if you “have a shot” at getting a loan based on your situation: credit, income, property type, down payment, etc. Don't worry if you have bad credit because of past financial problems or if you are self-employed and have little to no income documentation. Those factors don't mean that you won't get a loan.
A licensed Loan Officer will review your request and get in touch with you to discuss your options. You can generally expect a response the next business day.
How Do I Apply For A Loan?
Applying for a loan means that you will have to fill out a Mortgage Loan Application, which you will also hear it referred to as a Uniform Residential Loan Application or a 1003. There is a lot of information that needs to be completed on this application. It is important that you fill it out in its entirety. The more complete it is the faster the loan process will be. If it is incomplete that is more time that the Loan Officer must spend contacting you to get the information to complete it to get the process started.
The application will ask for personal and financial information including the following:
• Full name
• Property Information
o If you are refinancing have a current mortgage statement handy
• Residence history (Where you have lived)
• Social security number
• Date of birth
• Employment history
• Income information
• Current liabilities (outstanding debts)
• Current assets (checking, savings, cash, investments, and other items of value)
• List of all real estate you currently own (Fill This Out Completely)
o Type of property
o Present Market Value
o Amount of Mortgages/Liens
o Gross Rental Income
o Current Mortgage Payments
o Current Insurance, taxes etc.
As you can see, a full application requires much more personal information than a pre-qualification or loan scenario request.
To apply for loan, you will need to complete a Standard Mortgage Loan Application.
A licensed Loan Officer can take your application in person or by phone. This can take about 20 minutes, so you will need to set aside enough time to complete it. The more information you can provide your loan officer, the quicker he or she can process your loan request.
To schedule your loan application interview, please call our office at (707) 523-2900.
For your convenience, you can also download a blank application and fill it out yourself.
Click Here to access the secure online application.
What Documents Are Required For A Loan?
The list below gives you an overview of the documents your Loan Officer will request in order to complete your application. The Loan Officer will only ask you for this paperwork after reviewing your initial application and you’ve been pre-qualified based on your requested loan terms.
1. Credit report issued within past 90 days. (The Loan Officer will pull your credit for you.)
2. Income documentation
Allowable forms of income verification:
Most recent paycheck stubs from your employer
Federal Tax Returns (Form 1040)
IRS form W-2
IRS form 1099
Bank statements showing regular deposits
Other documents that can prove your sources of income
3. Identity documents
Valid California Driver License or other government-issued photo ID.
Social Security card
4. Current Appraisal on the subject property (Don't worry if you don't have one, we can make sure that we get an appraisal.)
5. Full purchase contract (For purchase transactions)
What Does The Timeline Look Like For A Loan?
When it comes to alternative money lending, every transaction is unique in its own way. Therefore, the time it takes to close will vary from one loan to another.
The estimated timelines below will give you an idea of how long a typical transaction will take for each step of the loan process. Since unexpected delays can happen in any real estate transaction, we will always communicate any potential delays on your loan processing.
In most cases, a typical alternative money loan can be approved and closed within 3 weeks.
Day 1 - 3
Submit your COMPLETE application to ARC Capital
Initial review and pre-approval
Open escrow if needed
Order appraisal if needed
Day 4 - 6
Review Title Report
Clear items on Title Report if needed
Submit loan to Investor for approval
Prepare and send Loan Docs to Escrow
Day 7 - 8
Sign loan docs at escrow company
Obtain and submit fire insurance to escrow
Lender wire funds to escrow
Record documents at recorders office
LOAN IS CLOSED!