Every first time home buyer in Redding Ca looking to get a loan should have realistic expectations of what to expect durring the escrow process.  Normally the escrow period is anywhere from 30 - 45 days.

Not only do we do home loans in Redding Ca but we also do home loans in all of California.  Including Chico Ca.  Our goal is to close in as little as 30 days.  Im going to list the process from beginning to end for a first time home buyer and explain each level in detail.  Remember to keep in mind that when buying a home we are lending a large sum of money.

The 1st Step:  Getting pre-qualified

Getting pre-qualified as a first time home buyer is very important before going to look at property.  Most good real estate agents will not want to show property unless your financing is in order.  When we pre-qualify our borrowers we review credit, Income, and Assets.  After reviewing this information we can determine right away how much you will qualify for.

Our goal is to meet the borrowers goals with monthly payments.  In the pre qualification appointment we find out what payment is most comfortable.  The last thing we want, is to qualify someone for more than what they want to spend.

We also go over the closing costs of the loan.  We go over the options to have the closing costs paid by the seller.  We will always recommend having the seller pay for all the closing costs for 1st time home buyers.

The 2nd Step:  Making an offer

Now that your are qualified your can start making offers.  This step requires using a real estate agent.  We highly recommend using an experienced real estate agent.  Using an agent that is NOT EXPERIENCED  can be very costly.

The 3rd Step: After offer is accepted.  Providing all required documents to lender

After the offer has been accepted it is not time to start working with your trusted lender.  This step is when the borrower brings in all the documentation that is required by the bank.  This step is extremely important for the loan to close on time.  Please note that the paperwork and required documentation is very detailed in what is required.  Borrowers sometimes get frustrated with the amount of documentation & paperwork required.   Please keep in mind that lending today is way different then even a couple years ago.  There is a reason for every document.  Here is the  list of documentation that is needed.  Each borrowers financial picture is different so at times different documentations will be required:

? Provide a clear copy of your Social Security card (FHA loans only). If you do not have this, please provide copy of your Passport or other State issued ID.

? Provide a clear copy of your Driver's License. If you are a permanent resident, please provide copy of your permanent resident card front and back.

? Two most recent monthly asset statements to be used for this loan (checking, savings, 401k, IRA, stocks/bonds, etc.). Please be sure to include ALL PAGES, EVEN IF BLANK. If statements are quarterly, please provide most recent quarterly statement, all pages. NOTE: Online statement printouts must show; bank name, account number, borrower name and borrower address to be accepted.

? Most recent Pay Stubs covering a FULL ONE MONTH PERIOD for all borrowers.

? Provide Copies or your 2 most recent W2's.

? Provide copies of your last 2 years Federal Tax Returns (all schedules), all pages. If you have not completed your most recent year's Taxes, please provide a copy of the extension form.

? If Self Employed, please provide your most recent Business Licenses and all corporate returns with all schedules. If Business License is not available please provide a CPA letter.

? If you currently own any property or hold additional mortgages (including Equity Lines of Credit), ALL OF THE FOLLOWING must be provided for ALL properties owned: Current Mortgage Statements, Homeowners Insurance Declarations Page, current Tax Bill. If there is an HOA, please provide amount of HOA monthly dues.

? Letter of explanation for any deposit that exceeds normal payroll.

? Paper trail of any money transfers with supporting documentation.

? Copy of cancelled earnest money check.

? Letter of explanation if moving to another primary residence. Explain disposition of current home and the motivation for occupying the new residence. (i.e. bigger home, school districts, closer to work, medical reasons, size of lot, etc.)

The 4rth Step:  Disclosures, Appraisal, & Rate Lock

After the offer is accepted and we have received the written contract we then request the exact title fees from the title company.   This process can sometimes take 2 -3 days after the accepted offer.  If the title company is out of town we can wait for up to a week after the offer is accepted.

Once we receive the exact fees from title it is time to sign the disclosures.  The disclosures are the documents that has all the terms & conditions of the loan.  Interest Rate, Loan Fees, Payment, Loan Term, Cash to close exc..  We like to go over these documents in person so that the borrower is fully away of all terms of their new loan.

After signing the disclosures it is time to lock in the interest rate and order the appraisal.

The 5th Step:  Employment, IRS, Social Security Verification

Once we receive the signed disclosures it is time for the loan processor to review the file, and request the verifications.  The verifications can take up to a week to order and receive.

Employment Verification:  This is a document that the borrowers employer will fill out to verify the income, bonus, commissions exc... This is what the underwriter uses to help know exactly what to use for income.

IRS Verification:  We will request from the IRS the last 2 years of the borrowers tax returns.  We use this to match up the borrowers tax returns that were given tot he tax returns that was submitted to the IRS.

Social Security Verification:  This verification is used to match up the borrowers social security number given to the social security number used by social security.

The 6th Step:  Underwriter Review

After we receive the appraisal & all verifications the file is ready to be submitted to underwriting.  At this time we have received all documents from the borrower and the processor has reviewed for accuracy.  Once submitted to the underwriter the underwriter reviews the file and looks for any errors or inconstancies with the file.

The 7th Step: Final Documents

After the underwriter has reviewed the file and signs off on all conditions. The final loan documents are now ready to be sent to the title company.  Once the documents are sent to title company the title officer prepares the final HUD document and the final loan documents.  The borrower then goes to the title company or to a mobile notary to sign their final loan papers.  Keep in mind that the Lender does not facilitate the loan signing.  The lender only prepares the loan documents and sends them to title.   The title company after receiving the loan documents will call the borrower to schedule the loan signing.

HUD Document:  This document shows all the fees & costs to the borrower.  Also the HUD will show exactly how much cash is needed to close from the borrower.

Loan Documents:  These are the documents that are signed by the borrower at the very end.  The documents include the Mortgage Note,  The Deed of Trust, Final Loan Application exc...

The 8th Step:  Loan Funding & Recording of the Documents

This is the final step before the borrower will receive their keys to their new home.  Megastar Financial is a table funder.   What this means is we can if the title company is ready send the wire for the loan at the same time the borrower signs their loan documents.  This is a great advantage when needing to close early.  After Megastar wires the money to the title company the title company is now ready to record the Deed of Trust.  Sometimes this might take a day or two.  If the title company is an out of town title company the deed will need to be overnighted to the exact county the document will be recorded in.

The 9th Step:  Receiving Keys & Final Walk Through

The same day the deed is recorded and escrow closes is when the borrower will meet with their real estate agent to pick up the keys and do a final walk through.  Most good agents will provide a final walk through through to make sure all the repairs (if any) were performed to the borrowers liking.

These are the 9 simple steps to home ownership. My team and I have perfected these steps in order to insure an on time closing and  a stress free escrow.  Megastar Financial Corp "Americas Most Trusted Mortgage Company".