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Our Simple Loan Process.
From application to closing, we keep things simple and transparent. Follow this guide to understand what to expect.
ONE simple process that puts you in control.
Take the stress out of buying, with ONE AMERICAN BANK. Our simple seven step process makes it easy to achieve your homebuying goals.
A loan pre-qualification helps set you up for a smooth home buying experience. This is a review of your income, assets, and credit to determine how much of a home loan you may qualify for.
Once you go under contract, we will prepare a packet of loan disclosures (including your Loan Estimate) for you to e-sign. It is extremely important to review these documents closely. If you have any questions or see any discrepancies on the loan documents, please reach out to your ONE AMERICAN BANK Loan Officer. Revisions to your loan later in the process may cause delays in your closing. It is extremely important to sign and return all disclosures within 24 hours. Your appraisal will not be ordered until you sign your loan disclosures. The appraisal fee will be collected once all disclosures have been signed and we have ordered your appraisal.
Processing reviews the file to ensure all supporting documentation is included in the loan file for underwriting to review. You may be contacted by a ONE AMERICAN BANK processor to provide any additional or outstanding documentation. Once all supporting documentation has been gathered, your loan will be submitted to our underwriting department.
A ONE AMERICAN BANK underwriter will review your loan file and make a decision on the loan approval. The speed of underwriting is based on all the supporting documentation provided upfront. Once the file has been reviewed, the underwriter will issue a conditional approval. These conditions are what we need to issue a Clear to Close. You will be contacted by your Loan Processor if there are any outstanding documents that you may need to provide for the underwriter to issue a Clear to Close.
5.Your Initial Closing Disclosure
The initial Closing Disclosure is one of the most important documents throughout the mortgage process. The initial Closing Disclosure must be signed a minimum of 3 business days before your closing. This document gives you an initial estimate on what your final mortgage payment will be and an estimate on what your cash to close will be to close on the loan. ONE AMERICAN BANK makes every effort to give you an accurate estimate on what you will see on the day of closing. It is imperative that you sign the initial Closing Disclosure as soon as you receive it to ensure an on-time closing.
6.Clear to Close
Once the underwriter has reviewed all outstanding conditions and supporting documentation, then they will issue a Clear to Close.
The final step is going to the attorney’s office or title company where the closing takes place to sign all of the final mortgage documents. It may take an hour or so due to the number of documents to be reviewed and signed. Each borrower will need to bring a valid photo identification. If money is owed at closing, your loan officer will notify you ahead of time about how much, how, and where to send the money. It’s always good to bring a checkbook in case of any incidentals. Once all documents are signed, the loan is considered closed.
ONE AMERICAN BANK Mortgage FAQs
Get your questions answered quickly with our FAQs.
Q: What documents are needed for my loan application?
A: Application Check List (please note other items may be requested based on your specific loan type):
Copy of driver’s license
If not a US citizen, provide copy of green card/valid work visa.
Most recent 30-day paystubs
Most recent year’s W-2
Most recent statement (all pages) from your asset accounts (checking, savings, stock, retirement, mutual funds, etc.)
Most recent 2 years tax returns (if self-employed)
Most recent K1 (if applicable)
Current signed rental agreement if you own rental property
Mortgage statement on all real estate owned
Copy of property tax bill and homeowner’s insurance declarations page on any other real estate owned if not escrowed.
Copy of most recent homeowner’s association (HOA) bill or coupon on all real estate owned (if applicable). If you do not have HOA dues on real estate owned, then provide letter stating that there are no HOA dues on the property you own (be specific in letter with property address and make sure you sign and date)
Contact name and number for homeowner’s insurance agent/company on subject property
Q: What should I do or not do during the loan process?
A: 10 Dos and Don’ts while we’re processing your mortgage loan:
- Do not fail to disclose debts you owe (payments to the IRS, child support, alimony). If anything new shows up during the processing of your loan, it could change the circumstances of your loan.
- Do not apply for new credit (i.e., don’t let anyone run a credit check on you).
- Do not make major purchases, (e.g., furnish your home) before closing.
- Do not co-sign a loan for anyone.
- Do not close any existing credit or bank accounts.
- Do not stop paying your bills or get behind on your bills – even your mortgage, if refinancing.
- Avoid changing jobs.
- Save your money until after closing, as you will need to have enough money for down payment, closing costs, and possibly reserves.
- Do not borrow money or make bank deposits larger than your usual paycheck. If you must do so, make sure you keep a paper trail to document this.
- Do not deposit cash into your bank accounts.
Not sure? Ask! Any major changes in personal income, assets or debt can alter the terms of your mortgage offer or lead to loan denial. If you’re not sure how an action might affect your application, ask your ONE AMERICAN Team for advice.
Q: Why must I sign the Closing Disclosure statement in advance?
A: By law, lenders are required to provide the information on this statement to you in a timely manner. Your signature merely indicates that you have received this information, but it does not obligate either you or the lender in any way. Final Closing Disclosures will be signed at the time of closing.
Q: What is the Annual Percentage Rate and why is it different than the interest rate?
A: The interest rate is used when calculating the interest portion of your loan payment, so it determines your monthly payment amount. The Annual Percentage Rate, or A.P.R., is the cost of borrowing the money and includes not only the interest expense on the loan but also some fees you may be paying for the loan, such as points and other closing costs. The A.P.R. expresses the annual cost of your loan as a percentage and is more effective way to compare price of loans that you may be considering.
Q: What are points?
A: Points, also called discount points, are fees paid directly to the lender in exchange for a reduced interest rate. You can do this to “buy down” your rate, which could save you money in interest over the life of the loan. One point equals one percent of the loan amount.
Q: What is PMI or MI?
A: If you do not have 20% equity in your home or a 20% down payment on the purchase price of a home, mortgage insurance (also known as private mortgage insurance or PMI) is generally required. PMI protects the lender if you default on your primary mortgage. The mortgage insurance premium is included in your total mortgage payment. You may be able to avoid PMI by piggybacking a smaller second mortgage to cover the down payment. Some programs allow the PMI to be cancelled when your loan-to-value (LTV) reaches 80%.
You’re ONE of a kind. We believe your mortgage experience should be too.
Start your application today to see what possibilities await you.