Your maximum loan amount depends on many factors, including:

• How much you can afford for monthly payments.
• The appraised value of the property.
• The amount of equity in your home, if you're refinancing.
• How much money you have available for closing costs and a down payment (if you're purchasing).
• Your credit history.

After we receive your application, we will:
Review your application to make sure the information is complete and consistent. A Loan Officer or a Processor may contact you for additional information or clarification. Verify the information you provided and confirm that all necessary documents are included.

Evaluate your loan information in a process known as underwriting. Underwriting is a major step in the approval process because it evaluates your ability to comfortably make your loan payments.

Order and review an appraisal of the home you are buying or refinancing. The appraisal confirms whether the property's value is in line with the purchase price and loan amount.

Your Loan officer will work with you to make sure you obtain homeowners insurance for the property and to set up an escrow account to collect funds for expenses such as your homeowners insurance premium and property taxes. Throughout loan processing, Panamerican Mortgage staff will provide you with important information about your loan and purchase transaction.

No matter how you apply, one key to getting your loan quickly is filling in the application completely and accurately. It's also very important to attach all the supporting paperwork required. Use our Application Checklist to help.

The actual closing process varies from place to place, but usually includes the following steps:

1. A Notary reviews the settlement sheet with you. This document includes all the final costs for the purchase transaction or refinance loan.
2. You sign loan documents such as the mortgage or deed of trust, note and Truth-in-Lending statement.
3. For a purchase loan, you provide a certified check or cashier's check to the closing agent to cover the down payment and closing costs. If you're refinancing, your closing costs may be paid from cash out of your new loan.
4. For a purchase loan, the Escrow gives a check for the home loan amount to the closing agent (usually Title Company). For a refinance loan, the closing agent (usually title company) receives a check for the balance of your old loan. The "cash out" from a refinance may be paid directly to creditors by Escrow, if you wish, or you can choose to receive a check for this money.
5. The monthly payments will include amounts paid toward the payment of property taxes and insurance, the escrow account is set up.
6. You receive the keys to your new home, along with copies of all the closing documents.

Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.

With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an Adjustable Rate Mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an Adjustable Rate (ARM) loan will likely change. There are advantages and disadvantages to each type of loan, and the best way to select a loan product is by talking to us.

An index is an economic indicator that lenders use to set the interest rate for an Adjustable Rate Mortgage (ARM). Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Panamerican Mortgage can help you evaluate your choices and help you make the most appropriate decision.