The Loan Process

Once you select to obtain your home loan, you'll be amazed at how quickly and simply the loan process moves. Before you know it, you'll have a mortgage that suits your lifestyle and saves you money.

Throughout the loan-application process, we provide you with regular updates. You can also e-mail us with questions or new information. And if you want assistance, a mortgage expert who can answer questions is just a phone call away.

 STEP ONE -- Apply Now! Getting started is easy. 

When you've selected a property and have a contract with the Seller, the next step is to complete your loan application, which can be done easily through our website. Click on "Click Here to Apply Online!" to start your application.

At the appropriate time we'll order a property appraisal for you.

STEP TWO -- Your Loan is Approved and Funded

Your Real Estate Agent or the Seller will designate an Escrow/Title Company to handle the funding of your loan, along with many other factors which make your purchase go smoothly.

We will coordinate with the escrow team and you'll sign the final papers at their office.

Simple, Straightforward, Cost Effective, and FAST!

Click here to start your application process!

• W-2 forms for previous 2 years
• All paystubs for the last 30 days
• Tax Returns for previous 2 years if you are self-employed or receive commissions
• Divorce Decree if you have ever been divorced
• Current statements covering most recent three months on all your bank, brokerage, 401K, and retirement accounts
• Check to cover your credit report and appraisal
• Copy of your sales contract
• List of your landlords and/or mortgage companies for the last 2 years

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.

An index is an economic indicator that lenders use to set the interest rate for an 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. Capital City Mortgage Corporation can help you evaluate your choices and help you make the most appropriate decision. 

For most homeowners, the monthly mortgage payments include three separate parts:

· Principal: Repayment on the amount borrowed

· Interest: Payment to the lender for the amount borrowed

· Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company. 

The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:

· Earnest Money: The deposit that is supplied when you make an offer on the house

· Down Payment: A percentage of the cost of the home that is due at settlement

· Closing Costs: Costs associated with processing paperwork to purchase or refinance a house 

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 ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us. 

Capital City specializes in the purchase-money transaction.

At Capital City Mortgage, we specialize in investor home mortgages. We offer up to 100% financing on the purchase of investment property.  

One of the first steps most people take when considering buying investment property is for them to allow us to assist them by obtaining a home equity line of credit. This gives the would-be investor some additional “working capital” with which to work. They can then use this “borrowed” money as their down payment on future purchases.  

Take comfort in knowing that most of the associates at Capital City own investment property. In fact, one associate owns 20 properties. That personal investment property experience translates into better advice and counsel. We are even willing and able to assist you by giving you names of sub-contractors from every trade you can imagine.  

If you are undecided about buying investment property, we would like to recommend the book, Rich Dad Poor Dad. The author, Robert Kiyosaki, has a way of inspiring you to buy that first home, on your way to creating what can become a real estate empire.