Interest rates can be very volatile and may change at any time. At PacWest, we offer you the opportunity to lock-in the interest rate during the processing period.  Loans may be locked-in for 30 days and sometimes longer if necessary. 

At PacWest, we recommend that you lock-in your interest rate because this guarantees you the lower rate in the event rates should increase before the loan closes. 

PacWest has extended lock-in periods should the circumstances warrant it.

ARM loans offer many flexible benefits to borrowers seeking a lower interest rate than the prevailing market interest rate, generally for the first year of their loan or until the first adjustment occurs (referred to as a "start rate"). ARM loans differ from fixed rate loans in that the interest rate may change during the life of the loan according to different market fluctuations. The changes in the interest rates are based upon an "index" which in most cases is tied to weekly average yield on the US Treasury Securities Index. The index is published regularly in many newspapers such as the Wall Street Journal. Many factors such as the "margin" and "caps" should be evaluated carefully to see if you are a good candidate for an ARM loan. PacWest provides an ARM loan disclosure explaining all of the details associated with these types of loans.

We know that purchasing your first home can be a very exciting yet stressful time. At PacWest, we have helped thousands of first time home-buyers get pre-qualified with our on-line application. With our $750 buy, finance & close program, we can walk you through the entire process of home-ownership from start to finish. To get you started in your home search process, ask for a free list of homes for sale, a free credit report, and a free pre-approval certificate.

For most people, one of the biggest hurdles associated with purchasing a home is the down payment requirement. Depending on which loan program you select, the down payment requirements vary. FHA programs provide for as little as 3% down, Conventional programs require 3%-20% down, and VA programs do not require any down payment. What if you don’t have the necessary down payment? Consider a gift or loan from a close relative, a loan from a 401(k) or retirement plan, a loan against an auto or the sale of an asset. There are also down payment assistance plans available to certain individuals and properties.

Some loans involve charges or costs associated with the transaction. On a purchase, in addition to any down-payment requirement, you may have to pay for closing costs. These may include title insurance, appraisal and credit report fees, loan origination fees, recording fees, and escrow fees. In many cases, your purchase and sale agreement may include a provision that the seller pays these fees on your behalf. Certain other costs technically referred to, as "prepaid items" must also be paid. Among such costs are the buyer’s share of the current year’s real estate taxes, the first year homeowners insurance premium and the cost of establishing an account to pay future taxes and insurance. The seller may also pay for prepaid items. Refinance transactions may also be subject to closing costs and prepaid items unless you have chosen a "no cost" loan program.

PacWest recommends a home inspection on all purchase transactions. A home inspection gives the buyer more detailed information than an appraisal—information you need to make a wise decision. In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to: evaluate the physical condition: structure, construction, and mechanical systems, identify items that need to be repaired or replaced, estimate the remaining useful life of the major systems, equipment, and structure.

A home inspection gives the buyer an impartial, physical evaluation of the overall condition of the home and items that need to be repaired or replaced. The inspection gives a detailed report on the condition of the structural components, exterior, roofing, plumbing, electrical, heating, insulation and ventilation, air conditioning, and interiors. It is your responsibility to be an informed buyer. Be sure that what you buy is satisfactory in every respect. You have the right to carefully examine your potential new home with a qualified home inspector. You should arrange to have a home inspection before you purchase your home. Make sure your contract states that the sale of the home depends on the inspection.

Credit scoring, which for years has been used by credit card, car loan and finance companies, has moved into the home loan area. Your "credit score" which combines a credit score with other variables, identifies whether you’re a good credit risk. And that helps many lenders decide whether to approve your mortgage application. Credit scoring, which relies on computer capabilities, is growing in use as lenders attempt to remain competitive by cutting costs and increasing productivity. By accurately predicting good credit risks, lenders can reduce loan foreclosures. Moreover, because the underwriting criteria are applied uniformly, credit scoring eliminates subjectivity. While credit scoring has made it easier to some borrowers to get a loan, consumerists are concerned credit scoring may make borrowing more difficult for some mortgage seekers.

You may be wondering what documentation that you will be asked for at the time you make your application. Here is a checklist of items that you may be asked for at the initial interview:

• Name & address of current & previous employers for the last 2 years
• Name & address of current & previous landlord or lender last 2 years
• List of all monthly recurring liabilities or debts
• Most recent pay-stub
• W-2 forms covering the last two years
• (self employed individuals: Last 2 years of tax returns + recent P&L statement) Recent bank statements for each open account
• Recent statements for all asset accounts, including 401-K and IRA accounts
• Rental or lease agreements
• Purchase & Sale Agreement copy, if applicable
• Picture Identity & Social Security Number verification
• Divorce Papers
• DD214 (VA loans only)
• Mortgage statement or year-end statement (refinance only)
• Homeowners Ins. Policy (refinance only)
• Copy of existing Note & Settlement statement (refinance only)