Our Process

At Severn Savings Bank, as your premier Anne Arundel County-based lending institution we want to make your lending experience as easy as possible. Follow our hassle-free process and the funds you want will be in your hands as quickly as possible.

Compile Important Documents

Buying or refinancing a home

• Two years W-2 and one month of pay stubs, or if you are self-employed, two years tax returns and a YTD P&L
• All pages of your most recent statement for each of your bank, stock and mutual fund accounts
• All pages of any stock brokerage, mutual funds or IRA/401K accounts
• All pages of any rental agreements and two years tax returns for any rental property you own
• If you are interested in a purchase, include all pages of the fully ratified contract of sale
• If you are interested in a cash-out refinance, provide a letter explaining what you plan to do with the proceeds and a copy of the current note and deed
• A copy of your separation agreement and divorce decree, if applicable
• A copy of your green card or H-1 or L-1 visa, if applicable

Applying for a home equity loan

• Two years W-2 and one month of pay stubs, or if you are self-employed, two years tax returns and a YTD P&L
• A copy of the note on your first mortgage
• All pages of any rental agreements and two years tax returns for any rental property you own
• A signed letter explaining what you plan to do with the proceeds
• Provide a copy of your separation agreement and divorce decree, if applicable
• A copy of your green card or H-1 or L-1 visa, if applicable

Get Qualified

When buying a house, you may get pre-qualified.

You can typically get pre-qualified over the phone in a few minutes. A pre-qualification helps you understand how much money you can borrow.

Pre-qualification Form (pdf format)

Shop for Loan Programs and Rates

With so many lenders, programs, rates, points and fees, shopping for a loan can be confusing and difficult. Be sure to compare different programs and consult an experienced loan officer to help you figure out which loan program is best for you.

Be sure you understand the relationship between loan rates and points. Points are considered to be prepaid interest and may be tax deductible. Be sure to consult a tax advisor for details on points and their tax implications. Each point is equal to one percent of the loan. So for example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower your rate will be.

Get Approved

Once Severn receives your loan application, we start the approval process immediately. Here's what we do:

• Verify your credit history and employment history
• Confirm your assets, your bank accounts, stocks, mutual fund and retirement accounts
• Determine the value of the property you intend to purchase

To improve your chances of getting approved, be sure to:

• Complete the entire loan application, no white outs
• Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date
• Do not make any major purchases - anything that causes your debts to increase might have an adverse affect on your current application
• Do not move money into your bank accounts unless it can be traced. Please contact us if you are receiving money from friends, family or other relatives

Close the Loan

Once your loan is approved you are ready to sign the loan documents. Before signing, review the final loan documents to make sure that the interest rate and loan terms are correct and verify that the name and address on the loan documents are accurate.

You will need a cashier's check for your down payment and closing costs.

Your loan disbursement will normally occur shortly after you have signed the loan documents. On refinance and home equity loan transactions federal law requires that you have three days to review the documents before your loan transaction can be completed.