Summary Of The Process:
1. Prequalification
2. Purchase a Home.
3. Apply For Your Loan
4. The Processing Of Your Loan Application
5. Appraising Your Home
6. Underwriting
7. Closing
1. Prequalification-
Prequalification is the term used to explain the short mathematical equation that determines how much of a loan you can afford. This may be performed by going to the Loan Advisor.
Prequalifying for a loan usually takes less than 5 minutes. This Costs you $0.00
2. Apply For Your Loan-
Applying for a home loan mortgage could not be easier. You may call to set up a convenient time to meet face-to-face with a lender or, if you prefer, have your loan application taken over the phone. Once your data has been collected, a credit report is pulled, & your loan status is determined. Once approved, we print an Approval Letter & fax it to you. (When you submit this letter with your offer, you have an advantage.) This process takes approximately 15 minutes.
[You may apply online by clicking onto the links to your right]
3. The Processing Of Your Loan Application-
Processing a loan may be better described as verifying information. One of our courteous Processors will contact you shortly to discuss the facts presented on your loan application. Typically, the Processor will ask for 3 items to verify these facts:
1. Your last 4 pay-check stubs (a year-to-date P & L if self employed)
2. Your last 2 W-2 forms (personal and/or corporate returns will only be requested if needed)
3. The last 2 statements you received in the mail from any institution with which you have money on deposit (checking, savings, investment, 401k, etc...)
So the appraisal can be ordered... You will need to:
Verify the information on your Mortgage Application, Applicable Disclosures, copy of your Credit Report
are correct. (Make sure your name, SSN#, address are all correct.) These documents require your signature.
4. Appraising Your Home-
The lender wil order the appraisal, if the home does not appraise to value
either the sales price is adjusted, or the loan is not funded, The buyer shoud receive their earnest money back.
The appraiser will contact you (your Real Estate Agent if you are purchasing a new home) to set a mutually agreed upon time to spend 45 minutes exploring the inside of the property being financed. Then the appraiser will spend hours researching "comparables", like-homes in size and lot that have sold as geographically close in proximity as possible, within the last 6 month period of time to the subject property. (This Costs You $300.00 Up-Front Then You Own The Appraisal)
5. Underwriting-
Simply put, an Underwriter is the brain thrust of a lender. They determine if a loan is approved or rejected and under what terms. If your loan is not approvable under the terms for which you have applied, then a counter offer is usually made if possible. For example, if you applied for a 15 year fixed rate mortgage, but the Underwriter felt the larger payment would be overly taxing based on your other debts and as a function of your income, then they may offer a 30 year fixed rate mortgage instead.
6. Closing-
The name speaks for itself. Usually your closing will take place at the title company of the seller's choice. Your Mortgage Closer will call you usually 24 hours prior to your closing to make sure everything has been properly coordinated between you, your Home Owners Insurance Agent, your Real Estate Agent and the title company.
The Funds required at closing from you must be in the form of a cashiers check, (never a personal check) Made payable to the Title Co. |
