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Prequalification
This is an optional preliminary step before looking for a home. We
help establish the maximum home you can afford and find the type of
loan that would best suit you. We estimate your down payment and closing
costs and determine what your monthly mortgage payments would be.
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Answer all questions honestly – it is the only
way we can give you accurate information. |
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Be as prepared as possible – we will need to discuss
your gross monthly income, savings, monthly debts and credit
history. Information you disclose will be kept confidential. |
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If you have had a bankruptcy, or other credit
problems, (i.e. collection accounts, judgements, liens, etc.),
please let us know; we may be able to work with these problems. |
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Be aware that a prequalification is not a loan
commitment. |
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Prequalification
This is an optional preliminary step before looking for a home. We
help establish the maximum home you can afford and find the type of
loan that would best suit you. We estimate your down payment and closing
costs and determine what your monthly mortgage payments would be.
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Applying for Your Loan
Once your offer has been accepted, we will make an appointment to
complete your loan application. You may arrange for your sales agent
to attend. All buyers should be present.
Information You'll Need
It may be helpful for you to have the following information and documentation
handy when filling out your application:
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Two Years Residence History:
Landlord’s name and address or 12 months cancelled rent checks
(front and back). |
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Checking and Savings Accounts:
Name:
Address:
Account Number:
Current Balance:
Monthly Payment: |
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Current Mortgage Loan:
Previous information, plus; Past 12 months cancelled checks
(if this is a VA loan, you will need your Certificate of Eligibility
and DD214’s). |
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Other Real Estate:
Address and Loan information. |
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Employment Information:
Employer's name and address.
Previous employers' (if less than two years) name and address. |
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If you are salaried:
Your pay stubs for the most recent 30-day period.
Last two years' W-2 forms. |
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If you are self-employed:
Copies of your last two years’ Federal tax returns, signed and
dated.
Most recent year-to-date Profit & Loss Statement, and Balance
Sheet, prepared and signed by your accountant.
Copies of your last two years’ Federal corporate/partnership
tax returns, signed and dated. IRS Form 4506. |
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If you intend to rely on other income to qualify
for a loan:
Rental agreements and signed, dated copies of your last two
years’ Federal tax returns.
Social Security award letter and/or copies of your Social Security
income checks.
Retirement award letter and/or copies of the checks.
Divorce decree and 6 months of cancelled checks for spouse or
child support. |
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If you are applying for a loan to purchase property:
Please include a copy of your escrow instructions or sales contract.
We’ll also need evidence of the source of your down payment
– for example, copies of savings account statements, stock certificates,
broker’s statements or gift letter with a copy of the donor’s
bank statement. |
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If you are selling property to obtain the down
payment:
We’ll need a copy of the escrow instructions or sales contract,
and an estimated HUD closing statement prepared by the settlement
agent.
In some cases, we may need other information. Your Loan Officer
will notify you from time to time during the processing of your
loan if anything further is necessary. |
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Good Faith Estimate
Shortly after you submit your loan application, we will send you a
Good Faith Estimate of Settlement Costs and Itemization of Amount
Financed. In this document, we will estimate your settlement (or "closing")
costs for the transaction, to the best of our knowledge. Federal law
requires that we estimate all the costs for your transaction – even
services we do not perform ourselves such as settlement and title
costs. Since we only estimate costs for these other parties, we suggest
you contact them directly for precise charges. We do not place any
restrictions on your selection, or recommend a provider of any services
in connection with the closing of your loan.
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Processing your Loan
During this time period, we will collect documentation to verify
your employment, income, savings, assets and liabilities. The appraisal,
title and credit report will be ordered. After all required documentation
is received, your loan package will be submitted to our Underwriting
Department for a loan decision based on credit history, income stability,
assets and property value.
During this time:
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You may be required to supply additional documentation. |
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You should not purchase any items that must be
paid for on time payments or would substantially reduce your
savings or bank account balances. |
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If any credit problems are discovered, we may
request a letter explaining the circumstances, or that a debt
be paid off. |
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If you are going out of town during the work week,
please let us know. |
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You will want to shop for your homeowner's insurance.
You must obtain hazard insurance for at least the replacement
value. Payment for your first year’s policy, plus two months,
will be part of your final closing costs. |
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Submission of your Loan Approval
Your sales agent will be notified when your package is being submitted
for approval. If your loan is approved, we will contact you with
the terms of your approval.
When you receive approval:
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Make arrangements with your sales agent for your
walk-through. |
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Arrange for the utilities to be changed to your
name. Arrange for moving your household. |
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Be sure you have applied for your homeowner’s
insurance and that escrow has the necessary documents and payments. |
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Loan Closing
Approximately 48 hours are required to prepare your loan documents
which detail the terms of the loan to which we have agreed. When you
are ready to close, loan documents will be drawn and sent to your
escrow agent for your signature.
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Make an appointment with your escrow agent as
soon as you are notified. These documents are dated and costly.
You must pay to have them redrawn if they are not signed before
their expiration date. |
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Read them carefully and be sure you understand
all of the terms. |
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Your escrow agent will give you the final dollar
amount needed to close escrow. You must pay for these costs
with a cashier’s check. |
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Loan Funding
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Funds for your new loan are sent to your escrow
agent. |
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We will supply escrow with a check for your loan
amount. |
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You will be informed of the expected closing date
a few days in advance, but you need not be present. |
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You will receive a call from your escrow company
or sales agent telling you that the home is now in your name. |
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