Request A Free Consultation Today
Step 1: Pre-Qualification
Ability to repay the mortgage is verified by your current employment and total income. Generally speaking, mortgage companies prefer for you to have been employed at the same place for at least two years, or at least be in the same line of work for a few years.
The borrower’s willingness to repay is determined by examining how the property will be used. For instance, will you be living there or just renting it out? Willingness is also closely related to how you have fulfilled previous financial commitments, hence the emphasis on the Credit Report and/or your rental payment history.
It is important to remember that there are no rules carved in stone. Each applicant is handled on a case-by-case basis. So even if you come up a little short in one area, your stronger point could make up for the weak one. Mortgage companies couldn’t stay in business if they didn’t generate loan business, so it’s in everyone’s best interest to see that you qualify.Apply Now
Step 2: Mortgage Program & Rates
Shopping for a loan is very time consuming and frustrating. With so many programs to choose from, each with different rates, points and fees, an experienced mortgage professional can evaluate a borrower’s situation and recommend the most suitable Mortgage Program, thus allowing the borrower to make an informed decision.
Step 3: The Application
The various fees and closing cost estimates will have been discussed while examining the many mortgage programs and these costs will be verified by a Good Faith Estimate (GFE) and a Truth-In-Lending Statement (TIL) which the borrower will receive within three days of the submission of the application to the lender.
Step 4: Processing
Step 5: Required Documents
- Past two (2) years W-2 statements.
- Pay Stubs covering the last (30) thirty days.
- Most recent three months banks statements.
- Most recent transaction summary of 401K, IRA, or Mutual Fund Accounts.
- Photocopies of any stocks or certificates of deposits.
- Copy of the purchase and sale agreement.
- If you are currently renting: either 12 months canceled rent checks or the name and address of your current landlord.
- If divorced; a fully executed divorce decree.
- For a refinance; a copy of the deed, and most recent tax bill.
- A letter of explanation for any known credit problems.
- Two (2) years signed personal tax returns- including all schedules.
- If self-employed through a corporation, last two years corporate returns as well as a year-to-date profit and loss statement and balance sheet.
Step 6: Credit Reports
- Identifying Information
- Employment Information
- Credit Information
- Public Record Information
- Pay your bills on time.
- Keep balances low on credit cards.
- Check that your credit report information is accurate.
- Be conservative in applying for credit and make sure that your credit is only checked when necessary.
Step 7: Appraisal Basics
Step 8: Underwriting
Step 9: Closing
- Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally not accepted and if they are they will delay the closing until the check clears your bank.
- Review the final loan documents. Make sure that the interest rate and loan terms are what you agreed upon. Also, verify that the names and address on the loan documents are accurate.
- Sign the loan documents.
- Bring identification and proof of insurance.