Pre-Qualification: The mortgage process begins with Pre-Qualification. This can be done in person, phone, or via email. Your licensed loan officer will ask for some basic personal information- full legal name, home address, social security number and date of birth of all borrowers, in order to run a credit report; income information- where are you employed? How much do you earn? What other stable and documented income do you have? What funds do you have available for down payment and closing costs?
After analyzing the credit report, determining income and funds available to close, the licensed loan officer will work with you to make a determination as to which available loan programs may best suit your needs and the approximate loan amount for which you may qualify. At this point, the licensed loan officer may issue a Pre-Qualification letter to you. This letter will assist you and your REALTOR to ensure that the houses you are interested in are within your qualified range and meet minimum loan program guidelines.
After you and your REALTOR have negotiated the purchase agreement with the sellers and have approved the inspection on the house, we will complete a formal loan application.
In order to originate a formal loan application, the loan officer must collect all of the required documentation for each borrower, as applicable:
– 30 days of recent consecutive pay stubs
– 2 years W-2’s for all employers
– 2 years federal income tax return and all schedules (form 1040)
– Award letter or statement to document disability or social security income
– 60 days bank or credit union statements (checking, savings)
– Divorce Decree
– Child Support Order
– Bankruptcy Petition including all schedules and Discharge form
– VA DD214 or Certificate of Eligibility
– Copy of fully executed Sales Contract(Purchase Agreement), Lead Paint, and Sellers Disclosures
– Copy of deposit check given to REALTOR
– Additional documentation as needed
Your licensed loan officer will meet with you to gather all of the necessary documentation and review and sign all required loan application disclosures for your specific loan program, and review and sign all required loan application disclosures for your specific loan program, and review payment and closing cost details. The formal loan application process also includes ordering an appraisal on the home; requesting and receiving verifications of employment history, rental history, and funds to close; a review of the title insurance commitment to ensure clear chain of title. Additionally, you will be instructed to shop for a Home Owners Insurance Policy for the house with the agent of your choice. Your licensed loan officer will need to obtain a copy of the insurance quote or binder and an invoice for insurance.
When the processing staff has gathered all of the required documentation, the complete file is forwarded to an Underwriter to issue an official approval. The Underwriter may approve the file or request additional documentation in order to make a determination. When all of the underwriting conditions have been met, the loan is approved and cleared to schedule a closing. Your licensed loan officer will work with you, the seller, the REALTORs, and the title agency personnel to coordinate a closing day and time that suits everyone’s needs. A day or 2 before closing, your licensed loan officer will contact you to let you know the exact amount of funds required for closing and to whom the cashier’s check/money order should be made payable. Your licensed loan officer will provide you with copies of all documentation and keep you informed of status throughout the transaction. Generally the mortgage process takes 3-4 weeks to complete; however it can move more quickly or take longer depending on the specifics of the transaction. Your licensed loan officer will provide you with copies of all documentation and keep you informed of status throughout the process.
Contact us today to get the loan process started to secure your home.