Mortgage Process
Financial Help For Your Dream Home
Your Initial Meeting With a Mortgage Professional
The loan approval process
typically begins with an initial interview with a mortgage
professional and the prospective home buyer to discuss the
potential loan. You will need to bring information to this
meeting to verify your income and long-term debts.
Often people prefer to meet with the
mortgage company before house hunting to determine in advance
what price range they can realistically afford and the
mortgage amount they can qualify for. In this step called
pre-qualification, you will save much time and trouble by
determining the correct price range.
For your first meeting with the mortgage
company, you should bring:
-
A purchase contract for the house (if
you have one)
-
Your bank account numbers and address
of your bank branch, along with checking and savings account
statements for the previous 2-3 months.
-
Divorce settlement papers, if
applicable
-
Credit card bills for the past few
billing periods, or cancelled checks for rent or utility
bill payments, to show payment history and amount of
revolving debt.
-
Information on other consumer debt such
as car loans, furniture loans, student loans and retail
credit cards
-
Balance sheets and tax returns if you
are self-employed
-
Any Gift letters, if you are using a
gift from a parent or relative or other organization to help
pay down payment and/or closing costs. This letter
simply states that money is in act a gift and will not have
to be repaid.
Having these items on hand when you
visit the mortgage company will help speed up the application
process. Usually the application fee and the appraisal fee
will have to be paid when you submit the mortgage
application. This is only done after you have successfully
negotiated on a home and have had your offer accepted by the
seller. Generally there is no fee for prequalification.
After the initial meeting with the
mortgage company, you should have a general idea if you
qualify for the size and type of loan you want. The mortgage
company should let you know if you qualify for the loan within
days. If you are denied a home loan the mortgage company must
supply you with an explanation.
Speed Up the Mortgage Process
Be sure to respond promptly to requests
for information while processing is taking place. Be prepared
to provide the following typical items:
- The final purchase contract for the
house (if applicable).
- Pay stubs for each applicant, showing
earnings for the last 30 days and year-to-date earnings.
(These must be computer-generated or typed originals that
identify the employer and the employee’s name).
- Last year’s W2 and 1099 for each
applicant. If you’re self-employed, the mortgage company
may require your personal and business tax returns for the
previous two years and your company’s year-to-date Profit
and Loss statement.
- Account numbers for all bank accounts,
along with account statements for the past two months.
- Information about debts, including
loan and credit card account numbers and the names of your
creditors.
- Evidence of your mortgage or rental
payments, such as canceled checks.
- An irrevocable gift letter if you are
receiving a monetary gift from a relative.
After the Mortgage Application
Your mortgage company will begin the work
of verifying all the information you’ve provided. This
process can take from one to six weeks, depending on the type
of mortgage you choose.
Within three business days after your
application, the mortgage company must give you an estimate of
your closing costs. (The closing is the actual settlement of
your loan.) You will also get a statement that shows your
estimated monthly payment, the cost of your finance charges,
and other facts about your mortgage.
Stay in touch with your mortgage company
during the waiting period and be prepared to answer any
questions that might come up. Remember, mortgage companies
are in the business of making loans, not denying them.
Some home buyers approach the closing
process with much apprehension as it is so unfamiliar to
them. Check with your mortgage company on what to expect at
your closing.
Click Below for our online Mortgage Application:
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