At the ___________, we always strive to make the process easier for our clients. We feel that purchasing a home is the most important financial investment you will make in a lifetime. Achieving the American Dream of Homeownership should be one in which we carefully guide you through the process so that it is a positive experience that you will remember. Here are a few questions that first-time buyers typically have…

1. How long will it take for our loan to be approved?  After you have submitted your application, loan approval typically takes just a few days if the documentation we ask to be provided (see form attached) is complete. The more complete the information, the more quickly we can act.

2. What is the process after the loan is approved? Assuming you have a sales contract signed for a new home, the next step is to make sure all conditions are clear. Many of these conditions are standard and are provided by third parties, such as obtaining an appraisal and clear title. The quicker these conditions are received, the smoother the settlement process.

3. What is the difference between a pre-approval and pre-qualification?  A pre-qualification is an opinion on whether you are qualified for the mortgage and does not mean that the information provided has been verified or the file has been underwritten. A pre-approval means that the relevant information has been verified and the file has been underwritten and approved. The file typically would be approved subject to writing and submitting a sales contract, satisfactory appraisal on the property selected and locking in a rate and loan program.

4. When can I lock in a rate on the loan? Typically you can lock in the rate after the application is complete and after a sales contract is ratified. Rates change daily and sometimes more than one time per day and we can keep you informed as to how the markets are changing.

5. How much money will I need at closing? You will need money to cover the down payment and closing costs and escrows.  The closing costs are itemized on the Good Faith Estimate of Closing Costs, a government required form we will provide. From this number, you can subtract your deposit that is being held by the Realtors and any closing cost credit paid for by the seller.

6. Can I borrow the money I need for closing, for example, place a charge on my credit card? Each program is different with regard to how you can procure the funds necessary as well as the cash reserves needed after closing. We advise you not to borrow any money until you close on your home, at least not without talking to us first.  A car or furniture purchase could change your qualification status. 

7. What is included in my mortgage payment? We refer to the payment as the “PITI.” This stands for Principal, Interest, Taxes and Insurance.  Principal and interest refers to the payment on the loan and taxes and insurance is payment for bills that will be due each year. We refer to these as escrows, or money you put aside (or escrow) for bills to pay due. Insurance is typically for a “homeowner’s policy” to protect your house but there may also be monthly mortgage insurance charged by FHA or conventional lenders.Also many homes have homeowner association fees which cover charges for common areas such as pools and tennis courts. If you purchase a condominium, the PITI may include no or reduced insurance costs because your condo fee will include insurance for the building. These fees are in addition to the PITI and paid directly to the association. 

8. Will I get a copy of the appraisal of the property? Yes, you will be provided with a copy. If there is a “problem” with the appraisal, for example, if the value is less than the sales prices, you will be notified promptly.

9. Will I get a copy of my credit report?  Yes, we will be able to provide you with a copy of your credit report. The Fair Credit Reporting Act requires that this information cannot be shared with other parties to the transaction and therefore it must be provided to you directly.

10. If I have a question, how do I contact you?  Since I am often in appointments, the best way to reach us for response would be by email at _____________________.  It is important that you get all your questions answered, so please to do not hesitate to ask.  If it is an emergency and you need immediate response, you can call ___________________.

Our mission is your satisfaction!

Mortgage Application Documentation For Home Purchase

Our goal is to facilitate a smooth transaction for each and every one of our customers. Having correct and complete information upfront is a key to a hassle-free home finance experience. 

This checklist will help you prepare so that we can serve you more efficiently.

Present Property (For current homeowners only)

•Copy of ratified contract and all addenda for present home if you are selling.
•Copy of lease for present home if you are going to rent out your property.
•Copy of listing if home is not sold yet.

Employment & Income
•Address for present and past employers going back two complete years.
•W-2s for the past two years.
•Most recent pay stub.
•If self-employed—two years tax returns (corporate & individual) and year-to-date profit and loss statement if there is a “gap” of more than three months not covered by the tax returns.
•Diploma or transcript if full-time student during past two years.
•Leases for current rental properties.
•Divorce decree and evidence of 12 months payment for child support/alimony (if using this income to qualify).

Assets & Liabilities

•Statements covering transactions for the past two months for all bank/stock accounts (one quarterly statement if the statement is issued quarterly)
•Name and address of landlord if renting present home.
•Name and address for any private mortgages or loans outstanding or copy of most recent statement(s)
•Account information (balances/monthly payments) for all credit cards, auto loans, mortgages and other loans.
•Copy of ratified divorce decree or separation statement for alimony or child support obligation.

Home You Are Purchasing

•Ratified contract and all addenda
•Copy of listing
•Front & back of cleared check used for deposit on home you are purchasing.