One very important element of purchasing your new home is obtaining the funds for payment. Very few homes are purchased with cash, and it is likely that you will be obtaining a home mortgage loan to finance your home. You will be dealing with professionals at an independent Mortgage Company; a company whose sole purpose is to secure home loans for buyers. Depending on the type of financing you choose, your Mortgage Company will be working within guidelines that are set by various government agencies and private entities. Please understand that the size and nature of this transaction requires a great deal of detailed information, some which may seem very personal. Most of this information you will have available, but it may be a time-consuming endeavor to assemble all the required documentation.

So you will have a better understanding of this somewhat complex process, we have outlined the steps you will normally take in securing financing for your new home.

Your first meeting with your Loan Officer will be to review your application and to discuss your preferred financing option(s). You can expedite this meeting by completing as much of the application form as possible in advance.

Once you have given your complete information to your Loan Officer, it will be given to a Processor for verification; a required step in the process. You will sign forms during the loan application meeting to allow various sources to provide otherwise unobtainable information in writing (such as income, job history, source of down payment, credit history, etc.) Lenders require written substantiation of this information before they will consider approving your loan. At this time, you may be granted Preliminary Loan Approval by the Mortgage company, based on its initial review of your information. Preliminary Loan Approval means your Mortgage Company Loan Officer believes an Underwriter will accept your loan, providing that your preliminary information is substantiated without variance and with no new debt.

Once your information verifications have been received by the processor, your loan will be submitted to an underwriter. An underwriter is a person with authority to determine if all the lender’s requirements for your loan have been met. At this point, you may be asked to clarify or provide additional information. The information involved is usually very personal, but crucial to the approval of your loan. Of course your Loan Officer and your Community Sales Manager will assist you with discretion and confidentiality. Just remember, this a a very routine part of the process for any loan applicant. Also, remember that because of the size of this transaction, the process is scrutinized very closely. Requests for clarification or additional information are a normal part of the process.

Thirty to 45 days before your closing, your loan application "file" will be delivered by the Underwriter for Final Loan Approval. All the information in your file will be current at this time. If you have experienced any changes since your initial loan application, contact your Loan Officer. Changes to your employment status, finances, debt amounts, etc. could cause a delay in your closing, so it is important to keep your Mortgage Company informed. Once the Underwriter accepts your loan, your Mortgage Company will notify you of final approval!

You can facilitate the mortgage application process by collecting as much of this needed information as possible before your appointment:

Bring your copy of your Purchase Agreement for your new home, as it will include the legal description of the property and the price.

• Social security numbers for all borrowers Home address(es) for the last two years
• Divorce decree and/or separation agreement, if applicable
• VA Certificate of Eligibility, DD214 Discharge papers or statement of service, if applicable
• Names in which property title will be held and type of title

• Borrowers/co-borrower’s income
• Most recent pay stub(s) for the last two pay periods
• Documentation on any supplemental income: bonuses, commissions, etc.
• Names, addresses and phone numbers of all employers for the last two years
• Tax returns and W2’s for last two years

• Most recent two years complete, signed and dated income tax returns, (include all schedules and K-1s)
• Current Year-to-Date Profit & Loss statement (with signatures), balance sheet, and Schedule C
• Corporate tax returns, if you own 25% or more of the corporation, (include year-to-date profit and loss with signatures).

• Complete Address
• Names, addresses, phone numbers and account numbers of all mortgage lenders
• Copies of all leases for any rental property taxes, hazard insurance amounts
• Market value estimate

• Source of down payment and closing costs
• Complete names, addresses, phone numbers and account numbers for all bank accounts, credit union accounts and/or investment companies
• Copies of most recent earning statement for investment companies
• Copies of any notes receivable
• Other assets (boat, motorcycle, major works of art, etc.) and approximate value
• Cash value of life insurance policies
• Vested interest in retirement funds, IRA’s, etc.

• Name and account number for all revolving charge cards, balance and current monthly payment amount
• Name, address, phone numbers and account numbers for all installment debt, approximately balance and monthly payment. If auto loan, the make, year and approximate value of auto
• Alimony or child support payments
• Any other debt
• Name, addresses, phone numbers and account numbers of accounts recently paid off, if to be used to establish credit
• You will be asked to pay for a credit report and an appraisal upon signing the application.