Mortgage Process in Layman’s Terms
After you submit your Application in, we will make an initial determination as to how much borrower can pay for a house. Borrower’s Credit Score, Debt-to Income Ratio, down payment/ or Loan to Value ratio, are one of the things that are factored in the process
Note: Loan Application is not considered complete until we have all of six Information per TILA-RESPA Integrated Disclosures Guideline (TRID)
- Borrower’s Name; 2) Borrower’s Income; 3) Borrower’s Social Security Number (And Authorization to check credit); 4) Address of the Property you want to Purchase/Refinance; 5) Estimate of Home Value; 6) Loan Amount you want to Borrow
Loan Estimate is issued after you have been pre-qualified. All Lenders are required to honor the terms of the Loan Estimate (LE) for 10 business days from issuance. If you decide to move forward more than 10 business days after you have received a LE, please realize that market conditions may change and the terms and conditions may be adjusted. When you decide to move forward, you must tell us in writing that you want to move forward with the application.
Once Application has been submitted, Processing of Mortgage begins. Our Processor orders all required documents for application, such as but not limited to: Bank Statements, Appraisal, Title Report, Payment history, etc. Any credit derogatory claims, such as, collections, late payments, and/or judgements require a written explanation. Any Large deposits into checking/savings account (usually anything greater than $500), and credit inquiries, within 90 days of application, also requires a written explanations, as well.
The following are not a complete list of what are required all the time, but are intended to give you an idea of what is generally needed from you.
- Paystubs verifying income for the most recent month. Please provide at least 2 paystubs
- W-2s/1099’s for Past 2 years.
- 1040s (Individual Tax Returns) for Past 2 years
- Bank statements for account that will be used for closing costs. Must be dated within 30 days of application date. The past two months and ALL pages must be provided. NOTE: Please make sure that they are actual e-statement copies…if it is online transaction copies, please make sure the url (Website address) is listed and provide ALL pages.
- Explanation of any large deposits (usually $500+) into account that are not paychecks.
- Copy of all down checks that are made as well as any account statements that come after this initial request.
- Copy of Driver’s Licenses.
- Copy of your homeowner’s insurance policy if available or name of your insurance company and broker with a phone number. (REFI ONLY)
- Copy of cleared checks used to pay last homeowners insurance, county/township taxes and school taxes. (REFI ONLY)
- Copy of your Green Card (Front and Back), or If you are NOT Legal Permanent Resident, please provide copy of your visa, and/or Employment Authorization Card (EAD) (Non-US Citizens ONLY)
- Approved for Closing
Once Processor has gathered all required documents, it is sent to an Underwriter. Underwriter makes determination whether the application is deemed acceptable. If it is, the loan is put into Conditional Approval status, and Closing Disclosures are issued. If it is not, the loan is put into suspense, and Borrower is required to submit additional documentations in order for Loan to be put into Conditional Approval status.
After Closing Disclosures have been issued, the Settlement/Closing occurs, this is when you, officially buy a home (Purchase), or refinance your Mortgage (Refinance).
Borrower should bring:
- Cashier’s Check for your Down Payment/Closing Costs, if required. Personal checks are NOT Accepted
- 2 Government Issued Identifications- Passport/ Driver’s License/ Military ID (CAC)/ Social Security Card/ etc. (Per Patriot Act, we as a Lenders are required to collect 2 pieces of Identifications.)
Apply for a mortgage online Now! https://goo.gl/NCOe4f
Direct: (610) 628-3444
Cell: (717) 481- 0499
Fax: (484) 205-2025
NMLS ID: 184633