Application
The loan approval process generally begins with an initial interview where the prospective home buyer and the mortgage professional meet to discuss the potential loan. You will need to bring information 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 for which they can qualify. This step is called pre-qualification and can save you much time and trouble by making certain you are looking in 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 the address of your bank branch,
along with checking and savings account statements for the
previous 2-3 months
- Pay stubs, W2 withholding forms, tax returns for two years, or
other proof of employment and income verification
- Divorce settlement papers, if applicable
- Credit card bills for the past few billing periods, or canceled
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 the down payment
and/or closing costs. This letter simply states that the money is
in fact 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 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 pre-qualification.
Peens Mortgage Group will begin the work of verifying all the information you've provided. This process can take anywhere from one to six weeks, depending on the type of mortgage you choose, whether you're buying a home outside your local community, or a host of other factors.
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'll also get a statement that shows your estimated monthly payment, the cost of your finance charges, and other facts about your mortgage.
For many home buyers, this waiting period can be nerve-wracking. So stay in touch with your mortgage company, be prepared to answer any questions that might come up -- and remember that mortgage companies are in the business of making loans, not denying them.
Some home buyers find the closing process to be one of the most intimidating aspects of buying a home because it's so unfamiliar. Peens Mortgage Group’s goal is to be there for you every step of the way. |
