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The Loan Process
The following is a step-by-step outline of what to expect during the loan application process
1.) Application Bring all required documents (Also, see the Application Checklist.) A good faith estimate will be prepared for you of closing costs Truth-in-Lending statement is presented by the mortgage originator
2.) Processing Verification of employment Verification of deposits, credit reports are run on all parties involved in the purchase
3.) Underwriting Clear conditions authorize loan - a few days turn around time
4.) Purchase Homeowner's Insurance
5.) Escrow Determine funds needed for closing Schedule appointment for closing Prepare deed and mortgage note Closing and Title Transfer
To speed up the application process, bring the applicable following items to your loan application appointment.
Signed copy of Purchase Agreement plus all Addendums.
Tax and Legal description on subject property.
Residence addresses for the past two (2) years.
Past two years' W-2 statements or 1099’s
Computer generated paycheck stubs for last 30 days
Names, addresses and phone numbers of Employers for past two (2) years.
Past two (2) month’s statements for all Checking, Savings, IRAs, 401Ks, Money Markets, Profit Sharing and evidence of Stocks and Bonds. Document all recent large deposits
In income received for commissions, bonuses, partnership(s), corporation(s), or if self-employed, requires two (2) year’s Personal Federal Tax Returns with all Schedules along with a current P&L Statement and Business Balance Sheets and past two (2) years’ Partnership and/or Corporate Returns, if applicable
Cancelled checks from rent or mortgage for the last 12 months, and name and address of any landlord(s) within the last 12 months
Names, addresses, account numbers, monthly payments and balances on all open loans and revolving credit account
Copy of Bankruptcy Petition listing all creditors and copy of Bankruptcy Discharge Papers (if applicable). Please provide letter of explanation as to why the Bankruptcy occurred
Copy of Driver’s License and Social Security Card (VA Loans Only)
Certificate of Eligibility and DD214 Discharge Paper (VA Loans Only)
Application fee (check or money order)
Copy of divorce decree and/or separation agreement
A "Friend of the Court" letter stating the amount of any alimony/child support payments and notification that the account is current.
1040 tax forms (if you’re self-employed) for the past two years, 1120 Corporate Tax Returns (or Form 1065 for Partnerships) for the previous two years, year-to-date profit-and-loss statement and balance sheet signed by your accountant
1040 tax forms for the past two years (including schedules) if you own income properties or if your income is based on commission or bonuses
Fortunately, we offer references for mortgage consultants, he/she should be able to offer valuable lending expertise and advice and answer all your questions while ensuring that your loan application process progresses as smoothly and quickly as possible
Questions? Contact - Peggy Rahe – direct dial 937-361-9599 or Peggy@PeggyRahe.com
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