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Required Documentation
For many a home buyer,
selecting and applying for their mortgage is at least a little bit scary. But it does not have to be if you know what to expect - and what we are expecting from you.
The first step is the
most important. If you start the process with a quality lender and a good loan officer, you are off to a good start. If you have the right product at the best
rate, you are off to a great start. Our Loan Officers can discuss all of your options with you and are qualified to evaluate your financial situation and match your needs with
the best available type of mortgage.
It may seem we need to
know everything about you - but actually all a Loan Officer needs to know about you is your employment and finances, and information about the home you are buying.
However, you will need to provide quite a few details about these topics, and your application process will go much more smoothly if you are prepared.
If you have had credit
problems, be prepared to discuss them honestly and be ready to provide a written explanation. We know there can be legitimate reasons for credit problems, such as
unemployment, illness or other financial difficulties. If you had a problem that has been corrected, and your payments have been on time for a year or more, your credit will probably be considered satisfactory.
We will begin the work of
verifying all the information you have provided. This process can take anywhere from one to six weeks, depending on the type of mortgage you choose, whether you are buying a home outside your local community, and other factors. Within three business days after your application, we must give you an estimate of your closing costs. You will also get a statement that shows your estimated
monthly payment, the cost of your finance charges, and other facts about your mortgage.
If you do not qualify for automated underwriting and you are using a Conventional loan program, and you have less than a 20% down payment, your loan application is approved by TWO Underwriters. The first Underwriter would be the individual that works for the Lender you made your application to. When that Underwriter is satisfied that you are approvable, the application is then sent to a Private Mortgage Insurance Underwriter. This Underwriter reviews your application to make sure that you fall within the guidelines of it's own firms rules & regulations. If you are not approvable by them, then your Lender will send your application file to another private mortgage insurance company, and on and on (some of the companies are: AMERIN, CMAC, GEMISCO, MGIC, PMI, UG, and others).
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