No doubt, getting a mortgage can be a daunting experience.  Because your whole financial profile will be under scrutiny, you may at times feel violated.  You'll wonder, what is my loan officer going to ask for next, my blood type, one of my kids? But seriously, if you were lending someone a lot of money, wouldn't you be asking them everything?

•   2005 & 2006 W-2's

If self-employed: last 2 years personal federal tax returns and the following based on type of  ownership...

              » Sole proprietorship – last two years federal tax returns   with all schedules.
              » Partnership – IRS form 1065 and K1s for last two years

» Corporation – IRS form 1120 for last two years
          » S Corp. – IRS form 1120s and K1s for last two years
             » LLC – IRS form 1040, 1065 or 1120, and K1s for last two years.

It would be helpful to know a little of your credit history.  Below is a link where you can get a free copy of your credit report once a year from all 3 major credit bureaus.  The report is free, but if you want to see your credit scores, the cost is minimal. If there are discrepancies on your report, you may dispute them online! 

  https://www.annualcreditreport.com/cra/index.jsp

Mortgage 102

Steps to Your Home Loan.....

1.      Choose a Loan –

This is the prequalification process.  You’ll discover how much house you can buy, how much of a monthly payment to expect, how much closing costs is involved, and what else to expect during the loan process. There’s literally over hundreds of products available, so depending on your Credit, Asset, Liability, and Down Payment goal, we can narrow it down to a few product options that best fit you specific needs.  

2.      Choose a realtor or a builder –

You’ll want to choose a realtor that knows the area and the market.  You’ll be spending most of your time with this individual, so it is important that you choose someone you can work with. 

3.      Select your home -

You’ll make an offer and negotiate the purchase price of your property of choice. If your offer is accepted, the specifics such as purchase price, closing date, seller contribution (if any), place of closing, earnest money, etc. are all listed on the contract. Earnest Money which ranges from $500 to 1% of Sales Price is deposited with the Title Company.  Time is of the essence!  So it is imperative, that you understand the contract, and you submit requested documents in a timely matter to ensure we meet your closing deadline.

4.      Complete the Application

Be prepared to submit the requested documents, such as your income and asset information.

5.       Processing

Income and Employment Verification

Property Appraisal: A lender approved appraiser goes out to the property and provides the fair market value or a written analysis of the property value. 

Title Insurance:  This insurance covers you the homeowner and the lender against loss of property due to legal problems or title defects.

Homeowners Insurance:  This insurance covers you the homeowner and the lender against loss or damage to the property. 

6.       Underwriting

Income/Employment, Asset, Credit, Property are reviewed and a decision is rendered.  If additional documents are needed, it is important to provide this as soon as possible. 

7.       Closing

This is when you’ll schedule and attend your closing where all documents are signed, and funds are disbursed, and most importantly, you’re handed the keys. Closings are typically performed at a Title Company or at an Attorney’s office. 

    8.   Barbeque Party

            Once you've moved in, prepare for the barbeque with a few selected family members and friends, including your loan officer!