Full Loan Approval is like shopping for a new home,
condo or town home with cash! Let’s walk through
each of the steps in the lending process.
USUAL BASIC ITEMS NEEDED TO MAKE LOAN APPLICATION FOR
ALL PARTIES THAT WILL QUALIFY FOR THE LOAN
W-2 ‘s from last year
2. Paycheck stubs covering the past 30 days showing
your current and “year to date” income
3. Two most recent statements for any checking or other
accounts with down payment funds and closing costs
4. Most recent statement from other investments such
as retirement ac counts, stocks, bonds
5. Any additional source of income such as child support,
6. Depending on your individual circumstance, some additional
documentation may be required to issue your approval.
Upfront approval is subject to a satisfactory appraisal
and no change in financial status during the lending
process. Do not finance a new car during the qualifying
PROCESS OF GETTING A MORTGAGE ….Your
real estate agent will work with your throughout your
mortgage lending process.
occurs before the loan process actually begins. The
lender gathers information about your income, debts
(he may want to run a credit report), your desired down
payment and makes a financial determination about how
much house he feels you may be able to afford. He will
help you determine your monthly payment comfort level.
It is the lenders best guess on your ability to qualify
before actually working up your loan package.
application is actually the beginning of the loan process.
I recommend that you begin with the application before
you start your home search. If you should find a home
before you have made your loan application, then application
should quickly follow. You will need to complete a mortgage
application with the loan officer and supply all of
the required documentation for processing. Various fees
and down payment options are discussed at this time
and you should receive a Good Faith Estimate (GFE) and
a Truth-In-Lending Disclosure (TIL) within 3 days that
itemize the rates and associated cost for obtaining
(3) PROCESSING OF YOUR ESTIMATED LOAN
lender will typically submit the loan to an automated
underwriting system that will provide the lender with
the necessary documentation needed to achieve loan approval
that is personalized to meet the borrowers loan criteria.
“processor” reviews the credit reports and
documentation to verify your employment, debts and payment
history. If there are unacceptable late payments, collections
for judgments, etc. the processor will request an explanation
from you. The processor also reviews the appraisal and
survey and checks for property issues that may affect
final loan approval. The processor’s job is to
put together an entire package for the underwriter.
THE UNDERWRITING OF YOUR LOAN
underwriter is responsible for determining whether the
package prepared by the processor meets all the lender’s
criteria. If more information is needed or the underwriter
has “conditions” that must be met, the loan
is put into “suspense” and the borrower
is contacted to supply more documentation or the conditions
attached by the underwriter have been met.
the underwriter approves the loan, the lender issues
a commitment to lend, clears all contingencies to its
commitment to lend and then is ready to schedules a
closing place and time.
closing will occur, usually at the title company, after
a full loan approval has been received (depending on
several factors, including challenging credit or income
issues or issues with the property that may arise during
the underwriting and approval process). At the closing,
the lender “funds” the loan with a cashier’s
check, draft or wire to the closing agent (usually the
title company) who disburses funds in exchange for the
title to the property. This is the point at which you
finish the loan process and buy the property, subject
to the lenders loan.