What Happens After You Apply?

The time it takes to complete the loan process varies for each application. Here is a list of the stages required to process a mortgage. Remember that completing your application accurately and fully will help speed up the process.

Processing

After you apply, a loan processor will collect documents and verification to support your request for a loan. The time in processing will vary depending on the type of loan and how quickly the processor receives the documents needed. Much of processing involves help from other sources, such as:

• Appraisal - An appraiser will judge the value of the property, generally based on the recent sales in your market.
• Credit Verification - We'll request a credit report through a credit reporting agency to verify your outstanding debts and payment history.
• Income Verification - In addition to the documents we request from you, we'll ask your employer to verify your income.
• Asset Verification - To confirm that you have sufficient funds required to close on your mortgage.
• Previous Housing Verification - We'll request the history of your rent or mortgage payments from your lender or landlord.

Underwriting

Once the application is processed, your processor will submit the complete package for review. The Underwriter compares your loan request to the guidelines of the lender or its investors for the type of loan. Then the underwriter issues a decision on your application based on established investor guidelines.

Closing

Closing occurs when you sign the papers for your mortgage loan, and when the property is transferred, if your loan is for a home purchase. Most closings take place at a title company or real estate office, but the location procedures vary by state.

What You Need to Bring to Application

Mortgage application checklist -
Information required at application:

Income

• Signed copy of agreement of sale or copy of deed - if refinance.
• Current pay stub and W2s for two years.
• Names and addresses of employers for past two years.
• Details of all other continuing income sources.

Assets

Names, addresses, account numbers and balances for:

• Checking accounts
• IRA's, 401K's and Keogh
• Savings accounts
• Credit Union
• Investment and stock accounts
• Gifts - complete details of all monetary gifts

Debts

Names, addresses, account numbers and balances for:

• Charge accounts
• Personal Loans
• Auto loans
• Alimony and child support payment
• Student loans
• Current mortgages

Self-employed borrowers

Additional information required for commissioned or self-employed persons:

NOTE: A borrower who has an ownership interest of 25% or more in a business is considered to be self-employed.

• Signed copies of last two years federal tax returns (1040s) - with all schedules
• Copy of partnership return for two years (if applicable)
• Current balance sheet
• Most recent profit and loss statement (no more than 120 days old.)