An Overview of the Loan Process

Organize Your Documents

A properly documented loan application makes your loan process go smoothly. This checklist will help you gather your paperwork.

1. Deed, Survey (if one is available)
2. Receipts of County & School Tax Bills & Village or City if applicable.
3. For verification of customer identification please provide copy of your driver's license with photo, social security card or passport.
4. Most recent 30 day computer generated pay stubs or most recent check for Social Security/Pension/Disability income, include award letters.
5. All pages of 2 most recent consecutive bank statements for all asset accounts (checking, savings, money market, stocks, bonds, mutuals, 401K's & retirement accounts).
6. Two years of Federal Tax returns required for any borrower with income or deductions from overtime, bonus, commission, rental, union workers, and long haul truckers.
7. Two years of W-2's.
8. If divorced, provide a copy of divorce decree or seperation agreement. Also, 12 canceled checks for alimony/child support checks or status per Support Collection Unit to prove receiptof income.
9. Source of funds for any recent large deposit during the past 3 months.
10. If gift funds are involved, need-copy of gift letter, copy of deposit slip, evidence of withdrawl from donors account. Actual transfer can be conditioned for if not done prior to application.
11. If you have had a bankruptcy within the last 7 years, entire copy of discharge with all schedules.
12. Copy of purchase contract if other property is being sold; or copy of listing agreement.
13. On a purchase loan, furnish Sales Contract of Purchase Agreement with signatures of all parties.
14. On a construction or rehab loan, plans, complete estimates, & specifications fo the home to be built. We will furnish this to the lender's appraiser to determine value.
15. On a refinance loan, if possible, send a copy of your previous title work, and your most recent mortgage statement.

If self-employed, please include:

    1. Copies of last 2 years Federal Income Tax returns with all schedules attatched, re-        signed & dated in BLUE INK.

    2. If 25% or more ownership in corporation or partnership, 2 years of           Corporate/Partnership returns, signed, with all schedules.              

Get Qualified

Getting qualified before you apply for a loan can help you understand how much you can borrow.

When buying a home, you may be pre-qualified or pre-approved. You can be pre-qualified over the phone or on the Internet in a few minutes. Pre-qualification is not as useful as pre-approval. Pre-approval requires a more rigorous process, including verification of your credit, income, assets and liabilities. It is highly recommended that you be pre-approved before you start looking for a home.

Being pre-approved will:

1. Inform you of your maximum affordable home value, and save you from previewing properties outside your price range.
2. Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved.
3. Help you close quickly, since your loan is pre-approved.

Shop Loan Programs and Rates

What loan program is best for your situation? Lenders offer many different loan options:

1. Think about how long you plan to keep the loan. If you plan to sell your home in a few years, you may want to consider an adjustable rate or balloon loan. If you plan to keep your home for a longer time, you may want to consider a fixed rate loan.
2. Understand the relationship between rates and points. Points are considered prepaid interest and may be tax deductible. Each point is equal to 1 percent of the loan. For example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower your rate.
3. Compare different loan programs. With so many programs to choose from, it's hard to figure out which program is best for you. Consult an experienced loan officer who can help you find a loan program that best fits your short- and long-term plans.

Obtain Loan Approval

Once your loan application has been received, we will start the loan approval process immediately. This involves verifying your:

• Credit history
• Employment history
• Assets including your bank accounts, stocks, mutual fund and retirement accounts
• Property value
• Based on your specific situation, additional documents or verifications may be required.

To improve your chances of getting a loan approval:

• Fill out the loan application completely.
• Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
• Do not make any major purchases. Do not buy a car, furniture or another house till your loan is closed.
• Anything that causes your debts to increase might have an adverse affect on your current application.
• Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us.
• Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
• Notify your loan officer before applying for any other credit, including credit cards, personal loans or even with another mortgage company. Some loan programs have strict guidelines regarding your credit score. Credit inquiries may lower your credit score and may have an adverse affect on your loan approval.

Close the Loan

After your loan is approved, you will be required to sign the final loan documents. This will normally take place in the presence of a notary public. Be prepared to:

• Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally NOT accepted.
• Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify the accuracy of the name and address on the loan documents.
• Sign the loan documents. The notary will require that you have your picture ID with you. Some lenders also require to see your Social Security card.

Your loan will normally close shortly after you have signed the loan documents. On refinance and home equity loan transactions, federal law requires that you have three days to review the documents before your loan transaction can close. Purchase transactions do not have a three day rescission period.