Obtaining A Mortgage

Before you begin your home search in earnest, we recommend that you become prequalified for a mortgage. Doing so will allow you to identify the level of properties that you can realistically consider, and move forward with confidence once you've found a home that you wish to buy.

Common loan programs include:

• Adjustable Rate

• 203K

• Balloon

• Buy Down

• Construction/Permanent

• Convertible

• First & Second Combination

• First-Time Buyer

• Fixed Rate

• Government: FHA, VA, State Housing Authority

• Jumbo

• Non-Conforming

The Mortgage Process

The following is an overview of the typical mortgage procedure:

• Mortgage Analysis: Your mortgage consultant will analyze your financing needs, match them to available programs, and then recommend the best options for you and your specific situation.

• Application: This is the procedure of applying and being approved for a mortgage, which should be done in advance of your home search.

• Rate Lock: At any time, based on the guidelines of a particular program, you may have the opportunity to lock in the interest rate, guaranteeing the rate at the time of closing.

• Commitment Letter: Once you have completed your mortgage application, it will be reviewed by one of an underwriter. Upon approval, a commitment letter will be issued detailing the terms of the approval.

• Conditions: At times, commitment letters are issued with conditions — factors that need to be addressed prior to closing.

• Closing: At a time and place convenient for all involved parties, a closing will be scheduled, at which time all paperwork is authorized and signed, and title to the property passes from seller to buyer.

Information Normally Required for a Mortgage Application

Current Housing Scenario

• Do you currently own a home, or rent?

• If you own, what is the unpaid mortgage balance?

• How much do you estimate your home to be worth?

Income Details

• Home address for the past two years

• Your gross monthly income (and your spouse's, if applicable)

• W-2's for the prior two years

• One month of current pay stubs

• Proof of pensions, retirement funds, disability income, and/or social security income

• Proof of income from rental properties

• Proof of investment income

• Proof of child support and/or alimony, paid or received

• If self-employed, 1040 tax returns for the prior two years, current Profit & Loss Statement

Credit History

• A list of all active creditor's names and addresses, types of accounts, account numbers, estimated balances, monthly payment amounts

• Overview of credit history, including any bankruptcies and/or foreclosures Banking Information

• A list of all active banking accounts, including institution names and addresses, types of accounts, account numbers, and current balances

Other Necessary Details

• A list of all other assets, including stocks, bonds, land, and personal property

• Cash value of life insurance policies to be used as down payment

• Copy of the sales contract for selling your current residence (if applicable)

• Social security number (and your spouses, if applicable)

• Veteran's Certificate of Eligibility: DD-214.

By preparing in advance, obtaining a mortgage becomes just one more step in the process, rather than a daunting task. Your mortgage consultant, along with your real estate sales associate, can help you understand what to expect and how to achieve a positive outcome.