The Life of a Home Loan

Choosing the Best Program

  • Maximum monthly payment
  • Maximum amount of cash out of pocket
  • Preferred Loan term- fixed, ARM, 30 yr., 20 yr., etc

The Devil is in The Details

  • Loan Application- name, address, DOB, SS#
  • 2 year Residence History
  • 2 year Work History
  • 2 Month Assets History – all investments, all statements, all pages
  • Verification – paychecks for past 30 days, W2s and Tax Returns for the last 2 years

Loan Approval

  • Fully Executed Purchase Agreement
  • Review of final numbers – Purchase price, interest rate, loan amount, property taxes, (HOA if applicable)
  • Seller paid closing costs and Earnest Money Deposit

Confirmation

  • Down Payment
  • Interest rate
  • Mortgage Insurance Options
  • Final Loan Disclosure – must be executed within 72 hours of Loan Approval

Checks and Balances

  • Submission to underwriting – executed disclosures, updated income and assets, lock interest rate, order title and appraisal
  • Underwriting Approval – review approval conditions, request conditions from borrower/ agent, etc
  • Follow up on status of title, appraisal and homeowner insurance
  • Resubmission to underwriting – review and distribute appraisal to borrower and agents, review title and conditions received from borrower, resubmit with required changes

The Finish Line

  • Clear to Close
  • Contract to borrower and agent
  • Finalize closing date and time
  • File submitted to Closing Department to prepare closing instructions/ package
  • Obtain HUD1 and review with borrower
  • Close