THE LOAN APPLICATION PROCESS
Once you and the sellers have agreed on the price and terms of a contract, the next step is the loan application. Sometimes we may prequalify you before finding your home.
First, the preliminary information form is completed with a loan originator. The loan originator's goal is to expedite all the necessary paperwork and information as quickly as possible, including ordering a credit report and appraisal of the property. You will need to furnish the lender with the following information:
GENERAL
- Photo I.D. (Driver's License) and Social Security card.
- Residence addresses for past 2 years and addresses of any investment properties owned.
- Home, address, phone number of landlord for the past 2 years.
- Names, addresses, phone number of employers for the past 2 years.
- If applicable, copies of divorce decree and separation agreements (adjudicated).
- If applicable, copies of bankruptcy filings and discharges within the past 7 years.
- Certificate of Eligibility and DD-214 (for VA loans only).
- Personal check for credit report and appraisal.
WHAT YOU EARN
- Most recent 2 months pay stubs.
- Most recent 2 years W-2's and K-1's.
- Last 2 years Federal Tax Returns.
- If applicable, proof of 12 months receipts of child support and/or alimony.
WHAT YOU OWN
- Address and copies of payment coupons for all real estate owned.
- Most recent 3 months bank statements (checking and savings).
- Copy of Certificate of Deposits.
- Copies of 2 months Stock/Bond Brokerage account statements.
WHAT YOU OWE
- Current statements on all revolving accounts including credit card accounts.
- Coupon Book on all installment loans including all mortgages, students loans, auto loans/leases and co-signed loans.
The information you provide the lender is strictly confidential. The application generally takes place at the lender's place business. All people who will be on the title as new owners should be present. The application normally takes about one hour and you will be required to pay in advance for your credit reporting agency and will cost between $65.00 and $75.00. The appraisal is required by the lender to determine that the amount of the loan does not exceed the appraised value of the property and normally ranges from $300.00 to $375.00. These are the only charges required by the lender prior to the closing.
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