Mortgage pros, Loan Process - Purchase Contract:
Because the property is security for the loan, the loan company will have an appraisal made of the property and you will need to have the following information available:

A copy of the sales contract, including any addendums or additions signed by all parties and showing the full names of the sellers/buyers as they will appear on the new deed, the amount of earnest money deposit and who will be responsible for the closing costs, origination fees, etc.

If the house is to be built or is still under construction - a set of plans and specifications will be needed.

The mailing address of the property, its age and legal description.

The name, address, telephone number of the real estate agent and/or the seller of the property who will assist the appraiser in obtaining access to the property.

Mortgage pros, Loan Process - Personal Information:
Your and any co-borrower's Social Security number, age, number of years of schooling, number and ages of dependents, current address and telephone number. If you lived at your current address less than two years, you will need to furnish your former addresse (Up to seven years) You will also be asked to give your current housing expenses, including rent or mortgage payments, real estate taxes, insurance, etc. You will also need to get the name and address of your landlord or mortgage company for the past two years.

Mortgage pros, Loan Process - Employment History & Sources Of Income:
Your ability to make the monthly payments on the mortgage and to afford the costs associated with owning a home are primary considerations in the loan approval process.

At least two year's employment history with employer's name and address, your job title/position, length of time on the job, salary, bonuses, commissions and average overtime pay.

Recent paycheck stubs and Federal W-2 forms for two years.

Records of dividends and interest received from investments.

If you are self-employed - full tax returns and financial statements for two years, plus a profit/loss statement for the current year to date.

A written explanation if there are gaps in your employment record due to circumstances such as illness or layoffs, or for any other reason.
you will have to sign a Verification of Employment (VOE) form or a general credit authorization form. This will be sent to your employer to verify your employment and earnings. One will be sent to previous employers if you have been on the job less than two years.

If you are relying on income from other sources such as rental property, Social Security, disability payments, child support, etc. You will need to provide adequate proof of the source. Appropriate documents could include canceled checks, copies of leases, Federal tax returns, certification of benefits, divorce decrees, etc.

Mortgage pros, Loan Process - Personal Assets:
*All bank accounts, both checking and savings, money market accounts with the name and address of the institution, name on the account, account numbers and current account balances.

*Recent bank statements for at least two months.

*Current market value of stocks, bonds, CDs and other investments.

*Vested interests in all retirement funds.

*Face amount and cash value of insurance policies in force,

*Make, model, year and value of automobiles owned.

*Address and market value of any real estate owned along with amount of any rents collected,
mortgage owed on the property, monthly mortgage payments and a list of monthly expenses for
investment properties

*Value of other personal property such as furniture, firearms, hobbys, etc.

Mortgage pros, Loan Process - Personal debt:
You will be asked to itemize all of your current bills, loans and other debts, including current balances and monthly payments. Debts include automobile loans, credit cards, other retail store accounts, finance company, bank and credit union loans, existing mortgages, etc. You will need to give the account/loan number, monthly payment, number of payments remaining and the outstanding balance.

The information you provide on the loan application will later be verified by a credit report ordered by us. Like employment and deposit verification, differences between your figures and those on the credit report will raise questions and may delay the approval of your loan. It is to your advantage to take time to get your data right prior to filling out the loan application.

If you have had credit problems, you should inform us promptly. We recognize that unemployment, illness, marital problems, or other financial difficulties can temporarily impair your credit rating. Provide a written explanation of the circumstances regarding the problem to be included with the loan application. We will consider such a written explanation as part of the underwriting analysis. Chronic late payments, judgments, or loan defaults, however, severely damage your credit standing and may prevent you from obtaining the financing you need to complete the purchase.

If you have been through bankruptcy or foreclosure proceedings within the past seven years, be prepared to give full details and copies of applicable documents regarding them.

You will also be asked to explain the details if you are obligated to pay alimony, child support, or separate maintenance.

Mortgage pros, Loan Process - Additional Information needed:
You will be asked to sign a section of the loan application which contains your certification that the information you have provided is correct to the best of your knowledge and your consent to the loan company to be able to verify the application data.

The last part of the application form requests information on the race and gender of the applicants. The Federal Government uses this data to monitor compliance with fair housing and equal credit opportunity laws. (This information is strictly voluntary on your part and has no affect on your loan application. But the loan company is required by Federal law to request the information)

When any circumstances surrounding a loan application comes up, the loan company may require additional information/documentation regarding you or the property even after the application has been submitted for approval.

At the time the application is taken, you will probably be asked to pay for the credit report and appraisal fees.

Mortgage pros, Loan Process - After The Loan Application:
After the loan application has been completed, it will be turned over to our loan processing department and then to the underwriter, where the decision to approve or reject the loan will be made. Loan processors call to confirm the information you provided, or send out the Verifications of Employment and Deposit and order the credit report, property appraisal, and other documents. The time it takes to receive these documents affects the length of time required for approval of the loan. If you are transferring into the local community, it may take longer to receive the credit and employment information.

Within three business days after completing the application, we must provide you with a "Good Faith Estimate" of the anticipated closing costs. It will show costs associated with the loan settlement, such as origination fees, mortgage insurance, title insurance, escrow reserves, and hazard insurance.

Within the same three days we will also send you a Truth-in-Lending Disclosure statement. This statement shows, among other things, the estimated monthly payment. The total cost of all finance charges on your loan is also shown, stated as an annual percentage rate (APR). The APR represents the dollar amount of finance charges you pay either up front or over the life of the loan, converted to an annual interest rate. Since the APR includes origination fees and other charges, as well as interest on the mortgage loan, the APR is usually higher than the interest rate of the loan.

Mortgage pros, Loan Process - The Closing Process:
After your loan has been approved by an underwriter, it is sent to the closing department.Everything is checked again for accuracy and a closing package is forwarded to the approved closing agent.

The closing agent represents the lender and will conduct the closing. The closing agent at this point has run the title search and insured that the property is able to be conveyed by the seller without any encumbrances. The closing agent checks the survey and makes sure that the lender has proper coverage. The borrowers may insure their coverage in regard to survey and other title matters by purchasing an owner's title insurance policy issued by the closing agent.

Items typically requested for the borrower to bring to the closing are a one year's paid hazard insurance policy, a certified (or cashier's check) for the cash needed for closing.

The closing agent will obtain the necessary signatures on the closing documents and disburse the money.