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OBTAINING A MORTGAGE: GUIDE & TIPS

Determining what price home you can afford depends on how much of a monthly payment you can afford and how much a lender will loan you.

Lenders determine your loan qualification based on your credit history, income and current debts.

WHAT CAN YOU AFFORD?

Loan pre-approval prepares you to make a competitive offer and typically, most sellers will require a pre-approval letter before considering any offers.

Getting pre-approved means you can be confident about receiving full loan approval before investing more time and money on inspections or appraisals.

Pre-approval requires:• Credit score and report check• Documentation to verify income, assets, liability

and real estate owned.

With Greenpath, your prospective loan is run through an automated underwriting engine that produces the required conditions to obtain full loan approval.

PRE-QUALIFY FOR YOUR LOAN

Lock or float your rate, which secures your mortgage choice and your price range. We will also order an appraisal.

FLOAT: You may lock in at current rates any time up to 10 business days prior to closing.

APPRAISAL: A formal, written estimate of the home’s current market value, to ensure that a title commitment is ordered.

FINALIZE THE APPLICATION

You can expect to receive a welcome call from your home loan processor, who, along with your mortgage consultant, will be a primary contact. The processor will provide you with the status of your mortgage application and can answer your questions.

The processor is responsible for:• Making sure you have all necessary contact

information• Requesting any outstanding documentation

or other items to facilitate your approval• Confirming and managing your closing date• Submitting your loan package to

underwriting

RECEIVE A WELCOME CALL

CONDITIONAL APPROVAL. The terms and conditions under which we will close your loan – we cannot close until all approval conditions are satisfied. Your home loan processor will submit a final package for the underwriter to sign off on.

FINAL APPROVAL. Issued by the underwriter when they receive and review all conditions. Once this occurs, the file is handed off to closing for the final stages of the loan.

LOAN DOCS. The closing department will generate loan documents for Escrow, who will then prepare documentation. A signing appointment with a notary will be set up, in which you will sign final documentation.

APPROVALS & LOAN DOCS

A closing date will be arranged, and you will receive a copy of the HUD-1 Settlement, which shows all the closing-related costs. You will be notified of the exact amount of money you will be required to bring to closing—obtain a certified cashier’s check for this.

• You will receive instruction on the amount and timing of your first mortgage payment.

FINAL CLOSING STEPS

Time is of the essence; it might be a little tedious but it is imperative to turn in your documentation on time.

Have these documents handy because these requests are standard and will almost always be required:

• Copy of a valid driver’s license• Most recent 30 days of pay stubs showing

YTD earnings, SSN name and employer• W-2s from the last two years• Full personal, and if applicable, business tax

returns for the last two years• Most recent two months or last quarterly

statement for asset accounts, including checking, savings, stocks, bonds, mutual funds and retirement accounts

Further documentation may be required after the first initial loan processing. It’s a good idea to keep these documents readily available during the entire process!

TOP LOAN TIPS:BE PREPARED.

It might seem like this intrusive process requires way more documentation than necessary. We try to take the anxiety out of this process by being transparent – there is a rhythm and reason for every aspect of the loan application! Everything must be documented and explained to the underwriter.

During the processing of your loan, there are certain things to keep in mind that may affect the outcome of your loan request.

Your loan could be affected if you:• Quit your job or get another job, unless it is in

the same line of work and for equal or more pay• Change bank accounts or transfer money within

your existing bank accounts• Make counter deposits at the bank of more than

$500 which are not attached to your pay• Purchase a car or take on any additional debt• Charge a large amount on existing cards• Apply for credit or co-sign on a loan for anyone

TOP LOAN TIPS:ACCEPT THE INEVITABLE.

We wouldn’t ask if we didn’t need the specifics! The more thorough your proof, the chances of getting approved are much higher.

KEEP ALL ACCOUNTS CURRENT. This includes mortgages, car payments and credit cards.

KEEP COPIES. This includes paycheck stubs and any statements on bills being paid off through the loan process.

DON’T BE LATE. Make payments on all accounts on or before the due date, even if the account is being paid off.

QUESTIONS? ASK US!We’re here to guide you through the entire loan process, from determining your abilities to closing day.

TOP LOAN TIPS:IT ALL COMES DOWN TO

PROOF.