Have you wondered what the lending process is and what typical costs are associated with it? Let us explore the lending process and take a glimpse of some very important aspects of it.
Application and Processing
The mortgage approval process begins with you submitting an application through your personal mortgage banker who will also request a number of supporting documents. Once your mortgage banker has received your application and supporting documentation, the file is given to the processing department which verifies the accuracy of the information contained in the application, orders an appraisal, title commitment, and other third party information.
Underwiriting, Closing and Funding
Once processed, an Underwriter will examine the file to certify that it conforms to industry standards and that the appraisal, survey, title commitment and other documentation are acceptable. The closer will work with the Title Company and the real estate attorneys to prepare the closing documents. Once the real estate agent and the seller have signed the closing documents, the lender will authorize the Title Company to finalize the transaction and pay the seller.
Items to Bring To Your Loan Application:
The time required to process a mortgage application can be significantly reduced if alternative documentation is utilized. Listed below are items that may be used in lieu of requesting the information from employers, banks or the Federal Government. The fewer items the lender must order from outside sources, the quicker the application will be processed.
- Check in the amount of $_____________ (for Credit Report and/or Appraisal)
Purchase Only
- Copy of purchase contract and all addenda (signed by all parties)
- Copy of the settlement statement (HUD-1), if you have sold your current home.
- The following will be required on Most Loans
- Name and address of employers for previous two years.
- W2's (time varies)
- Pay stubs for 30 days (2 if bi-monthly, 3 if every 2 weeks, 5 if weekly)
- Tax Returns with all schedules (Sometimes for two years), if self-employed or rental properties owned.
- Corporate Tax Returns, if you own a corporation
- Bank Statements for several months (Varies - savings, checking, CD)
- Most recent quarterly statements (mutual funds, 401k, IRA, etc.) All Pages
- Gift letter and copy of gift check
- If renting - Landlord address and phone number
- Copy of DD-214 (VA Applicants)
- Copy of Certificate of Eligibility (VA Applicants)
- Copy of divorce decree or bankruptcy papers (when applicable)
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Realtor, ABR, e-Pro
Keller Williams Houston Metropolitan
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Online at www.houstonheritage.com
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