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In order to
help you understand exactly what goes on during the application and approval
process, we have included a step-by-step explanation below.
Your Application
-This occurs
between days one and three.
-You
complete a loan application provided by a licensed loan officer called a 1003 form. Once you fill that out, your credit report is
pulled. You must then supply the following:
-If you work
for a company, you'll need to provide:
Your name,
present address and social security number.
-
Two (2) previous years'
W2s.
-
Two (2) most recent
pay-stubs.
-
Your current mortgage
company's account information.
-
Insurance declaration or
agent's name.
-If you are
self-employed, you'll need the following:
-
Two (2) years worth of
tax returns for both personal and business.
-If you file
your taxes as stated income you'll need the following:
-
Two (2) years of business
licenses.
-Within 3 days
of your application, after you have submitted all the required paperwork, you
will receive a RESPA package. This package details the approximate costs
associated with applying for your loan.
Opening the File
-This occurs
between days 3 and 5.
-We order a
property appraisal, title commitment, and a loss payee endorsement for
homeowner's insurance. We also request a verification of employment (VOE) along
with a verification of mortgage (VOM) and a payoff letter. We also request a
verification of Deposit (VOD) and await all these documents return.
-A VOE is
where an employer is asked to verify for each borrower on the loan, the last two
years of employment history and gross income. The employer is also asked to
state the probability of continued employment.
-A VOM is
where your mortgage holder provides the mortgage payment history.
-A VOD is
where your financial institutions are asked to verify the existence of the
stated funds in your account(s).
Processing
-Occurs
between days 5 and 25.
-The Home123
Mortgage Consultant reviews your credit report and verifies your debt and
payment history. The Advisor does this by reading VOE's and VOD's that have been
returned to Home123. If there are any late payments, collections, or judgments
shown on the credit report, a written explanation is required from you the
borrower.
-The Home123
Mortgage Consultant also reviews the appraisal and checks to see if there are
any property issues that may require additional comments by the appraiser.
Lender Underwriting
-Occurs
between days 15 and 25.
-The
underwriter reviews the loan package to determine whether the loan is
approvable. If more information is needed to make a decision, the loan is put
into suspense and the additional information is requested from you. It is very
important that you respond immediately to any request for additional information
at this point in the loan process. If you don't, you may risk delays in closing,
thereby not receiving your money in a timely manner.
Pre-Closing
-Occurs
between days 17 and 27.
-Once your
loan is approved, the approval is reviewed by you. If it meets your
satisfaction, a closing date is scheduled.
Closing and Pre-Funding
-Occurs
between days 27 and 30.
-You sign
the required loan documents. You're required to have proof of identity, such as
a driver's license. You may also be required to provide documentation that we
make contingent to loan approval.
Funding
-Varies
based upon whether your transaction is a refinance or new purchase.
-If your
loan is a refinance, you will receive your money three business days after the
closing.
-If your
loan is a purchase, the seller will receive their money at the closing
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