What financial documentation will I need to provide to begin the mortgage approval process?
Documentation such as your most recent pay stub, most recent W2, federal tax returns (plus business tax returns if you're self-employed), most recent bank statements (all pages), and proof of where your down payment will be coming from will be required.
I supplied the requested items. Why am I being asked for more information?
The documentation you provide is reviewed, and sometimes, additional information is required. Questions about non-payroll deposits going into your bank accounts or explaining a change in your income are common examples. This type of information is needed to complete the approval process for your loan.
Why am I being asked to submit explanation letters?
The loan application answers many questions regarding your employment and finances. However, more information may be needed. To best ensure that additional questions are answered accurately, we will ask you to further explain certain situations in writing. This may include, recent credit inquiries, gaps in employment history, derogatory credit, or clarification on the occupancy of the new home.
Can I upload documents securely?
Yes! We provide a secure loan portal specifically for your loan documents. You will have the ability to upload your documents and view them at any time. Please note that emails containing zip files will not be accepted.
How much can I expect to pay at closing?
We will provide you with a detailed Loan Estimate within three business days after your application. Closing costs and other settlement fees, including pre-paid interest, homeowner’s insurance, real estate taxes, and HOA (if applicable) will be outlined in your Loan Estimate. Questions can be directed to your Mortgage Loan Officer or Client Service Coordinator.
Can I use gift funds from family as a down payment on my home?
Yes! Many homebuyers get help from their family to make a down payment on a home. You will be required to complete a gift letter and provide documentation to show the source of the funds and that you are not obligated to repay the gift.
Why am I being asked to source "large" deposits?
Any deposits into your bank accounts being used for a down payment and/or the funds needed for closing will likely need to be identified. You might be asked to provide information about any other bank accounts the funds may have transferred from, proof of stock or liquidation accounts, or the source of any other non-payroll funds. The documentation for down payment and closing costs is required prior to your loan being cleared to close.
What is a "point"?
In lending terms, a point is equal to 1% of your loan amount. Paying points upfront can lower your overall interest rate. Please contact your Mortgage Loan Officer to further discuss what might be required for your loan.
Why do I need an appraisal?
The value of the home you want to purchase is important in the loan qualification process. The lender needs to verify the market value of the home, as well as comparable sales in the surrounding neighborhoods. Your down payment requirement is determined by the purchase price or home value, whichever is less. For a refinance transaction, a percentage of the appraised value determines the maximum amount of money we can loan you.
Why does my credit need to be checked prior to purchasing a home?
A credit report shows your history of making payments on time. The outstanding credit you currently carry is factored into your ability to pay for a new mortgage. Many credit reports have erroneous information posted to them. Even if you're sure you have excellent credit, it's wise to double-check the accuracy of your credit report at the beginning of the loan process. Resolving any errors or disputed items early will avoid troublesome holdups down the road. We can help you determine if there is any incorrect information on your credit report.
What are the top factors that determine if I qualify for a home loan?
It can vary by borrower, but generally speaking, stability of employment and income, proof of funds to close, a stable savings pattern, timely payment of credit, and responsible credit usage are all factors that are considered to determine your eligibility.
How long will it take to receive my formal conditional loan approval?
Once you formally apply for financing, the underwriting timeline is usually 2 business days. Our goal is to make sure your loan closes within the timeline of your purchase contract when buying a home, or within 30-45 days from the date of your application in the case of a refinance.
To ensure these timeframes are met, you will need to work closely with your Client Service Coordinator to provide all requested documentation and needed forms.
How accurate is your mortgage calculator?
The mortgage calculator will give you a very accurate idea about the monthly principal and interest payments on your loan. However, if applicable, you must remember that any taxes (such as city tax and county property tax) need to be added to your monthly expenses on the home.
Do I have the ability to save and finish the online application at a later time?
Yes! You can “save & exit” from our application system. A Mortgage Loan Officer may contact you to offer assistance if you begin an application but fail to complete it in a timely manner.
Do I have the ability to apply for a loan with a co-borrower?
Yes! During the application process, you will be asked if you intend to apply jointly with a co-borrower. If so, information about the co-borrower will be required.
What is eConsent, and do I have to use it?
eConsent allows you to receive documents electronically through a secure loan portal. You will be able to eSign, print, and upload documents as needed. Additionally, you may review documents through your Loan Portal. If you change your name or email address during the loan process, you will need to eConsent again with your updated information. You are not required to accept documents electronically. We do provide the option to send documents by U.S. Mail or to meet in person.