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The Loan Process
Anyone who has ever bought a home or been through the mortgage process knows it can be an overwhelming experience. Here at Inman Mortgage Group we are committed to simplifying the process as we specialize in all aspects of real estate sales and finance. Our goal, simply stated is to eliminate the headaches and frustration while making the entire process of buying a home a positive experience!
Basic Outline of the Mortgage Process
It is important for borrowers to understand the sequence of events following their application. By better understanding the process, consumers can help avoid unnecessary delays.
Your loan application is submitted through your loan officer or broker, who becomes your representative through the entire process.
The Online Application
Once we receive your online application we will personally contact you to discuss your specific loan request. Contact can be done via e-mail, phone or fax, whichever is most convenient for you. Depending on your specific loan request and the location from where you are calling, we will schedule an appointment to meet with you or overnight the actual loan package. This package contains required disclosures that include a good faith estimate, a Fannie Mae 1003 Loan Application, etc.
Depending on your personal circumstances and the specific type of loan program requested, the following is a list of items customarily required when requesting a real estate loan.
Income Items
- W2 forms for the last two years
- Paystubs covering a 30 day period
- Federal tax returns (1040's) for the last two years, if:
a) you are self-employed
b) earn more than 25% of your income from commissions or bonuses
c) own rental property
- A year-to-Date Profit and Loss Statement (for self employed)
- Pension Award letter (for retired individuals)
- Corporate or Partnership tax returns (if applicable)
- Social Security Award letters (for those on Social Security)
Asset Items
- Bank statements for previous two months (sometimes three) on all accounts. All pages.
- Statements for two months on all stocks, mutual funds, bonds, etc.
- Copy of latest 401K statement (or other retirement asset)
- Explanations for any large deposits and source of those funds
- Copy of HUD1 Settlement Statement on recent sales of homes (see glossary for HUD1)
- Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
- Gift letter (if some of the funds come as a gift from a family member)
Gifts also require:
1) Verification of donor's ability to make the gift (bank statement)
2) Copy of the check used to make the gift
3) Copy of the deposit receipt showing the funds deposited into bank account or escrow
Credit Items
Other
- To document receipt of child support (if you desire to show it as income)
- Copy of Divorce Settlement (to show the amount)
- Copy of purchase agreement (if you have already made an offer
- Copies of twelve months canceled checks to document actual receipt of funds
FHA Loans
- Copy of Social Security Card
- Copy of Driver's license
VA Loans
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Copy of DD214 - if you were in the military, you undoubtedly know what this is because when you get out of the service they constantly remind you to never ever lose this form. For those that were not in the military, it is basically a one page summary of an entire military career, including test scores, important dates, awards, and other military data.
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Statement of Service - All Active Duty Military personnel will need to obtain aletter from Commanding Officer verifying their status and that they are in good standing.
Refinances
- Copy of Note and Deed of Trust on existing loan
- Copy of HUD1 Settlement Statement on existing loans
- Name, address, phone number, loan number of existing loan/lender
Once we have received the completed loan application with the above referenced items, a credit report will be ordered onall borrowers. Once your loan has been Formally Pre-Approved (see comments below) which under most circumstances can be obtained within a maximum of 24 hours from the date of application we will begin our search for the right home. Once you have selected a home, our staff will proceed to open escrow, order the appraisal/preliminary title report and process your file to the specific lenders requirements and guidelines. After review, your file will be sent to the investor for final review, or in certain instances, we will notify you, the seller or the seller's agent via phone, fax or e-mail of any additional supporting documentation that may be required prior to drawing your loan documents.
24 Hour Pre-Approval
Utilizing our direct link (DU/LP) with the secondary market, which sets the qualification guidelines and governs all Savings Banks and FDIC Lending Institutions, we submit your application via online. By having direct access to DU/LP, this allows us to be hands on and most importantly allows our buyers and sellers the security and confidence of a successful close without any costly surprises or unforeseen delays!
Closing Your Escrow and Obtaining the Keys
Once you have selected a home we will proceed with the closing procedures at which time we will lock-in your loan, complete the processing of your application and order the loan documents. The loan documents will then be forwarded to the title company for preparation at which time the escrow officer will contact you to make arrangements for the signing.
Once all the terms and conditions of escrow have been fulfilled, and all closing conditions satisfied, the escrow officer will return the loan documents to the lender for final review. Following the review, which usually occurs within 24 - 48 hours, the lender is ready to fund the loan and advises the escrow officer to record the documents. Once confirmation of recording has been received, escrow is closed and your keys are delivered!
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A Fair Housing and Equal Opportunity Lender.
