Mortgage Loan Process
If you are just beginning your search, we encourage you to get prequalified. Prequalification can make the home buying process go more smoothly. Many sellers request it when submitting an offer, and it can help you select the home that best fits your budget.
What You’ll Need
Depending on the mortgage plan selected, you may be asked to provide certain documents. Having these items readily available may make the mortgage process smoother.
- Appropriate form of identification (driver's license, military ID, passport, etc.)
- Copy of Purchase & Sale Agreement, or if refinancing, copy of Mortgage Statement
- Two-year residence history
- Two-year history of employment and verification of all income sources
- If self-employed, copies of past two years' federal income tax returns
- Information about deposit accounts including checking, savings, IRA, and 401K
- Name, account number, and outstanding balance of each of your debts
Information regarding assets that will be used as funds to close on the home
There are several items tied to income and credit that are considered when reviewing a mortgage loan request. Based on these factors, our Mortgage Originators will recommend the best options to save money, save time, and provide the best terms.
Debt-to-Income Ratio – This ratio is determined by dividing the amount of your monthly debt payments by your total monthly income. This will help to determine the payment that is most comfortable for your budget.
Income Stability – Another factor in purchasing or refinancing a home is the length of your employment and/or the amount of time you have spent in that field of business.
Credit History – Your credit history includes information provided by the credit bureau(s) and other sources which shows your payment history.
Loan-to-Value (LTV) – This is the ratio of the loan amount divided by the value or purchase price of the home (whichever is lower). For example, if your loan amount is $90,000 and the value/purchase price of the home is $100,000, then $90,000/$100,000 = 90% LTV.
Appraisal - The appraisal is the valuation of a property using several comparisons of similar properties as determined by a licensed appraisal company.