MINIMUM SUBMISSION REQUIREMENTS ~ we will not be able to submit your loan without your signed application, 2 years of job and address history as well as the following documents:
- ID/Driver’s License
- One month of paystubs showing year to date income
- One month of traditional Bank statements
- Last two Years of W-2s
- All Federal Taxes for the last 2 years if Self-employed, a Landlord, or have any kind of business expenses
Once you are pre-qualified or pre-approved, you may start looking for a home. The process of shopping for a home is usually done through a Realtor (please let us know if you need a referral- I will send you a few names). Your Realtor will send you active listings, contact and set up home view Listings, help you write up the offer, and accept a check from you for the Earnest Money Deposit (EMD). The Check for Earnest Money goes to a 3rd party who is to remain neutral and hold those funds as part of the down-payment which shows the seller your earnest efforts to do everything in your power to uphold the terms of the contract and close your loan on time.
The first 10-15 days or should be thought of as the “Inspection Contingency” time frame and you will need to make sure you want to complete the purchase or cancel the transaction and obtain your Earnest Money Deposit back. Most homes have minor issues, but in terms of buying a home and to make sure you are not buying a money pit or inheriting issues such as roof or foundation issues. If needed, you will need to request repairs from the seller through your Realtor/Agent and wait for them to tell you if they agree to the repairs or adjust any other terms of the agreement if needed. Your Realtor should also help you find an inspection company to call and set up the inspection appointment.
Ordering the Appraisal is done through your Lender and can take anywhere from 5 to 30 days to receive the report back, typically you will be charged right away. Fees can vary depending on the type of loan, rush fees, location (rural) and if the property is unusual, large or complex such as many outbuildings, on a river/ocean etc.
Once your Loan is approved, it is a “conditional approval” with a list of new documents required. We will send you a list of items needed for your loan to close. You will need to shop for and choose your Homeowners Insurance carrier (you should bundle with your vehicles for up to about a 20% discount) and provide us with a copy of the Policy. We will bind it and pay from the loan costs at closing. After the appraisal report comes in and all conditions of the loan are cleared, you will receive a “Closing Disclosure” which must be signed and dated three business days before the final closing of your loan – these are not the final figures, only preliminary. The final figures are completed by the Title Company once they are balanced with the Bank. Title will schedule the signing of all final documents and let you know the exact amount needed for closing on your loan. This needs to be a wire transfer or Cashier’s Check made payable to the Title Company. Request wiring instructions from Title if this is the only way to bring in the funds, or if you are Singing, Funding and recording all in the same day. That process can take 24 hours, so set it up ahead of time and ask Title for wire instructions to take to Your Bank who will send the exact amount instructed to Title.