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Frequently Asked Questions
How much house can you afford?
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 | W-2s for the last two years. |
| Signed tax returns for the last two reporting years (business and personal). |
| Pay stub(s) for the last 30 days. |
| Complete names and addresses of all employers for the last two consecutive years (including dates of employment and gross monthly income). |
| Previous addresses with dates you lived there, covering 2 years and including landlord names & phone numbers. |
| Bonuses can be counted if the buyer has received it for the past two years. |
| Overtime may be listed as part of your income. |
| Social Security and disability payments. A copy of the most recent award letter must be provided along with a recent check stub or copy of a bank statement if deposited electronically. |
| Pension income can be listed as part of your income. You will need to provide a check stub and any forms showing duration of payments. |
| Rental property income. This information can be provided on income tax returns for the past two years verifying rental income. The applicant may have to provide leases. |
| Child support. You will need to show proof of receipt, through a printout from the courts or 12 months of canceled checks. (Payments must have been received for at least 12 months on time and must be scheduled to continue at minimum of 36 months to count as income. |
| Alimony. You will need to provide a copy of your divorce or legal separation documents which documents alimony to be received. You will also need to show proof of receipt, through a printout from the courts, 12 months of canceled checks or tax returns. |
Other Possible Documentation
| Information on non-reported mortgage or home equity loan account(s) with lender contracts. | ||||||
| Name and address of present landlord along with last 12 months' canceled rent checks. | ||||||
| Divorce decree or separation agreement to document alimony and / or child support. | ||||||
| A copy of any final & court stamped bankruptcy papers with all schedules. | ||||||
| If refinancing, specific property estimated value, taxes, insurance premiums. | ||||||
| Full copies of purchase agreements. Property documentation:
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Depending upon the product and program for which you are applying, additional information may be required.
Why do you require this information?
As mentioned before, checking with me FIRST by phone or in person, can help eliminate over-documentation and simplify your process. The ultimate funding source for many of my permanent loans is the mortgage-backed securities market. The value of this market to the borrower is in the availability of longer fixed-rate terms and amortization periods, competitive rates and more consistent availability of funds. These markets work because of size--the aggregation of large numbers of loans. This requires consistency in the underlying mortgages. For that reason, a significant degree of due diligence is necessary which can only be accomplished by fully analyzing the important risk factors relating to both the property and the borrower. Bottom line is that lots of information is needed to fulfill these underwriting requirements. This increasing standardization over time has resulted in more stable markets and available funds, but at a cost of increased paperwork.
I place permanent loans with many different sources in order to find the best rate and mortgage product for each client. Time to close varies by source. Assuming that complete information required from you the borrower is received promptly, an average time to close is 30 to 45 days or less, from the initial decision to proceed with the application process. However, closing in as few as 10 days or less in bail-out or other special circumstances is also possible. Process time for construction and renovation loans depends upon the specifics of each project and the stage at which it is brought to me for action.
Can't I find financing myself?
Yes. However, by utilizing the services of a professional you gain their specialized knowledge, expertise and ability to get the job done as quickly and cost-effectively as possible. I'm am paid to work on your behalf to locate the best loan program from across the spectrum of home mortgage markets. Importantly, my services also include troubleshooting your deal, i.e., packaging and monitoring your loan throughout the various stages of the process to be sure that you close on time and at the quoted terms. I work with a team approach using local professionals to complete your loan as agreed!
How does the loan approval process work?
The Borrower's Certification & Authorization and Loan Application are the first steps; more information and possibly process-related fees are collected up-front. With the majority of mortgage products we offer for permanent loans, basic information is provided to the lender for preliminary underwriting--more specific data required in some cases than in others, (yet another good reason to call me FIRST to help clarify). If this initial review is positive, a formal application is issued to the customer. If accepted, the balance of documents and information necessary for loan approval is gathered, appropriate fees paid, and third-party reports ordered. Upon underwriting approval and fulfillment of any underwriting conditions, closing-related items are ordered-- e.g., title insurance commitment, survey, hazard insurance, etc. In any case, I'll fully explain up front the applicable process flow and advantages that may apply with each.
