If you are considering applying for a new mortgage loan or refinancing a current mortgage, here are some guidelines on getting the process started.
First you will need to complete an application consisting of the borrower’s name or names, social security number (s), property address, an estimate of the value of the property, loan amount, and gross income and expenses.
The review process will consist of verifying income by tax returns, current pay stubs, and copies of current bank statements. A credit rating will be pulled and evaluated. Loan rates are based on beacon scores. Debt to income will be figured, based on reoccurring monthly obligations, plus new payment amount and current gross income. Total debt to income should not be more than 38%.
Next would be establishing collateral value, which is done by having the property appraised by a licensed appraiser. The loan would be based on 90% or less, loan to value.
Your loan most likely will be subject to insurance and taxes being escrowed. This means you will pay taxes and insurance with your monthly payment and the financial institution will pay these when due.
Closing costs will need to be paid when your loan closes, consisting of appraisal, title insurance, inspection, document preparation, recording, and Bank fees. These fees are in addition to your down payment.
Please stop in and talk with our mortgage loan officers Sheryl D Richert or Diane L Ross. They would be glad to help you with this process.