T his is perhaps the most
important part of the home
building process. Vertical works with several
reputable mortgage companies and we happy to refer you to them if you need help.
Our consultants will help you through the entire mortgage process. Below
are some of the typical steps you can expect.
During this process your
mortgage company will ask for information pertaining to your income, assets and
liabilities. Once this information has been collected your representative will
recommend a loan program that best fits your financial needs. Prior to loan
application you will need to determine the amount of down payment you will be
making towards your new home and collect the following documents that should be
brought with you when you make loan application:
- Most recent paycheck
stubs for each borrower covering the most recent thirty-day period.
- Most recent two years
W-2's and/or 1099's for each borrower.
- Two months of the most
current and consecutive banks/investment/ retirement statements for all your
accounts.
- If self-employed you
will need to bring in the most recent two years' tax returns and copies of
1040's, W-2's, 1099's and or K-1 for each borrower. You will also need a
year-to-date profit and loss statement.
However, if it is more
convenient, most companies give you the ability to complete your loan application on-line.
Credit Report
A credit report will be obtained as part of the loan application process. The
credit report will show your payment history, credit limits, monthly payments
and current balances.
Verification
The financial institution you select will verify the information disclosed on your initial loan application (i.e.
income, assets and liabilities).
Property Appraisal
A property appraisal will be conducted from a licensed real estate appraiser on
the property in which you are purchasing. The appraisal is done to determine the
value on the property being purchased and your loan amount.
Underwriting
A loan decision will be issued based on four factors - income, assets, credit
record, and property value. An Underwriter will review the information on your
loan application and the information collected on your behalf. Additional
information or documentation as required by the loan program guidelines may be
requested.
Interest Rate
You have the opportunity to establish an interest rate guarantee or "lock" the
interest rate during the process up to ten days before your closing. Keep in
mind that interest rates may change somewhat each day. Only you can make the
decision to lock the interest rate on your loan.
Closing
Your mortgage representative and closing agent will coordinate a firm closing
date and time with you.
Schedule a final
walk-through of your new home before closing to make sure it is ready for you
and to ensure that any contingencies specified in the commitment letter about
the home's condition have been satisfied.
Prior to the closing you
must obtain homeowner's insurance with a carrier of your choice. This
information must be provided to your mortgage company within 72 hours of
closing. A representative will provide you with the amount you will need to
bring to closing. Funds needed for closing must be in the form of a certified
check or cashier's check.
Your representative will go
over the settlement charges with you and have you execute the Note and other
applicable closing documents.
Congratulations! You are
now a homeowner! |
