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What can I do to speed up the mortgage process?
Top
Respond promptly to requests
for information and documentation.
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What documents will be required?
Top
Review
the following list and provide the documents that apply:
Hourly/Salaried Employees
W-2s Past Two Years
Most Recent Pay Stubs-30 Days
Self
Employed
Past Two
Years Personal Tax Returns
Past Two
Years Corporate, Partnership or Business Tax Returns
Current
Year To Date Profit/Loss Statement and Balance Sheet
Current
Business License
Verification
of Other Income
Social Security, Disability, Pensions or Dividends - Provide
copy
of
most recent benefit statement.
Child Support - Provide a statement showing the dollar amount
received.
Rental/Lease
Agreements - Provide a signed copy of the
agreement(s).
Verification
of Funds
Last
Three Months Bank Statements
Most
Recent Stocks, Bonds, IRA, 401k or Retirement Account
Statements
Copy
of the Purchase and Sale Agreement for present home
if being sold,
and/or the final closing statement if the home has
already been sold.
Gift
Funds - Gift letter to be completed by donor and recipient.
Donor's funds
must verified by a copy of their last bank statement.
Purchase
Transaction
Copy
of Complete and Signed Purchase and Sale Agreement by
both
the Buyer(s) and the Seller(s)
Copy
of Earnest Money Check
VA
Loan Transactions
Copy
of Drivers License and Social Security Card
Certificate
of Eligibility or the DD 214 Discharge Papers
Other
Documentation
Copy
of Divorce Papers
Copy
of Bankruptcy Papers and Discharge Paper
Copy
of Credit Explanation Letter
Copy
of Current Mortgage Statement
Homeowners
Insurance Information - Agents name, company
and phone number.
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What is closing and when does it occur? Top
Your
escrow company closes the loan. They provide services
in connection clearing title, ordering payoffs, preparing the
closing documents, disbursing of funds, etc. Closing occurs
at the end of the transaction and is considered your last step.
- What
is an escrow account? Top
Mortgage
escrow accounts are special accounts set up in which money is
held to pay for property taxes, fire and hazard insurance premiums,
mortgage insurance premiums, and other escrow items. Escrow accounts
ensure that these items are paid in a timely fashion. They are
a guarantee that there is always enough money to pay these bills
when they are due so that the homeowner avoids the risk of lapsed
insurance coverage or delinquent taxes.
Guarantee
that bills are paid on time. Homeowners do not have to worry about
coming up with several large, lump sum payments, each with different
due dates, throughout the year.
Unexpected
increases are taken care of. It is the responsibility of the
mortgage company to allow for possible increases in tax or insurance
premiums.
Mortgage
companies typically cover shortages when tax or insurance payments
increase. It is very common for mortgage companies to pay taxes
and insurance premiums when they are due even though all the
money for these bills has not yet been collected from the homeowner.
Mortgages
have lower rates and down payments because of escrows. Escrows
protect the interest of investors of home mortgage loans by
making them more attractive and secure as investments.
Local
governments save money. Escrow accounts also benefit local governments
by providing a more efficient, less expensive means of tax collection.
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What
is the APR and why is it higher than my note rate?
Top
The
Annual Percentage Rate is the cost of credit disclosed as a
yearly rate. The APR includes the interest rate of the
loan plus costs such as closing costs, pre-paid fees and mortgage
insurance when applicable. The APR is always higher than
the actual interest rate, but has no affect on the interest
rate.
The
APR is the annual percentage rate of the loan being financed.
The APR equals all the interest paid over the life of the loan,
combined with the prepaid finance charges and put into a percentage
form.
Please
note, your interest rate is not affected by the APR, nor is
the amount financed going to affect the loan amount issued.
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