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Navigating the Mortgage Loan Territory

November 30, 2012

Getting a mortgage loan need not be too scary, according to Kevin Ruby, Senior Loan Officer with Community Mortgage, a Grant Preferred Lender. Becoming familiar with the terms, conditions, and requirements and their meanings will optimize communication and instill confidence throughout the closing period. Kevin recommends the following: Maintain the Same Financial Picture During the Process Assessing an accurate profile of your credit and overall fixed financial obligations is crucial to obtaining and securing a home loan. Not only does Community Mortgage run a credit report upon the start of the home loan process, but we are required to do so again within three days of closing. So when we say, “No shopping until after the loan closes”, we mean it. Just one new line of credit, diminished available credit, or late payment on an existing account can make a difference. Documentation of Funds/Transfers/Gifts If you find the need to transfer funds from one account to another, or receive gift funds for down payment assistance, consult your loan officer for specific guidelines and documentation necessary to provide the paper trail needed to satisfy underwriting requirements. Consider the Source ($) Showing consistency in your financial transactions assists in a loan approval. Avoid surprise deposits or withdrawals to your accounts that would require further explanation. Up front costs associated with your home purchase, such as earnest monies and appraisal fees, will be credited on your settlement statement, provided payment documents (cleared bank checks) and are available prior to closing. 30/60 Cycle The loan process is based on a 30 to 60 day cycle. Income verification from paystubs is based on the most recent 30 day cycle and bank statements 60 day cycle. So, if you get pre-qualified for a loan and 60 days later you purchase a home, expect to furnish updated paystubs and bank statements to complete the file. IRS Income accountability takes place by reviewing your paystubs and other proof of income against what IRS tax transcripts reveal. If there is a discrepancy, further documentation is required. Appraisal Once there is a fully executed sales contract in place, ordering an appraisal is the way to obtain a professional report of property value. It is an upfront cost that can be credited towards your down payment at closing. Homeowner’s Insurance Decide who will be providing you with homeowner’s insurance quickly. An accurate cost of your policy is needed for underwriting, along with your insurance agent’s name and contact information. Community Mortgage experts will see you through every step of the way. Connect with a loan officer and discover the Community Mortgage difference. In Touch. On Time. Call 901-759-4400 or visit www.communitymtg.com.