o Initial consultation (Purchase or refinance)

Transcription

1 Yur hme financing prcess checklist As yu prepare t purchase a hme r refinance yur lan, it's imprtant t knw what t expect ng the way. Here, we've utlined sme f t~e gener steps in the hme financing prcess. Initi cnsultatin Apply fr a..r::. PrirityBuyer c... praapprv ' ca C/) E :::r: Prvide l requested dcuments (Purchase r Refinance) Find yur hme Speak with yur hme mrtgage cnsultant abut yur financi needs. gs, and current situatin t determine yur next steps, and fr infrmatin, as needed, n what yu may Quify t brrw. Inquiry stage: Yu prvide infrmatin n yur incme, assets, liabilities, and re estate wned. Cnsultatin stage: In additin t the infrmatin needed fr the inquiry stage abve, yu s prvide written cnsent(s) t pull yur credit reprt(s). Yur mrtgage cnsultant will wrk up yur numbers t help yu understand yur financing ptins. Reestate prfessins and the hme sellers they represent ften require cnfirmatin f yur credit-wrthiness and yur ability t purchase fr a given price (at cntract). Preapprv is critic and mre imprtant than prequificatin because it utilizes credit and preliminary underwriting apprv. When yu are ready t apply fr a pre-apprv, yu will need t prvide requested dcumentatin (see next step). A Wells Farg PrirityBuyer<r; preapprv letter will elevate yur hme buying status and strengthen yur ffer. Once yu have it, yu're ready t shp fr a hme with cnfidence. Refer t page five f this checklist fr a list f dcuments that yu may need t prvide. Yur hme mrtgage cnsultant r hme lan prcessr will advise yu f the specific dcuments required fr us t underwrite and apprve yur mrtgage. It's imprtant t submit the required dcumentatin as quickly as pssible t ensure a smth prcess and n-time clsing. All infrmatin must be accurate and cmplete at least ten business days prir t clsing. Wrk with a re estate agent fr vuable directin and market expertise. If yu dn't yet have ne, yur mrtgage cnsultant can give yu sever t cntact. Yur PrirityBuyer preapprv letter gives yu and yur agent/builder yur hme purchase price range. and enables them t shw yu the hmes that meet yur financi needs and persn expectatins. 1. A PrirityBuyerl!; preapprvis basedn ur preliminaryreviewf creditinfrmatinnlyandis nt a cmmitment1 lend.wewill beablet ffer a lan cmmitment upn verificatin f applicatin infrmatin, satisfying l underwriting requirements and cnditins, and prviding an acceptable prperly f apprais and title reprt. Nt available n nncnfrming prducts. < cntinued n next page> NMFl #371 Rev. 4/212 Page 1 f 5

2 "' ::J.~ c... CI) E :::I: Make an ffer Sign the purchase cntract Get a hme inspectin Yur PrirityBuyer preapprv letter helps yur agent negtiate with the seller n yur behf - it shws everyne that this is a "re de." Regardlessf wh draws up yur purchase cntract (a re estate attrney, title cmpany, etc.). they shuld be fully aware f imprtant negtiating pints r cntingencies t include in the cntract. Make sure yu have a cntingency in yur purchase cntract that lets yu renegtiate the cntract if a majr defect is discvered at inspectin. Yu may be required t advance a "gd faith depsit" r "earnest mney" when yu sign the cntract. This payment will be cnsidered part f yur dwn payment if yu are making ne. When determining the clsing date n yur tfer, please cnsult yur hme mrtgage cnsultant. We strngly suggest yu hire an engineer r hme inspectr t evuate the cnditin f the prperty. Ses cntracts are usuly written "as is," s it's imprtant t knw what yu are buying. CI) IJ) ọ... C. Finize the applicatin Lck r flat the rate When yu finize yur applicatin and mrtgage chice, carefully review the terms and cnditins, and be sure t ask yur mrtgage cnsultant abut anything yu d nt fully understand. Yu can elect t lck in yur range f rates at applicatin r lw it t "tlat" with the market. If yu chse t flat yur range f rates, yu may lck it in at current rates at any time up t 1 business days prir t yur clsing. The interest rate must be lcked 1 business days prir t clsing. Lcking in secures yur mrtgage chice and yur price range; bth are subject t change and may be necessary t maintain yur mrtgage apprv. "'.~. Cl _s, Apprais and title Receive and review the disclsure package search are rdered :2! Yu will s wrk with a mrtgage cnsultant t see yu thrugh t clsing. Yu will be sent a package f disclsures including a Gd Faith Estimate f Clsing Csts, Truth-in-Lending isclsure and ther infrmatin abut the financing yu have chsen within 3 business days f yur applicatin. It's imprtant fr yu t review these materis and cnfirm that the terms shwn match yur expectatins. Cntact yur mrtgage cnsultant with any questins. After yu have received initi disclsures, yu will be expected t pay certain fees, which vary by are Wells Farg will rder an apprais and fllw up with yur clsing agent (usuly yur attrney r a title agency representative, depending n what's custmary in yur aret ensure that a title cmmitment is rdered. If yu are refinancing, yu r smene else may have t be available t give the appraiser access t yur hme. Yu will receive a cpy f yur cmpleted apprais. 2. Available n l quified purchase transactins. Other terms and cnditins apply. See a hme mrtgage cnsultant fr details. NMFL #371 Page 2 f 5

3 "C (1) ::::::J c ''+:: c a I/) I/) Receive a welcme cl (1) Receive a a cmmitment letter and "C Meet l c c cntingencies C a ''+:: c c (1) c 2 Yu can expect t receive a welcme cl frm yur Wells Farg hme lan prcessr, wh, ng with yur hme mrtgage cnsultant, will be a primary cntact. He/she can help answer yur questins and is respnsible fr: Prviding yu with the status f yur mrtgage applicatin Ensuring yu have l necessary cntact infrmatin Requesting any utstanding dcumentatin r ther items t facilitate yur apprv Cnfirming and managing yur clsing date A cmmitment letter cntains the terms and cnditins under which Wells Farg will clse yur lan. Receipt f a cmmitment letter means yur mrtgage is apprved, subject t the cnditins in the letter, and that yu are mst ready t clse." Carefully review the cmmitment letter and act n utstanding items, because we cannt clse yur mrtgage until l apprv cnditins are satisfied. *' These items may include, but are nt limited t: Any fin mrtgage cnditins Cpy f a paid receipt fr hmewners insurance (prvided by a licensed insurance agent) Cpy f a paid receipt fr fld insurance, if required Evidence that required inspectins have been cnducted and passed Certificate f Occupancy fr a newly cnstructed hme r ne that has undergne certain types f renvatins 'Fr new cnstructin purchase lans, the initi lan cmmitment may expire prir t yur actu settlement date depending n the length f time it takes the builder t cmplete the hme. As the expiratin date appraches, yu will be asked t prvide additin dcumentatin t extend the date f the cmmitment as needed. This may ccur multiple times thrughut the building prcess. It is imprtant t discuss any ptenti changes in emplyment, incme, debts, credit prfile, etc. with yur hme mrtgage cnsultant prir t their ccurrence during the building prcess, as the changes culd affect the status f yur apprv/cmmitment. Receive a preclsing Truth-In-Lending isclsure A clsing date is set and Yur HU-1 and clsing package are c prepared I/) U Obtain yur certified r cashiers checks Attend yur clsing Nte: On ccasin, if yu cannt attend a pwer f attrney may be arranged in advance. Sme refinances can be dne by mail (restrictins apply). If applicable, yu may receive an updated Truth-In-Lending isclsure (TIL) befre clsing. After receiving the TIL there is a 3 business day waiting perid befre yur lan can clse. The TIL will have yur Annu Percentage Rate (APR) and the amunt f yur finance charges. If yu have questins abut this disclsure, cntact yur mrtgage cnsultant immediately. Any further changes t the APR and finance charges may require yu t be sent anther TIL and incur anther 6 business day waiting perid, which may impact yur clsing date. All invlved parties need t arrange a date, time and lcatin fr clsing. Yur clsing agent will be equipped with a cpy f the HU-' Settlement Statement, which shws l the clsing-related csts. Wells Farg Hme Mrtgage must prvide yu with certain disclsures befre yur lan can clse, which may impact yur clsing date. Yu will be ntified f the exact amunt f mney yu will be required t bring t clsing (payable nly by certified r cashier's check). Funds may nt be required if yu are refinancing. At clsing, yur clsing agent will review and explain l f yur mrtgage and clsing dcuments. Mst custmers establish an escrw accunt at clsing with funds that will cver future re estate taxes, hmewners insurance, and if applicable, yur private mrtgage insurance. If applicable, Wells Farg Hme Mrtgage will make these payments fr yu frm this accunt when they cme due. Nte: Prir t clsing, infrm yur hme lan prcessr r hme mrtgage cnsultant if yu wuld prefer t make tax and insurance payments n yur wn. But understand that many mrtgages require an escrw accunt, and that a fee may be charged if the escrw accunt is waived. NMFL #371 Page 3 f 5

4 (/J.~ >... (/J en III en +-'... ~ Select yur preferred payment methd Receive and cmplete yur service survey (Purchase r re/inance) Open yur mrtgage accunt nline At clsing, yu will receive instructins n the amunt and timing f yur first payment. Yu'll s receive a dcument explaining yur chices f autmatic payment ptins t help with budgeting and/r paying dwn princip faster. These payment ptins are free, and yu can chse t pay mnthly, weekly, semi-mnthly r biweekly. Chse yur preference fr autmatic payments at clsing r any time after. Yu may s make payments nline at yurwellsfargmrtgage.cm r by check. Cngratulatins! Nw that yu've clsed n yur mrtgage, we're happy t have yu as ur custmer and cntinue t meet yur hme financing needs as yur mrtgage mves int the servicing prcess. Within 1 days f yur mrtgage clsing, yu'll receive a Custmer Service Survey t rate yur experience during the mrtgage prcess with Wells Farg Hme Mrtgage. Yur feedback is vuable t us, and we'd appreciate it if yu wuld cmplete the survey and return it t us. In the weeks after yur clsing, simply g t yurwellsfargmrtgage.cm and fllw the instructins t view yur mrtgage accunt infrmatin nline. This site prvides free, secure access t yur mrtgage infrmatin. Cl yur mrtgage cnsultant r yur servicing team (Purchase r refinance) Feel free t cntact yur mrtgage cnsultant r yur custmer service team if yu: Have questins, cncerns, an issue, r if yu can't make a mrtgage payment{s) Want t refinance t change yur rate r term Want t brrw cash frm yur hme's equity Are mving r buying a vacatin hme r investment prperty - yur mrtgage cnsultant can help yu finance a hme anywhere in the United States Have a friend r family member wh needs hme financing - yur mrtgage cnsultant can s help them finance a hme anywhere in the United States Thank yu We hpe yu find this dcument useful as yu prgress thrugh the hme financing prcess. It is imprtant t nte, the steps utlined here are gener and may nt include l steps specific t yur hme financing situatin. Yur hme mrtgage cnsultant will advise yu f any differences that may apply t yur specific mrtgage and circumstances. Certain state requirements may s apply and impact the steps specific t yur mrtgage. Wells Farg Hme Mrtgage is dedicated t prviding yu with an utstanding experience Please d nt hesitate t make us aware f any questins, issues r cncerns yu may have s we can address them right away. Wells Farg Hme Mrtgage vues yur feedback Shrtly after clsing n yur hme mrtgage, yu will receive a survey regarding the level f service yu received thrughut yur hme financing experience. We wuld appreciate yu taking the time t cmplete and return it. Our g is t prvide utstanding levels f service that result in yu wanting t use us again in the future and recmmend us t friends and family. Signature: _ NMFL #371 Page 4 f 5

5 Mrtgage dcumentatin Yur hme mrtgage cnsultant will advise yu f the specific dcuments - which may include sme r l f the belw - required fr us t underwrite and apprve yur mrtgage based n yur specific circumstances and mrtgage chice. It is imprtant that l pages f the dcumentatin are included, even if a page is blank. Incme infrmatin Mst current pay stubs (l jbs/brrwers, shwing year-t-date infrmatinl 1 mnth (full 3 day peridl 2 mnths Feder tax returns (14s) 1 year 2 years W-2s 1 year 2 years Written explanatin if emplyed less than tw years r gap in last tw Self-emplyed dcumentatin Pensin award letter Sci Security award letter Business infrmatin (if applicable) Cmplete feder tax returns (bth persn and business) 1 year 2 years 3 years Year-I-date prfit and lss statement List f l business debts Evidence that business pays expenses 6 mnths f business bank statements Additin prperty wnership Latest mrtgage statement fr l prperties yu wn Prperty tax bill fr l prperties yu wn Cpy f hmewner's insurance binder r bill fr l prperties yu wn Verificatin fr applicable hmewner assciatin (HOA) dues fr any prperties yu wn Cpies f any current leases fr rented units that yu wn Credit infrmatin Asset statements Mst recent checking accunt statements 1 mnth 2 mnths Mst recent savings accunt statements 1 mnth 2 mnths Mst recent C accunt statements 1 mnth 2 mnths Credit infrmatin (cntinued) Mst recent investment accunt statements 1 mnth 2 mnths Mst recent quarterly retirement statement 1 quarter 2 quarters Terms and cnditins f withdraw fr l retirement accunts Judici decree fr any bligatins due t leg actin (ex: child supprt I Cmplete bankruptcy discharge papers. if applicable Letters f explanatin, if applicable Inquiries (18 days fr cnventin and 9 fr gvernment lans) Late payments Cllectins cuments fr any large depsits utside f payrll r gift funds Payments fr utilities, rent and car Verificatin that anther party pays student lan payments 6 mnths f relevant bank statements Verificatin that anther party pays aut lan payments 6 mnths f relevant bank statements Verificatin f gift funds surce Full 3-day transactin histry frm the gift fund bank accunt Verificatin f gift fund destinatin Full 3-day transactin histry frm the gift fund bank accunt where gift funds were delivered (needed after transactin is cmplete) Signed gift letter Other infrmatin Cpy f driver's license Cpy f Sci Security card Hmewners insurance infrmatin Cntact infrmatin, including name and phne number, fr: Emplyer Re estate agent Attrney Hmewner's insurance agent Accuntant Prperty management cmpany Relcatin crdinatr Landlrd _ _ _ _ Fr a cmplete explanatin f dcuments required in the mrtgage applicatin prcess, visit ur nline dcument Iibrarv at Infrmatin is accurate as f date f printing and is subject t change withut ntice. ~~ Wells Farg Hme Mrtgage is a divisin f Wells Farg Bank, N.A. J5344 Wells Farg Bank, N.A. All rights reserved. NMLSR I NMFL W371 Page 5 f 5