Mortgage Process and Expectations

Transcription

1 Mortgage Process and Expectations Corporate Investors Mortgage Group, Inc. (CIMG) believes it will be helpful for you to understand the typical process for loan approval. Here are the basic steps of the mortgage process and the most common questions we encounter: 1. Loan Application/Disclosures: We begin the process by collecting the signed loan application, signed loan disclosures and your financial documents such as pay stubs, W-2 s, bank statements, tax returns, etc. FYI, we need ALL pages of your bank/asset statements even if there is no information on the last page! We may ask for more documentation than is needed upfront so that we aren t chasing down your documents later in the process. 2. Appraisal Ordered: An appraisal will need to be performed on the home. It will be ordered from a pool of local appraisers which we have approved and usually costs $410. This can be paid via a check made out to CIMG or online at in the appraisal payment center. The appraisal cannot be paid for until you have received the Loan Estimate which details the expected costs for your mortgage. Once we receive payment, it usually takes a week or two for the appraisal to be completed. You will receive a copy of your appraisal prior to closing. Other inspections such as a home inspection or survey are not required for your mortgage. You are free to obtain them but they will be handled independently from the mortgage. Termite reports are only required on VA loans (veteran loans). 3. Loan Processing: Once your loan application and disclosures have been received, your loan processor will review your file and submit it to underwriting. Your loan processor will likely request additional follow-up documentation from you such as an explanation letter, additional bank statement, your homeowner s insurance contact, etc. It is important to return the requested items to the processor in a timely manner to keep your loan moving forward. a. Please make sure that you initiate your homeowner s insurance policy during this stage of the process and do not wait until the very end as this could delay your closing. If you need a recommendation of an insurance agent, we are glad to provide one. Please forward the contact information for your hazard agent to your loan officer or loan processor. b. Also, be mindful of the movement of any funds in your asset accounts (checking/saving/investment) as we will ask you to source any large deposits that are not payroll deposits. Cash deposits are not acceptable for mortgage qualification and cannot be used for the purchase of your home. Also, if you are liquidating funds for closing from accounts such as an IRA, 401K, stocks etc., then proof of liquidation of these accounts may be required. Lastly, gift funds have specific requirements and must be documented in a specific way so please ask your loan officer or processor if you will receive a gift for your new purchase.

2 4. Loan Underwriting: The underwriter will analyze your assets, income, credit and appraisal and compare them to established lending guidelines in order to make a credit decision. This usually takes about 5 business days depending on volume and market conditions. Assuming the documentation meets the loan program guidelines, an initial loan approval will be issued. You will then be contacted by your loan processor for any additional information that is needed for final approval. Once all the conditions of the initial approval are reviewed and approved by underwriting, there will be a credit refresh within one week of closing and the final approval will be issued. The credit refresh is an updated check of your credit to make sure no new accounts/debts were opened or existing accounts increased since application. If there are additional debts, then they must be added to your loan file and analyzed by the underwriter. Please DO NOT OPEN ANY NEW ACCOUNTS once you have made application without discussing this with your loan officer or processor. Once your final loan approval is issued, the file is turned over to our closing department. 5. Closing: We must do a final verbal verification of employment for all borrowers within 48 hours of closing. In some circumstances, this could require your assistance if we are unable to reach someone at your company. We will contact you directly if we have difficulty obtaining this verification. Our Closing Department will prepare the closing documents and will send them to your closing attorney. We then prepare the Closing Disclosure which shows you the final amount needed for closing. This form must be received and acknowledged by you at least three days prior to closing. In most cases you will need certified funds for closing such as a certified check made payable to the closing attorney s trust account or a wire sent directly to your attorney s trust account. If you need to arrange for your certified funds before the cash to close amount is finalized, you can obtain your funds based on an estimated amount from your loan officer and then settle up any differences with the closing attorney using a personal check. All borrowers and anyone else who has an ownership interest in the property (if applicable) should plan to attend closing. If that is not possible, please let us know and we can confirm whether you are eligible for a power of attorney. If you are married, your spouse will need to attend closing regardless of whether they are on the loan or on title. Once you sign all of the paperwork at closing and the funds exchange hands, then you can enjoy your new home! Congratulations! 6. Post Closing: After closing, you should be done with the loan process other than making your mortgage payments. It is possible that we could request an additional item or two as we transfer the servicing of your loan. In addition, a certain percentage of loans are randomly selected for a quality control audit and this could also result in additional documentation being needed to finalize the loan and verify its compliance with all lending guidelines in place at this time. 7. First Payment: Sometimes your first payment will go to CIMG and sometimes it will go to the new servicer. If you receive notification from the servicer before your first payment is due, then you can go ahead and send your payment to that address. If you are ready to send in your first payment and have not received any payment instructions from the servicer, then please give us a call and we can confirm where to send the payment. 8. Feedback: We value your feedback and have created a dedicated address just for your comments, feedback@cimginc.com. We love to hear any and all feedback. If you had any problems at all, we want to know about those problems so we can address them immediately and improve our customer service moving forward. CIMG thanks you for the opportunity to help you with such an important transaction. We hope that the entire process is as streamlined and simple as possible and we look forward to being your home financing partner for life.

3 INSTRUCTIONS for DOCUMENTATION CHECKLIST 1. Collect the items listed on the checklist and then send to Dan either by: a) Scan and to: or b) Fax to: (this is a private and secure e-fax) or c) Bring to your initial meeting with Dan 2. If you are purchasing a home, please provide a copy of the contract. If you do not have the contract yet, please provide the address for the property along with list the price. 3. If you do not have a new home picked out yet, but you want to look in a specific price range or payment range, please indicate that on your or fax. If you have a target property, please provide the address. 4. Please do not hesitate to call Dan Woodard with any questions about your mortgage loan or the attachments. Dan Woodard Helping you every step of the way. Allison Edwards Loan Consultant Loan Specialist NMLS# NMLS# dwoodard@cimginc.com aedwards@cimginc.com

4 Here is a list of helpful tips to ensure an effortless loan process. These DOs and DON Ts will help you avoid any delays or disappointments with your loan approval. DON T DO ANY OF THE DON TS WITHOUT TALKING TO DAN FIRST. SOME OF THE DON T S ARE OKAY BUT ALWAYS ASK. DO continue making all monthly payments on time. DO provide all requested documents at your earliest convenience DO answer all questions as honestly as possible. DO document the source of any deposits into any of your accounts. DO call us before you make any changes to your employment, income, debt load, assets or deposit/transfer any money into any of your accounts. DON T make any purchases big or small DON T apply for new credit (even if you seem pre-approved) DON T open a new credit card DON T transfer any balances from one account to another DON T pay off any derogatory credit or collections DON T change jobs OR change the way you are paid by your company DON T buy any furniture DON T close any credit card accounts DON T allow any charge offs or collections from your current creditors DON T change bank accounts DON T consolidate your debt onto 1 or 2 credit cards DON T take out a new loan DON T accept gift funds DON T write your earnest money or due diligence checks from an account other than one with the borrowers name on it. This includes spouses if that person is not going to be on the loan. DON T pay off any loans or credit cards DON T deposit cash into any of your accounts...ever If you encounter a special situation, it is best to mention it to your lender right away so they can help you determine the best way to avoid any unnecessary conflicts.

5 DOCUMENTATION CHECKLIST Appraisal Fee $ (payable to: Corporate Investors Mortgage ) this is due when appraisal is ordered. Employment and Income documentation Paycheck stubs for each borrower covering the most recent 30 day period W-2 Forms for the past 2 years Last 2 years federal tax returns (Form 1040) with all schedules included and complete set of business (if applicable) Asset documentation Two most recent monthly bank statements for checking and savings (include ALL pages for each statement), even if some pages are blank Two most recent monthly statements for Source of Funds used for closing Any liquid asset should be documented with 2 monthly statements from the financial institution, or the most recent quarterly statement. All pages of each statement required If you can only access your accounts online, please print the full monthly statement and not just an online summary statement. Two months bank statements showing earnest money check and due diligence check clearing your account. Divorce Decree and/or Separation Agreement, if applicable. If selling another home, please provide a copy of the contract on that house. If the home is already sold and closed within the last 3 months, please provide a copy of the settlement statement (HUD-1). There may be additional information required, depending upon your individual situation. After interviewing with your loan officer, a better determination can be made as to whether any further documentation is needed. I/We hereby authorize Corporate Investors Mortgage Group, Inc. and its loan representative to check my/our credit for purposes of determining credit worthiness in connection with my/our mortgage application and request for a loan, and to contact me/us about this loan request. Borrower Date Co-Borrower Date

6 Helping you every step of the way. Dan Woodard Allison Edwards Loan Consultant Loan Specialist NMLS# NMLS# APPLICATION INSTRUCTIONS 1. Complete the attached Mortgage Loan Application Worksheet either by: A) Filling out on your computer and then to: or B) Print and fax the completed pages to to Dan Woodard Be sure to sign and fax this authorization form at the bottom, or include a comment in your that you give me your authorization to check your credit 2. If you are purchasing a home and you already have a Purchase Contract on a house, please include a note in your or fax with the address and purchase price of the new home, or include a copy of the contract if you are faxing the documents. If you do not have a new home picked out yet, but you want to look in a specific price range or payment range, please indicate that on your or fax, as well. 3. Do not hesitate to call Dan Woodard with any questions I/We hereby authorize Corporate Investors Mortgage Group, Inc. (CIMG) and its representatives to check my/our credit in connection with a mortgage application. I/We further authorize CIMG and its representative to contact me/us regarding this application. Borrower Signature Soc. Security Number Date Co-Borrower Signature Soc. Security Number Date

7 MORTGAGE LOAN APPLICATION WORKSHEET To Be Completed in Detail BORROWER INFORMATION BORROWER CO-BORROWER SOC SEC NO SOC SEC NO BIRTH DATE BIRTH DATE MARRIED UNMARRIED SEPARATED MARRIED UNMARRIED SEPARATED DEPENDENTS AGES DEPENDENTS AGES CURRENT HOME PHONE (INC AREA CODE) ( ) - YEARS OF SCHOOL CURRENT HOME PHONE (INC AREA CODE) ( ) - YEARS OF SCHOOL RESIDENCY HISTORY DATES: (MO/YR) (Indicate Same as Borrower if applicable) DATES: (MO/YR) CURRENT HOME ADDRESS FROM: TO: CURRENT HOME ADDRESS FROM: TO: RENT OWN ** RENT/MORTGATE PAYMENT /MO ** If you own your home, will you sell or keep this home prior to closing on your new home RENT OWN ** RENT/MORTGATE PAYMENT /MO ** If you own your home, will you sell or keep this home prior to closing on your new home IF RESIDING LESS THAN 2 YEARS AT ABOVE ADDRESS, COMPLETE THE FOLLOWING DATES: (MO/YR) DATES: (MO/YR) PREVIIOUS ADDRESS FROM: TO: PREVIIOUS ADDRESS FROM: TO: RENT OWN ** RENT OWN **

8 EMPLOYMENT HISTORY CURRENT EMPLOYMENT BORROWER S EMPLOYER SELF-EMPLOYED YES NO CURRENT EMPLOYMENT Co-BORROWER S EMPLOYER SELF-EMPLOYED YES NO PHONE (INC AREA CODE) ( ) - _ POSITION PHONE (INC AREA CODE) ( ) - _ POSITION DATES EMPLOYED (MO/YR) FROM TO DATES EMPLOYED (MO/YR) FROM TO ANNUAL GROSS SALARY $ MONTHLY WEEKLY COMMISSION/BONUS $ ANNUAL GROSS SALARY $ MONTHLY WEEKLY COMMISSION/BONUS $ OTHER INCOME $ OTHER INCOME $ HAVE YOU CLAIMED 2106 ON REIMBURSED BUSINESS EXPENSES ON LAST TWO YEARS TAX RETURNS FOR THIS JOB YES NO HAVE YOU CLAIMED 2106 ON REIMBURSED BUSINESS EXPENSES ON LAST TWO YEARS TAX RETURNS FOR THIS JOB YES NO IF EMPLOYED IN CURRENT JOB FOR LESS THAN 2 YEARS, COMPLETE THE FOLLOWING PREVIOUS EMPLOYMENT BORROWER S EMPLOYER SELF-EMPLOYED YES NO PREVIOUS EMPLOYMENT BORROWER S EMPLOYER SELF-EMPLOYED YES NO PHONE (INC AREA CODE) ( ) - _ POSITION PHONE (INC AREA CODE) ( ) - _ POSITION DATES EMPLOYED (MO/YR) FROM TO DATES EMPLOYED (MO/YR) FROM TO ANNUAL GROSS SALARY $ MONTHLY WEEKLY COMMISSION/BONUS $ ANNUAL GROSS SALARY $ MONTHLY WEEKLY COMMISSION/BONUS $ OTHER INCOME $ OTHER INCOME $ HAVE YOU CLAIMED 2106 ON REIMBURSED BUSINESS EXPENSES ON LAST TWO YEARS TAX RETURNS FOR THIS JOB YES NO HAVE YOU CLAIMED 2106 ON REIMBURSED BUSINESS EXPENSES ON LAST TWO YEARS TAX RETURNS FOR THIS JOB YES NO

9 ASSETS BORROWER Co-BORROWER SOURCE OF EARNEST MONEY SOURCE OF EARNEST MONEY SOURCE OF DUE DILIGENCE MONEY SOURCE OF DUE DILIGENCE MONEY SOURCE OF DOWN PAYMENT FUNDS TO CLOSE SOURCE OF DOWN PAYMENT FUNDS TO CLOSE GENERAL QUESTIONS If you answer yes to any questions A through G, please use continuation sheet for explanation. BORROWER Co-BORROWER YES NO YES NO A. ARE THERE ANY OUTSTANDING JUDGEMENTS AGAINST YOU? B. HAVE YOU BEEN DECLARED BANKRUPT IN THE LAST 7 YEARS? C. HAVE YOU HAD PROPERTY FORECLOSED UPON OR GIVEN TITLE OR DEED IN LIEU THEREOF IN THE LAST 7 YEARS? D. ARE YOU PARTY TO A LAWSUIT? E. ARE YOU PRESENTLY DELINQUENT OR IN DEFAULT ON ANY FEDERAL DEBT OR ANY OTHER LOAN OR FINANCIAL OBLIGATION? F. ARE YOU OBLIGATED TO PAY ALIMONY, CHILD SUPPORT, OR SEPARATE MAINTENANCE? Monthly Amount $ G. IS ANY PART OF THE DOWN PAYMENT BORROWED or GIFTED? H. ARE YOU a U.S. CITIZEN? I. ARE YOU A PERMANENT RESIDENT ALIEN? J. HAVE YOU HAD AN OWNERSHIP INTEREST IN A PROPERTY IN THE LAST THREE YEARS? RACE/NATIONAL ORIGIN: BORROWER American Indian, Alaskan Native Asian, Pacific Islander Black Hispanic White Other SEX: Female Male RACE/NATIONAL ORIGIN: Co-BORROWER American Indian, Alaskan Native Asian, Pacific Islander Black Hispanic White Other SEX: Female Male I/We certify that the information provided herein on this application is true to the best of my/our knowledge. I/We hereby authorize Corporate Investors Mortgage Group, Inc. to contact me/us regarding this application. Signed: Date: Signed: Date: