MORTGAGE PROCESS LOAN PROGRAMS
ABOUT US USA Mortgage is a full-service mortgage bank. We will see you through all aspects of the loan process from the time we meet to the day you sit at the closing table. We also will fund your loan with our money. To borrowers and REALTORS®, being a mortgage bank means you can expect a home financing experience free of hassles and headaches. The complete control means having inhouse operations such as processing, underwriting, closing, and funding. We want you to be our client for life...and we treat you accordingly. We strive to build lasting relationships that enable each and every person relying on us for their financing needs the opportunity to achieve the American dream. We know that the purchase of a home is a large investment - both financially and emotionally - and we know that borrowers have many options. Our clients choose us because we keep rates low and fees to a minimum; provide speedy pre-approvals; present a diverse array of loan solutions to fit individual needs; and ensure smooth, problem-free closings. We feel that our relationship should not end at the closing table, as is the case with most lenders; but it should continue over time through future follow-up calls, emails, and letters about topics including market updates and refinancing opportunities.
THE MORTGAGE LOAN PROCESS
The first step in the Mortgage Process is to complete a full loan application. Once your application is received, an experienced Mortgage Professional will help explain dierent financing options that are best suited for your goals. This beginning stage of the process does not guarantee an approval for a mortgage. However, it does provide the knowledge required to set realistic expectations in respect to spending limits. Documentation Financial documents supporting the mortgage application must be submitted and verified by underwriters. Documentation commonly requested (but not limited to) would include 30 days paystubs, 2 years complete tax returns, 2 years W2’s and 1099’s, photo ID’s for all applicants, current checking and savings account statements, and recent retirement/investment account statements. If you have experienced a divorce or bankruptcy, supporting documentation will be required. Home Shopping Now that the pre-approval is in place, you can begin the process of shopping for your dream home! You might consult with your REALTOR® about your needs and prepare a list of available inventory that suits your search criteria. When the perfect home is located, your realtor will present your oer to the seller. Begin the Loan Process When all parties have agreed to the terms of the sales contract, you will meet with your loan ocer to discuss the dierent financing options you may qualify for. When the type of mortgage, and
term, has been determined, you will sign the Loan Application and the Loan Estimate. This document is not 100% accurate in the early stages,
however, it does provide you with a realistic picture of your transaction.
THE HOME BUYING PROCESS
MEET WITH A REAL ESTATE PROFESSIONAL Discuss the type of home you’re looking for, including style, price, and location.
GET PRE-APPROVED You will need pay stubs, W2s, and bank statements. Knowing what you can aord is critical to a successful home shopping experience.
MAKE AN OFFER Your agent will prepare the oer based on the price and terms you choose.
SEARCH FOR HOMES The fun part! Your agent will schedule showings and help you find the perfect home.
NEGOTIATION & CONTRACT It may take a few tries to get it just right, but hang in there. You’re on your way!
UNDER CONTRACT You and seller have agreed to the price and terms. The home is eectively held for you until closing.
CLOSING This is the transfer of funds and ownership. A title company or an attorney typically acts as an independent third party to facilitate the closing.
Perform due diligence, order the appraisal, conduct an inspection, and review terms with the lender.
CONGRATULATIONS! YOU ARE A NEW HOME OWNER!
HOME LOAN PROCESS
PRE-QUALIFICATION & DOCUMENTATION The first step is to complete a full loan application, which can be done online or with the assistance of your loan ocer. Once your application is received your loan ocer will guide and help determine which loan program best fits your needs while informing you of the needed documentation to move forward with the process.
START SHOPPING FOR YOUR NEW HOME This is the fun part; you can work with a licensed real estate professional that will help find that house you can call home! Along the way, they will assist in making sure you are aware of any unseen or unnoticed issues to insure you are buying with confidence. Once you find the right place they will work on your behalf for the best terms and price of the sale. START SHOPPING FOR YOUR NEW HOME BEGIN THE LOAN PROCESS Once all parties have agreed to the terms of the sales contract, your loan ocer will begin collecting information to provide the best program options and terms available. A Loan Estimate will be provided to detail the loan specifics such as the interest rate, monthly payment and total closing costs. The Loan Estimate shows you what loan terms the lender expects to oer if you decide to move forward. If you decide to move forward, the loan ocer will ask for additional financial information for the processing of the loan.
UNDERWRITING A Mortgage Underwriter’s job is to assess the risk of lending you, the applicant, money to purchase your home. They consider factors such as credit history, employment history and income when determining whether to approve the loan.
INSPECTION & APPRAISAL Your REALTOR® can recommend a capable home inspector for a thorough inspection of the property. The inspector will check for any structural and/or material defect, items you will want to know about before your purchase. After the inspection is complete your loan ocer will place the order for your appraisal and a licensed appraiser will be randomly selected to complete the order.
CONDITIONAL APPROVAL Once the underwriter has reviewed all the documentation provided for the buyer and it meets the minimum requirements they will issue a “conditional approval.” However, this approval will still have a few items needed to get a final approval.
FINAL APPROVAL & CLOSING Once the additional items from the conditional approval have been obtained the underwriter signs o giving it a clear to close. The file will now move into closing. This is where we get the paperwork ready for you to sign and move the money to the title company to pay for the home.
• 5% minimum down payment requirement • Maximum loan amount of $510,400 • Seller concession are limited to 3-9% of sales price (please call for details) • PMI required over 80% LTV • Additional options are available
• 3.5% minimum down payment requirement • Max loan amount will be $314,827 • Upfront Mortgage Insurance premium financed into the loan • Condominiums must be on FHA approved list • No income limits • Seller concessions up to 6% of sales price • Gifts allowed •
• Minimum 640 credit score (may be lower but subject to USDA Approval) • Property must be located in USDA approved area • No down payment required - 100% - 102% LTV financing based on appraised value • Possible financed closing costs • Reduced monthly mortgage insurance premiums • New and existing homes eligible • Seller concessions of 6% of sales price
• Condominiums may be eligible for financing • Not restricted to first time home buyers
• USDA income limits are subject to change and need to be accounted for the dierent counties. Visit the USDA website at www.rd.usda.gov for more information.
• 0% down payment requirement • Must meet VA eligibility • No MI
• VA up front funding fee financed into loan • Disabled veterans can waive funding fee
LOCK & SHOP • Delivers flexibility to the homebuyers’ experience. • Locks up to 120 days with no upfront lock fees.
ADDITIONAL LOAN PROGRAMS
• Jumbo Loans • Renovation Loans • Construction Loans • Bank Statement Programs • Investment Property Programs
MORTGAGE DOs & DONTs DOs:
• KEEP ALL RECORDS AND DOCUMENTS IN GOOD ORDER
• AVAILABILITY - Keep your financial records close at hand in case updates are requested.
• INCOME - Be aware that underwriters typically verify your income and tax documents through your employer(s), CPA, and/or IRS tax transcripts. Hold onto new paystubs as received.
• ASSETS - Continue saving account statements. Keep all numbered pages of each statement. Ex. 8 of 8.
• GIFTS - If you’re receiving any gift money from relatives, they’ll need to sign a gift letter (we’ll provide) and an account statement evidencing the source, which must be “seasoned” funds. • CURRENT RESIDENCE - If you’re renting, continue paying your rent on time and save proof of payment. If you’re selling your current residence, be prepared to show your closing disclosure. If you’ll be renting your home, you may need to show sucient equity, a lease and receipt of the first month’s rent and security deposit. • KEEP YOUR CREDIT SHINING - Continue making payments on time. Your credit report may be refreshed, and any negative change to your report could cause you to lose your approval and your home. • UNDERSTAND THAT THINGS HAVE CHANGED - Underwriters require more documentation than in the past. Even if requests seem silly, intrusive or unnecessary, please remember that if they didn’t need it, they wouldn’t ask.
DONTs: • APPLY FOR NEW CREDIT - Changes in credit can cause delays, change the terms of your financing or even prevent closing. If you must open a new account (or even borrow against retirement funds), please consult with us first. • CHANGE JOBS DURING THE PROCESS - Probationary periods, career or even staus changes (such as from a salaried to a commisioned position, leave of absence or new bonus structure) can be subject to very strict rules. • MAKE UNDOCUMENTED DEPOSITS - Primarily large but sometimes even small deposits must be sourced unless they are identified. Make copies of checks and deposit slips. Make sure you keep all documents on any large deposit. • WAIT TO LIQUIDATE FUNDS FROM STOCK OR RETIREMENT ACCOUNT - If you need to sell investments, do it now and document the transaction. Don’t take the risk that the market could move against you leaving you short of funds to close.
Company NMLS: 227262. Not a commitment to lend. Additional terms and conditions apply. DAS Acquisition Company, LLC is not aliated with or endorsed by any government entity or agency, including USDA, HUD or VA. Headquarters: 12140 Woodcrest Executive Drive, Suite 150, St. Louis, Missouri 63141, Toll Free: (888) 250-6522. Fo licensing information http://www.nmlsconsumeraccess.org. DAS Acquisition, LLC dba USA Mortgage NMLS #227262. Not a commitment to lend. Additional terms and conditions apply. Licensed Lending Area: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NC, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WV and WI. AZ License Number: 942577. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, Regulated by the CO Division of Real Estate, Georgia Residential Mortgage Licensee #33479, MA #ML227262, OH #RM.850291.000, Licensed under the Oregon Consumer Finance Act, OR Licens #ML-5723, TX: 2150 S. Central Expressway, Suite 310, McKinney, TX 75070, WA #CL-227262. Headquarters: 12140 W odcrest Executive Drive, Suite 150, St. Louis, Missouri 63141, Toll Free: (888) 250-6522. For licensing information, go to: www.nmlsconsumeraccess.org.Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12
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