Home Loan Workbook


Loan Application and Pre-Qualification The first step in the Mortgage Process is to complete a full loan application. Once your application is received, an experienced Mortgage Banker will help explain dierent financing options that are best suited for your goals. This beginning stages 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 pay stubs, 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 a 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 Mortgage Banker 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. Underwriting A Mortgage Underwriter’s job is to assess the risk of lending you, the applicant, money to purchase your home. They will consider factors such as credit history, employment history and income, and your ability to repay when determining if they will approve your loan or not. Inspection and Appraisal Your REALTOR® will recommend a capable home inspector to conduct a thorough inspection of the property. The inspector will check for any structural and/or material defects in the property and provide a written report about their findings. If the property contains items that need to be addressed, per the inspection report, the REALTOR® can submit a building resolution document that request the seller to correct the deficiencies or provide a credit for the repairs at closing. (USA Mortgage does not require a copy of the inspection as this is a voluntary inspection) USA Mortgage will order an appraisal on the property from one of our approved vendors. The appraisal report is required by underwriting as it provides a collateral assessment of the property, assuring the Lender that the property value is commensurate with the purchase price. Conditional Approval After the initial documentation has been collected and the appraisal report has been issued, the file is submitted to our Underwriting Team for review. Typically on the first review, the Underwriter will issue an “approval” but with some conditions. These “conditions” are items that the Underwriter needs additional clarity on. Once these conditions are met, the final approval will be issued. Final Approval The final approval is issued when all documentation has been signed o on by Underwriting. It is imperative that this final approval date is met prior to your loan commitment date on the sales contract. Since this milestone is time sensitive, staying motivated and providing all requested information will allow us to meet the designated date of loan commitment and prevent any delays or extensions. Closing The loan closing appointment typically occurs at a Title Company and represents the time when all Buyers sign the final loan, and title, documents. This will include the transfer of title and all recording instruments that show YOU as the new owner! Possession!


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