| The Loan Process |
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| Here’s a checklist
of items you’ll need to have to complete the mortgage
process. |
Call us for your no obligation mortgage
assesment
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(1888-992-2352)
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| Pre-Qualification |
| Before you apply for a mortgage, you
need to know your: |
- Current monthly income
- Current monthly expenditures
- Desired monthly mortgage payment
- Anticipated sale price or home value
- Anticipated down payment amount
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| This information makes it much easier
to figure out how much you can borrow and how much
house you can afford. We offer a free online pre-qualification
service that does this for you, and provides you
a letter estimating your eligible borrowing amount.
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| Obtaining a Loan |
| Whether you are seeking pre-approval
or have agreed on a purchase price for your new
home, you need to "prove" your eligibility for a
mortgage. Mortgage lenders typically consider the
following factors in determining your borrowing
eligibility: |
- Income
You typically need to prove both your
monthly income and income-earning history.
- Expenditures
Both your current and projected
monthly obligations are compared to your monthly
income. As a general rule, your monthly housing
expenses should not exceed 28% of your gross
(pre-tax) monthly income. Overall, your total
monthly expenses (e.g. housing, auto, student
loans, credit card, etc.) should not exceed
36% of your gross monthly income. It is important
to note that these are general guidelines and
can vary depending on the loan program you select.
- Credit History
A demonstrated track record
of handling financial obligations in a timely
manner is a characteristic lenders actively
seek. Lenders use your credit report to assess
and qualify this track record. By clearly understanding
your financial history, lenders can judge the
likelihood that you will also handle your mortgage
obligation responsibly.
- Down Payment Size
Although some loan programs
only require a small or no down payment, a larger
down payment can be considered favorable. Often,
the size of your down payment can be increased
through a gift from an immediate family member
or by borrowing against another asset (such
as a 401k plan).
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| The following income and employment
information is generally required as part of the
loan process: |
- For the employed:
- Current pay stub showing year-to-date income
- Current W-2 Form
- For the self-employed:
- Current, signed business and personal income tax returns covering a two-year period
- Current balance sheet Year-to-date profit and loss statement
- For retired homebuyers:
- Social Security Award Letter
- Either a 1099 Form or bank statement spanning a two-month time period (all pages)
- Copy of your pension check and all supporting documentation
- Bank account information—Bank account statements
spanning the most recent two-month time period
(all pages).
- Investment information—Including account numbers,
current values, and statements spanning two
months.
- Credit card information—Including credit card
company names, account numbers, monthly payment
amounts, and outstanding balances.
- Other loans (auto, student, etc.) information—Including
lending company names, account numbers, monthly
payment amounts, and number of remaining payments.
- Rental information (if applicable)—Landlord's
name, address, and telephone number.
- Other information:
- Name of settlement agent/attorney,firm's name and telephone number;
- Divorce decrees and separation/alimony agreements (if applicable);
- List of other real estate owned, including value, mortgage balance, monthly payment.
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| Secure Your Rate |
| When applying for a mortgage for your
home, you'll have to make a decision about the interest
rate option best suited for you. Make sure you clearly
understand the choices below so you can make an
informed decision. |
- Lock your interest rate—Know a good
rate when you see one? With this option, you
may lock your rate at the time of application
or any time up to five days prior to closing.
- Float your interest rate—You may also choose
not to lock your rate at the time of application.
You will then have the option to lock your rate
at any time during the process, but the rate
must be locked at least five days prior to closing.
Keep in mind that rates are subject to change
at any time, and you are not guaranteed a rate
until you contact your mortgage specialist and
execute the rate lock addendum.
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| Loan Approval |
| There are several steps involved in
approving your loan. At Wachovia Mortgage we will
take care of the following: |
- Ordering a home appraisal
- Ordering your credit report
- Requesting any missing information necessary
to complete your application
- Keep you continually updated
- Promptly contact you with your loan decision
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| The Closing |
| When all the I's are dotted and the
T’s are crossed, and the house is ready to change
hands, you can breathe easily and think about moving
into your new home. At this stage in the mortgage
process, the realtors and mortgage lenders work
together to close, or settle, the deal. |
| At the closing will be: |
- You
- Your settlement agent/attorney
- The home seller
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| In preparation for this meeting, you'll
need to provide the following information: |
- Your desired closing time and date
- Your settlement agent/attorney's name, address,
and telephone number
- A survey and/or termite inspection (if required
by your loan program)
- A certified or cashier's check as payment
for your closing costs
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| The other closing participants will
provide the following information: |
- Loan closing documentation-provided to the
settlement agent/attorney by the lender;
- Title search and notification of final closing
costs-provided to you by the settlement agent/attorney.
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| After Closing |
| Making arrangements to keep the financial
commitments you made in buying the house can be
a challenge. After closing, your loan servicer should
provide you with the following: |
- Monthly statements throughout the life of
your loan
- The option of setting up an automatic draft
payment plan after your first payment
- Property tax and insurance escrow account
management
- Annual escrow account balance information
- Customer support
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| If You Are Not Yet Ready To Buy |
| Here are a few hints that can help
you increase your future purchasing power: |
- Budget. Focus on saving money. One of the
easiest ways to accomplish this is by developing
and adhering to a strict budget.
- Repair your credit. Consistency is the key.
Make sure your bills are consistently paid on
time.
- Manage debt. Refrain from accumulating additional
debt while simultaneously paying off or down
existing debt.
- Look for interest rate reductions. Your purchasing
power increases as interest rates decrease.
Keep track of your desired rate or payment amount
by registering for our free Rate Alert service.
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| Apply Online Now |
Equal Housing Lender. © 2007 Abela Group Home Loans, L.L.C. Trade/service marks are the property of Abela Group Home Loans L.L.C., and/or its
subsidiaries. *Loan Approval is subject to satisfactory appraisal and title review and no change in financial condition. If the rate is
not locked or rate protection expires, any rate increase may lower the loan amount for which the borrower has pre-qualified. **Interest Rates
are subject to change without notice. Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly
payments and the total amount paid when comparing to your current situation.