ASSOCIATE
BROKERS - PRUDENTIAL CRANE
The following
information is deemed to be accurate at the time of
input; however, lender and government guidelines do
change from time to time. Always check for changes or
additional requirements with your lender. Do not rely on
this information as your sole source. It is intended to
give you general information.
Understanding the Process
Applying for a loan can be one of the most
stressful things about buying a new home. Armed with
information however, your stress levels will be
considerably lower and the process will go much more
smoothly.
After signing an agreement to purchase the
following things will happen:
Step I: The lender will take your
application for the loan (this will take anywhere from
1.5 to 2 hours). The lender will be looking at:
A. Buyer Qualifications
1) Ability to pay:
Income and Debt Ratios
2) Employment longevity and stability
3) Credit worthiness
4) Availability of Funds to Close
B. Property Qualifications
1) Value
2) Condition
Step II:
Verification of the Information (1 day - 3 weeks)
A. Buyer Qualifications
1) Income
Verifications
2) Employment Verifications
3) Deposit Verifications
4) Credit Report
B. Property Qualifications
1) Appraisal
2) Title Report
Step III:
Buyer and Property Submission for Approval (Underwriting
1 - 7 days)
Step IV: Buyer and Property Approval or
Rejection
A. Without conditions
B. With conditions
C. Work requirements for the property
Step V:
Closing the Sale
A. Closing at the Lender
B. Closing at the Attorney's office
ITEMS NEEDED FOR LOAN APPLICATION
1. Fully ratified sales contract and addenda.
2. Most recent original pay stubs, covering a 30 day
period.
3. Original W-2s for past two years.
4. For self-employed and commissioned only. Two most
recent years complete, ratified federal individual and
corporate tax returns. Year-to-date profit and loss dated
within 90 days.
5. One year lease on all investment properties. May need
tax returns as well.
6. Proof of any additional income needed to qualify.
7. Gift letter and proof of donor's ability to give.
8. Original bank statements (all pages) covering most
recent three month period.
9. Child care statement (VA loans), divorce decree,
separation agreement.
10. List of all debts owed, account numbers, balances and
monthly payments. Copy of payment books or statements for
these loans.
11. Name, address and phone number of current landlord
(if renting). Copy of listing, lease and/or sales
contract for present home (if own).
12. Copy of car title if auto is owned free and clear and
less than five years old.
13. Social security card and picture ID (FHA Loans).
14. DD-214 and Certificate of Eligibility (VA Loans).
15. Check for application fee.
YOUR LENDER MAY REQUIRE SOME OR ALL OF THE ABOVE OR OTHER
ITEMS IN ADDITION TO THE ABOVE.
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