When obtaining a mortgage to buy a home there are many steps before making it to the closing table. After you are preapproved for a mortgage and have secured a contract on a new home (with the help of top agent, Suzy, of course), you will begin the process of acquiring FULL LOAN APPROVAL. Suzy has over 12 years’ experience in mortgage lending that will help guide you through this process, while at the same time working with proven professionals that will ensure we close successfully and on time.
After execution of your sales contract to buy your home, you will provide requested documentation ASAP to your lender to get your mortgage loan processed and to an underwriter for a decision. These documents include:
- Fully Executed Sales Contract with addenda
- Last 2 paystubs, Last 2 months Bank Statements (all pages, even the ones with nothing on them but a reconciliation chart), Last 2 years’ tax returns including all schedules
- Copy of Binder Check (and later proof it was withdrawn from your account)
- Other Items as indicated by your lender
Do Not Apply For Credit: No Rooms To Go, No Car, No PotteryBarn – Your credit will be pulled again before or at closing
After receiving these documents – the lender will send you a large stack of mortgage disclosures you will need to sign, date and return. For your convenience, sometimes these documents will be emailed to you and you will be asked to print and return them (be prepared as there can be 50 pages or more and you may need to buy some cartridge ink!). If you have a flexible schedule, sit down with your lender and have them review with you in person.
Once the paperwork is received, your file will be sent to an underwriter for review. This process can take 2-5 days depending on lender and their workload. The underwriter will give one of four scenarios: approved, approved with conditions, suspended (more documentation required before a decision can be rendered), or denied. Most responses will be “approved with conditions” if you are working with a quality mortgage lender as they efficiently preapproved you initially before you started house hunting. Fulfilling the conditions given by the lender is the first of two important tasks that you must complete in order to turn your “approval with conditions” into a full approval. The second task is to lock in your interest rate and loan terms.
Your contract may contain a contingency to obtain loan approval and it is imperative to work quickly and provide all items on this condition list back to your lender. If you do not obtain loan approval by this date in your contract, you could forfeit your binder. Suzy works diligently with her buyers to oversee this process.
When your mortgage loan is approved your lender will provide a LIST of items to satisfy the underwriter to give us the (…sound the angle trumpets) FULL LOAN APPROVAL and “Clear to Close.” These items can include:
- Verification of Employment (Do not change jobs or reduce hours you work.)
- Verification of large deposits in your bank account. This is big to the banks and is frustrating to us. Large deposits must be sourced to ensure the lender you are not getting an undisclosed loan from someone. Yes, I have even witnessed a $200 deposit into an account get questioned. Where did it come from?
- Explanations for gaps in employment, changes in income
- Gift Letter and Proof of Funds
- ALL credit inquiries on your account will need an explanation – basically, verifying if you opened a new credit account and to see if you have more debts than what they found on your credit report. Also explain or correct inconsistencies on credit report.
- Self employed borrowers may need current P&L statements prepared by CPA.
- Homeowners Insurance Company Contact Information
- Satisfactory Appraisal – ordered by the lender
Once all items on the conditional approval list are received by your lender, they will then resubmit to the underwriter. If all conditions are met, they will issue the FULL LOAN APPROVAL and “Clear to Close.” Then your file will be sent to their closing department to create the closing documents.
If you have more questions on World Golf Village mortgages or the home buying process in St. Johns County, Contact Suzy Evans today!