Understanding the Home Mortgage Loan Process

After spending many weekends visiting open houses and looking online for just the right place, you’ve found a new home to buy. You’ve done the negotiating dance and have finally signed the sales contract, which is contingent on approval of a mortgage loan for you, the buyer.

Now it’s time for your Eaton Federal Savings Bank mortgage loan expert to get to work to make the new home yours. To help you understand what to expect during the loan application process, we’ve outlined the most common steps on the path to closing.

Getting Started

First, you’ll want to have a talk with one of our mortgage loan experts to select the type of mortgage loan that is best for your financial situation. If you need more information on the various types of loan programs, be sure to read the Mortgage Financing article in our Learning Centre.

Locate or gather the following pieces of information to make completing the loan application faster.

Home and work telephone numbers of the seller and agent

Copy of sales contract for the property

If a condo complex: Information on the development; i.e. number of units, number of units owner-occupied, etc.

If new construction: Cost of land, acquisition date, market value, and cost of construction

Names, addresses, telephone numbers of your current and previous employer(s)

Account numbers and balances of your checking, savings and investment accounts and the institutions' addresses and telephone numbers

All pages of the last 60 days of all bank and/or credit union statements (actual statements work best because they have the financial institution name, customer name, account number, and transaction history)

List of all credit cards, instalment loans, and other debt along with balances, required monthly payments and the name of the creditor

Pay stubs for the last 30 days including year to date totals

List of stocks, bonds, CDs, retirement funds, autos and their current values

All pages of your most recent investment account(s) statement.

Proof of other income sources (alimony, rentals, freelance income)

Value of your life insurance policy (is) both cash value and face amount

Divorce decree, alimony records

Tax returns for previous two or three years and any other proof of employment or income; be sure to include all schedules, W-2 forms and 1099 forms

Proof of real estate currently owned: address, market value, rentals, liens, taxes, etc.

The Application Process

Once you know the type of mortgage loan and have gathered the needed information, then you’re ready to complete the mortgage application. This can take a while to complete so you’ll want to block off sufficient, uninstructed time. You can apply for your home loan online for added convenience or make an appointment with one of our loan officers to complete the application together.

Your loan officer will provide a quick assessment of your financial information and credit report to make sure moving forward is prudent. Once the information is complete, we’ll submit the application for processing.

Now your loan application is in the hands of Eaton Federal and its team of mortgage professionals. To learn more about the final steps from application to closing, stay tuned for our upcoming Part 2 of this article, Understanding the Home Mortgage Loan Process.

[Source: http://www.eatonfed.com/blog/understanding-the-home-mortgage-loan-process-part-1]