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Home Loans request - What do you need for any convetional Loans

Loans request - What do you need for any convetional Loans

Here is q quick reminder about all the document you must prepare for your loan application

For Salaried Borrowers
Copy of pay stubs to cover most recent 30 day pay period

Copy of W-2’s for most recent 1 year period

Copy of one of the following: driver’s license, alien registration card, passport or state issued identification card

For COMMISSIONED OR BONUS INCOME BORROWERS (only if applicable)
Copy of tax returns if bonus and /or commission income exceeds 25% of base salary

SELF-EMPLOYED BORROWERS (only if applicable)
Copy of previous 1 years signed personal tax returns (all schedules and K’1’s if applicable)
Copy of previous 1 years corporate/partnership tax returns (if owning 25% or more of company)
Year-to-date profit and loss statement and balance sheet

Needed for all Borrowers

Original completed residential loan application and enclosed signed disclosures

Document, on loan application, any additional source of income to be used in qualifying

Copy of previous 1 month bank statement on all asset accounts: checking, savings, CDs
(all pages– no screen prints)
Copy of fully executed sales contract

Certified copy of closing statement and sale of current residence (if applicable)

Copy of divorce decree (if applicable)

Copy of canceled earnest money check

Check for $365 payable to PrimeLending for appraisal and credit report

To Know What House Payment Can You Afford, complete the informations below

1) What's your Gross Monthly Income
Borrower $_____1500_____________
CoBorrower $_____2200_____________

Gross Monthly Income TOTAL $______3700____________

2) Minimum Monthly Debt
Car Lease or Loan(s) $______400_____________
Personal Installment Loan(s) $______200_____________
School Loan(s) $______________________
Payroll/401 Loan Payment(s) $______________________
Credit Card(s) $______350_____________
Other (Child Support, Alimony) $______________________

Minimum Monthly Debt TOTAL $______950____________

To Calculate Monthly House Payment:

A) 40% of Total gross monthly income (x) $____1480__________
B) Minus total minimum monthly debt (-) $____950___________
C) Equals amount for maximum monthly
house payment including taxes and insurance

TOTAL (=) $______530__________

This is an easy way to evaluate if you can borrow money.
In the case you reach a negative number, you better delay and start budgeting to reduce your debts.

If you have some money to borrow, here are the 5 major steps for a succesful Loan

STEP1: Loan Application By Buyer
The application is made by meeting face-to-face, telephone, e- mail or by web site.
We want to obtain information about your income, expenses and financial goals to customize a mortgage that fits your needs.
We will discuss rates and loan programs.

STEP2: Loan Set-Up
Order appraisal, credit report and title search.
Mail Truth-In-Lending disclosure to the client.
Mail verification to banks and employer (as needed).

STEP3: Loan Processing
The processor evaluates the income, expenses, assets and credit to ensure the information meets investor guidelines. After the file is approved by the underwriter, the processor prepares the papers to send to the closing department. The insurance agents must have the hazard insurance binder completed before closing.

STEP4: Underwriting
Evaluation of credit and property in determining adherence to lender guidelines.
Approved
Suspended
Rejected
Approved
Conditionally.
All conditions must be met prior to closing.

STEP5: Closing
The closing is scheduled by the buyer, builder and the title company.
PrimeLending prepares the Settlement Statement, which is reviewed by the processor and closer before the final figure is given to the borrower.
Must Bring to Closing:
1. Cashier’s check made out to the title company or funds can be wired.
2. Driver’s license.
3. The Settlement Statement from the recent sale of your previous home.

Credit Report

1. Upon loan application, we will run your credit report and review the credit with you. If
there are any errors, please contact the credit bureaus as soon as possible. The bureaus are
obligated, by Federal Law, to contact all creditors when mistakes are made. These firms
must respond in writing within 30 days. Failure to do so obligates the bureaus to remove the
disputed items from your credit record (Fair Credit Act of 1971).

2. Do not allow other lenders to run your credit. Each inquiry will reduce your FICO
score. Most lenders use a buyer’s FICO score to determine the terms of their
mortgage.

3. Developed in 1956, a Fair Issac score is a three digit number ranging from 300-950,
according to the following risk factors:

Payment History (35% of score)
Payment information on many types of accounts
Public record and collection items
Details on late or missed payments
—Specifically, how late they were, how much was owed, how recently they occurred and
how many there are

Amount Owed (30% of score)
Amount owed on all accounts
Amount owed on different types of accounts
Whether you are showing a balance on certain types of accounts
How much of the total credit line is being used
How much of installment loan accounts is still owed

Length of Credit History (15% of total score)
How long your credit accounts have been established, in general
How long specific credit accounts have been established
How long it has been since you used certain accounts

Types of Credit (10% of score)
What kinds of credit accounts you have
Total number of accounts you have

New Credit & Inquiries (10% of score)
How many new accounts you have
How long it has been since you opened a new account
How many recent requests for credit you have made

Before You Close Your Loan

Below are a few reminders of “do’s and don’ts” before you close on your
loan.

DO bring a cashier’s check made out to the title company for your closing costs. You can bring a personal check to closing for $1500 or less.

DO notify us if your salary or other compensation has changed from what has been noted on your loan application.

DO inform us if your address changes from what appears on your original loan application. We will complete rental and mortgage verification for all of your residences within the last two years.

DO obtain homeowner’s insurance with minimum coverage equal to the amount of your total loan or the replacement value of the house. Call our office (972-713-3808) with your builder’s name and phone number at least 10 days before closing.

DO keep documentation (or a “paper trail”) on any large deposits into your account. A “paper trail” is copies of all paperwork necessary to prove a financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.

DO notify us if you move funds from one account to another and provide a “paper trail” on any transactions.

DON’T acquire any additional debt or make any large purchases on existing credit without first consulting us. For example: Purchasing a car or buying appliances for your new home will change your debt to income ratios.

DON’T change jobs without consulting us. A change in compensation may affect your ability to qualify. Buyers must have a two -year history of bonuses and/or commissions to be counted as income. Lenders may verify employment on the day of closing as a quality control check.

DON’T co-sign with anyone to obtain a line of credit or make a purchase. The payment will show up on your credit report as an additional debt.

DON’T negotiate your contract with an allowance and expect to get money back at closing. An allowance can only be used to pay closing costs and/or prepaids and reduce sales price.

Article Source: Real EstateTips from top notch experts

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