Coldwell Banker Residential Brokerage Home Buyers Guidebook - 2017 - Page 15

THE FINANCING PROCESS Financing Your New Home How to Apply for a Mortgage 1. First complete the loan application. An application fee may be required by the lender. 2. The lender begins processing the application. 3. The lending institution requests an appraisal of the home, a credit report and verification of employment and assets such as bank accounts. 4. The lender will provide a booklet containing specific loan information and a good faith estimate of closing and related costs. 5. An estimate of your loan costs in the form of an initial Truth in Lending Disclosure Statement (Reg Z) is issued. 6. The lender evaluates the application, along with supporting documentation, and approves the loan. 7. Once you sign the closing documents, the loan is funded. 8. The lender disburses the funds to the settlement or closing agent. The seller is paid and the title to the home is yours. 9. The appropriate documents are recorded at the county recorder’s office. Documents Needed to Apply for a Mortgage When you apply for a mortgage, you will need to furnish information regarding your income, expenses and obligations. It will save time if you have the following items available: • Two most recent pay stubs • W-2s for the last two years Repairing Past Credit Problems Have you had situations in the past that have put blemishes on your credit? Some lenders will work with you to find a credit solution. They have special programs and financing options that allow you to get a mortgage even with minor credit blemishes. However, it is in your best interest to keep your credit report in good standing. Here are some helpful hints for your credit report: • Never go over 90 days past due on any accounts • Keep your credit card debt below 50% of your monthly obligations • If paying bills after the due date, always pay within the grace period • Federal tax returns for the last two years • Last two months bank statements • Long-term debt information (credit cards, child support, auto loans, installment debt, etc.) ©2017 Coldwell Banker Residential Real Estate LLC. All Rights Reserved. Coldwell Banker Residential Brokerage fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor sales associates and are not employees of Coldwell Banker Residential Brokerage. 15