Home Loans

We’ll Find You A Loan That Feels Like Home

The mortgage professionals at Nationwide Equities are here to help find the right loan for your home. Our dedicated team will work to analyze each borrowers situation and recommend the right mortgage program. To help prepare you, we provide the tools to learn the mortgage process, explain products, and even calculate monthly payments.

We’re here every step of the way

Our dedicated professionals are here to answer any and all questions about the loan process. Contact us today!

The Process

Once a lender has gathered information about a borrower’s income and debts, a determination can be made as to how much the borrower can pay for a house. Since different home loan programs can cause different valuations, a borrower should get pre-qualified for each loan type that they may qualify for. 

In attempting to approve homebuyers for the type and amount of mortgage they want, mortgage companies look at two key factors:

1.   The borrower’s ability to repay the loan

2.   The borrower’s willingness to repay the loan.

Ability to repay the mortgage is verified by the borrower’s current employment and total income. The borrower’s willingness to repay is determined by examining how the property will be used. 

For example, will the homebuyer be living there or renting it out? Willingness is also closely related to how you have fulfilled previous financial commitments, thus the emphasis on the Credit Report and/or your rental payment history. 

It is important to remember that there are no rules carved in stone. Each applicant is handled on a case-by-case basis. So even if you come up a little short in one area, your stronger point could make up for the weak one. It is important to talk to a loan officer no matter what your situation may be.

The application is the true start of the loan process and usually occurs between days one and five of the loan process. With the aid of a mortgage professional, the borrower completes the application and provides all required documentation. The various fees and closing cost estimates will have been discussed while examining the many Mortgage Programs and these costs will be verified by the Good Faith Estimate (GFE) and a Truth-In-Lending Statement (TIL) which the borrower will receive within three days of the submission of the application to the lender.
Once the application has been submitted, the processing of the mortgage begins!

1.   The Processor orders the Credit Report, Appraisal and Title Report.

2.   The information on the application, such as bank deposits and payment histories, are then verified.
(Any credit deficiencies, such as late payments, collections and/or judgments require a written explanation.)

 
3.   The processor examines the Appraisal and Title Report, checking for property issues that may require further investigation.

4.   The entire mortgage package is then put together for submission to the lender.

If you are purchasing your home you will most likely need the following information:

      • W-2 forms for the past two years

      • Pay stubs from the past 30 days

      • If you wish to speed up the approval process, you should also provide the past three-months bank, stock and mutual fund account statements

      • Provide the most recent copies of any stock brokerage or IRA/401k accounts that you might have

      • If you are self-employed, you will need to provide the past two-years tax returns

      • If you own rental property, you will need to provide Rental Agreements and the past two-years tax returns

      • If you are not a US citizen, provide a copy of your green card (front and back), or if you are NOT a permanent resident provide your H-1 or L-1 visa

      • If you are applying for a Home Equity Loan you will need to, in addition, provide a copy of your first mortgage note and deed of trust. These items will normally be found in your mortgage closing documents
Most people applying for a home mortgage need not worry about the effects of their credit history during the mortgage process. However, you can be better prepared if you get a copy of your Credit Report before you apply for your mortgage. That way, you can take steps to correct any negatives before making your application. 

A Credit Profile refers to a consumer credit file, which is made up of various consumer credit reporting agencies. It is a picture of how you’ve paid back the companies you’ve have borrowed money from, or how you have met other financial obligations.

There are five categories of information on a credit profile: 

1. Identifying Information
2. Employment Information
3. Credit Information
4. Public Record Information
5. Inquiries

*NOT included on your credit profile are race, religion, health, driving record, criminal record, political preference, or income.

If you have had credit problems, be prepared to discuss them honestly with a mortgage professional who will assist you in writing your “Letter of Explanation.” Knowledgeable mortgage professionals know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. 

A borrower with a score of 680 and above is considered an “A borrower”. A loan with this score will be put through an “automated basic computerized underwriting” system and be completed within minutes. Borrowers in this category qualify for the lowest interest rates and their loan can close in a couple of days.

A score below 680 but above 620 may indicate underwriters will take a closer look in determining potential risk. Supplemental documentation may be required before final approval. Borrowers with this credit score may still obtain “A” pricing, but the loan may take several days longer to close. 

All things being equal, when you have derogatory credit, all of the other aspects of the loan need to be in order. Equity, stability, income, documentation, assets, etc. play a larger role in the approval decision. Various combinations are allowed when determining your grade, but the worst-case scenario will push your grade to a lower credit grade. Late mortgage payments and Bankruptcies/Foreclosures are the most important. Credit patterns, such as a high number of recent inquiries or more than a few outstanding loans, may signal a problem. Since an indication of a “willingness to pay” is important, several late payments in the same time period is better than random late ones.

An appraisal of real estate is an evaluation as to how much your property is worth. The appraiser does not create value, he/she interprets the market to arrive at a value estimate. As the appraiser compiles data pertinent to a report, consideration must be given to the site and amenities as well as the physical condition of the property.

Using three common approaches, which are all derived from the market, derives the opinion, or estimate of value.

The first approach to value is the COST APPROACH. This method derives what it would cost to replace the existing improvements as of the date of the appraisal, less any physical deterioration, functional obsolescence and economic obsolescence. 

The second method is the COMPARISON APPROACH, which uses other “bench mark” properties (comps) of similar size, quality and location that have recently sold to determine value. 

The third is the INCOME APPROACH, which is used in the appraisal of rental properties and has little use in the valuation of single family dwellings. This approach provides an objective estimate of what a prudent investor would pay based on the net income the property produces.

Once the processor has put together a complete package with all verifications and documentation, the file is sent to the lender. The underwriter is responsible for determining whether the package is deemed an acceptable loan. If more information is needed the loan is put into “suspense” and the borrower is contacted to supply more information and/or documentation. If the loan is acceptable as submitted, the loan is put into an “approved” status.
Once the loan is approved, the file is transferred to the closing and funding department. The funding department notifies the broker and closing attorney of the approval and verifies broker and closing fees. The closing department then schedules a time for the borrower to sign the loan documentation.

At the closing the borrower should:  

      • Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally not accepted and if they are they will delay the closing until the check clears your bank.
      • Bring identification and proof of insurance.
      • Review the final loan documents. Make sure that the interest rate and loan terms are what you agreed upon. Also, verify that the names and address on the loan documents are accurate.
      • Sign the loan documents.

After the documents are signed, the closing attorney returns the documents to the lender who examines them and, if everything is in order, arranges for the funding of the loan. Once the loan has funded, the closing attorney arranges for the mortgage note and deed of trust to be recorded at the county recorders office. Once the mortgage has been recorded, the closing attorney then prints the final settlement costs on the HUD-1 Settlement Form. Final disbursements are then made.

A typical “A” mortgage transaction takes between 14-21 business days to complete. With Nationwide Equities’ new automated underwriting, this process speeds up considerably.

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