Our only speaker today was Denise Wing, owner of Academy National Mortgage in Lakewood, Colorado. Denise took her time today to talk to us about getting a mortgage loan.
PROCESSES FOR A MORTGAGE LOAN
1. Choose the lender you will work with. Don’t allow credit reports to be pulled until you have chosen who you will work with
2. Once lender is chosen, complete a loan application, either on line or in person & provide all the necessary documentation asked for.
3. If the lender does not ask you to provide documents prior to giving an approval – approval can be no good. Needed items, 30-days’ of pay stubs, 60 days of bank statements, W-2s & tax returns 1 or 2 years & a signed authorization for a credit report. Some additional items may be needed depending on individual circumstances.
4. Once a completed application is received
a. Denise will review the application & documentation provide. Do some manual prequalifying & if additional information is needed to determine qualification & best loan for borrower, she will ask for additional documentation.
b. Denise will pull credit and run the loan through the automated underwriting system to obtain a credit approval. The documentation that is provided is critical because information that is keyed in makes a huge difference in the outcome of approval.
c. The lender must provide specific disclosures within 3 days of the application. If these disclosures are not provided in a timely manner the lender will ask you to sign a new application in order to meet the requirements for these disclosures. The borrower must acknowledge & sign these disclosures. Usually done by e-signing.
d. The automated findings will tell us what documentation is required to send the loan to the underwriter for a complete approval. Once the underwriter receives the loan package, they may also have additional requirements.
1. During this timeframe we are collecting title insurance, homeowner’s insurance, appraisal, gift letters & documentation, if required, verifying employments, if required, verifying self-employments i.e. web pages, CPA letters, State of Colorado filings, etc., letters of explanation for credit, inquiries, any items in the loan package that need explaining, drivers’ licenses, etc.
e. Once all the required information is received & the underwriter has reviewed it, they will issue a final loan approval. At that time, Denise can request the Closing Disclosure (CD).
5. The closing disclosure is the document that will tell the borrower the final amount due at closing. This preliminary disclosure, not always final figures, must be received by the borrower & documentation of receipt a minimum of 3 business days before closing. Example: if the borrower is closing on Monday, the CD must be receipted by midnight the Thursday prior, assuming there are no holidays within that time. If the CD is not receipted by the borrower in time, the closing MUST be moved out. If there are changes to the loan that require re-disclosure of the CD, the closing must be pushed out another 3 business days from receipt of the revised CD.
6. Anywhere between 1-3 days prior to the closing date, a new credit report will be pulled, and all employments will be re-verified. If there have been new accounts opened or there has been a change in employment, the loan must go back to underwriting. This can cause the loan to be declined, depending on the circumstances or could cause something to change on the loan requiring a new CD be issued. These delays can cause additional issues such as a lock expiring, purchase contract expiration, etc.
The importance of keeping in contact with the loan officer is critical. If anything changes during the processing of the loan, the loan officer needs to know. When purchasing a home or refinancing a home, do not change jobs, do not open additional credit until after the loan has closed, and in the case of a refinance until after the loan has disbursed. If you are looking for a mortgage lender that knows all the ins and outs of the mortgage industry give Denise Wing and Academy National Mortgage a call!
Denise Wing * Academy National Mortgage * 303.987.0622 * firstname.lastname@example.org * www.academynational.net