Important Information to Know While Applying for a Loan
Below is a list of topics we wanted to make you well aware of with the intent of making your loan process as smooth as possible. These are potential pitfalls that should be avoided as well as helpful tips to make your experience obtaining a home loan a smooth one. Due to the continued guideline changes via Fannie Mae, Freddie Mac and HUD, we feel it is imperative you are well versed in these areas.
1) Don’t go shopping! -It’s very important that your financial situation remain the same from the time you make initial application until closing. All lenders are now required to run a brand new credit report within days of closing your loan. This will reveal any new credit established as well as any new inquiries on your bureau. If anything shows up that wasn’t there at the time of application, it will need to be addressed.
2) Transferring funds/Gift Funds -There are specific requirements regarding documenting these
transactions. Please consult with your loan officer before moving any funds.
4) “Sourcing” -This refers to documenting any out of ordinary deposits or withdrawals that appear on the bank statements you provide. Anything out of the ordinary that appears on your statement will need to be documented. In addition, in order to credit you earnest money, appraisal expenses, etc at closing we will need evidence these checks have cleared your bank prior to closing.
5) Pay Stubs & Bank statements -Everything in our business runs in 30 / 60 day cycles. Income must be within 30 days of closing and assets, 60. An example, if you are pre approved in March and your loan closes in June, we will need updated paystubs, bank statements, etc for underwriting.
6) IRS -The income documents that you provide us must match the tax transcript we pull directly from the IRS. Additionally, an easy way to consider if income is allowed for qualifying purposes is “if you don’t pay taxes on the money, it will not be allowed as income”. Of course there are unique situations to be considered but for the most part, it is pretty cut and dry.
7) Homeowners Insurance – please consider who you will be using for homeowners insurance as early as possible. We need to know the dollar amount of your policy to make sure your figures are as accurate as possible as well as your homeowner’s agent’s contact information to get the necessary information for underwriting. We certainly would not want this to delay your closing.
8) Appraisal -this is the only up front expense you will incur with Community Mortgage Corp. This cost is not charged until you have an agreed upon contract and have decided to move forward with your loan. These costs can be credited at closing reducing your “cash to close”.
The business of getting a mortgage loan is guideline driven. With the experience and expertise of a Community Mortgage loan officer and your cooperation we will navigate this process with ease.
Please consider all of the above items once you have applied for a home loan.
Scott B. Sorin
Community Mortgage Corporation
Office: (901) 759-4344
Cell: (901) 378-2244
scottsorin@communitymtg.com
