• Social Security numbers for all borrowers.

• Current employers' names & addresses

• Previous employer's names & addresses
      (if less than two years with present employer)

• Addresses for previous two years' rental or mortgage history

• Most recent paycheck stubs covering last 30 days and past two years' W-2's

• Most recent three months'/complete bank, credit union or brokerage statements

• Charge Cards - Provide name, account number, balance owing and monthly payment

• Outstanding Loans - Provide complete addresses, monthly payments, balances, and account numbers.

• VA Loan Applicants - Bring Certificate of Eligibility.  If you do not have one, provide us with a copy of your DD214 so we may order a certificate from the VA.

• FHA Applicants - Picture ID (driver's license) and SS card.

• Self-Employed Applicants - Past two years personal tax returns, corporate or partnership returns and year-to-date P/L statements and balances sheets.
  

The pre-approval process is much more complete than pre-qualification. For pre-qualification, the loan officer asks you a few questions and provides you with a pre-qualifying letter. Pre-approval includes all the steps of a full approval, except for the appraisal and title search. Pre-approval can put you in a better negotiating position, much like a cash buyer.  

Guaranteed FANNIE MAE underwritten, same day approval.

What is a rate lock?

A rate lock is a contractual agreement between the lender and buyer. There are four components to a rate lock: loan program, interest rate, points, and the length of the lock.

Adjustable Rate Mortgage

a mortgage loan in which the interest varies in accordance with changes in a specified index, and may result in changed monthly payments.

Adverse Action

a denial of a loan in an amount and on terms acceptable to the borrower.

Annual Percentage Rate (APR)

the actual cost of credit to the borrower, including interest and certain other charges, expressed as a yearly rate and calculated over the life of the loan.

Application

an oral or written request for an extension of credit. Usually a printed form on which the lender collects credit, income and debt information about a prospective borrower, plus facts about the property being used to secure the loan. A fee may be charged at the time of application.

Appraisal

an inspection of the property to assure that its market value exceeds the amount of the loan. A fee may be charged for the appraisal.

Borrower

the person, sometimes referred to as the mortgagor, who obtains a mortgage loan.

Closing

the time and date set for the transfer of the property from seller to buyer and/or for the signing of the loan documents.

Closing Costs (settlement costs)

fees, in addition to the purchase price of the property, charged at closing which include but are not limited to lawyer's fees, title search and insurance, survey charges and fees to record the deed, mortgage and other documents.

Commitment Letter

a lender's written offer to grant a mortgage loan outlining the terms, the amount of the loan, the interest rate, and any other conditions. It can also serve as a communication of the lender's decision on the borrower's application.

Counter Offer

an offer made by the lender to grant credit other than in the amount or terms requested by the application.

Equal Credit Opportunity Act

federal and state laws that prohibit discrimination in the granting of credit based on race, color, religion, national origin, sex, marital status, age, or whether a person is receiving public assistance or alimony.

Escrow Account

money collected in advance by the lender, usually on a monthly basis, for the payment of real estate taxes, betterment's and/or insurance.

Fixed Rate Mortgage

a conventional mortgage loan with a set interest rate and equal monthly payments for the entire term of the loan.

Lender

the entity or person, sometimes referred to as the mortgagee, who offers the mortgage loan.

Lien

a legal claim, granted by contract or by a court, against a property. A mortgage is one link of lien.

Loan to Value Ratio

the percentage comparison between the unpaid principal balance of the mortgage and the sales price or the appraised value of the property, whichever is lower.

Mortgage

a lien placed by the lender on the borrower's property and removed when the note has been paid in full. If the borrower defaults on the note, the lender can sell the property to satisfy the debt.

Mortgage Review Board

a voluntary board consisting of an equal number of lenders and community representatives who will review the residential mortgage loans denied by participating lenders where the applicants believe the denial was based on the location of the property.

Note

the borrower's legally binding written promise to repay a debt to a lender on a specific date.

Point

a sum of money, equal to one percent of the principal amount of the mortgage, charged by the lender to cover certain costs of making a loan or to "buy down" your interest rate.

Private Mortgage Insurance

protection for lenders against borrower default. Paid for by the borrower and usually required when the down payment is less than 20% of the purchase price.

Rate Lock Agreement/Interest Rate Commitment

a written agreement by which a lender will hold an interest rate on a mortgage for a specified period of time. The terms and conditions of a rate lock agreement vary from lender to lender.

Real Estate Settlement Procedures Act (RESPA)

a federal law that requires a good faith estimate of closing costs required to be given on certain first mortgage.

Right of Rescission

state and federal laws that allow consumers who refinance first mortgage and certain second mortgages to cancel their contract and receive a refund of all the mortgage fees. This must take place within three business days following the closing, or following the delivery of the required information and rescission forms and disclosures, whichever occurs last.

Secondary Mortgage Market

investors who purchase residential mortgages originated by lenders.

Title Insurance

protection against loss due to defects in the title that were not uncovered in the title search and not listed in the title report. Both the lender and the borrower may purchase title insurance to protect their own interest.

Title Search

an examination of legal records to check the validity and completeness of the title to the property. The title search should uncover any liens, overdue assessments or other claims against the property.

Truth in Lending

federal and state laws that require lenders to provide borrowers with full disclosure of the true cost of a loan and easy to understand information about the annual percentage rate and terms of the loan.

Urea Formaldehyde Insulation Notice (UFFI)

a state law requiring a borrower or seller to disclose to a lender the absence or presence of UFFI and formaldehyde lever in a dwelling.