Loan Process

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An Overview of the Loan Process

Organize Your Documents

A properly documented loan application makes your loan process go smoothly. This checklist will help you gather your paperwork.

Complete and sign the residential loan application, Form 1003, and the attached loan info sheet, credit authorization and fair lending notice. Page 4 of the application is a continuation page in case you need additional space for your assets or liabilities. If you make a mistake while filling out the application cross it out, and make a change. Do NOT use whiteout.
If you are salaried: provide W-2's for the previous two years and one month of paystubs. If you are self-employed, provide tax returns for the previous two years, including all schedules, and a YTD profit and loss statement. (Note: provide copies of all requested documents. Do not provide original documents.)
If you own rental property, provide recent rental agreements and tax returns for the previous two years, including all schedules.
To speed up the approval process, provide bank statements for the most recent three months, and recent statements for stock, mutual funds and IRA/401K accounts.
If you are requesting a cash out refinance, provide a letter explaining how you will use the refinance proceeds.
If applicable, provide a copy of your divorce decree and settlement agreement.
If you are NOT a US citizen, provide a copy of your green card (front & back). If you are NOT a permanent resident provide a copy of your H-1 or L-1 visa.
If any borrower has filed bankruptcy, provide the Discharge Notice, Filing and Schedule of Creditors.
If you are applying for a home equity line of credit or loan (second loan), also include your first mortgage note. (This should be with your closing loan documents.)

Get Pre-Approved

Getting Pre-Approved before you make an offer to purchase a home will allow you to negotiate from a postion of strength, as the seller will know that you are a serious buyer.

When buying a home, you should always get Pre-Approved before shopping. Some lenders will talk to you about a Pre-qualification. This is not as useful as a Pre-Approval as it is only based on assumptions and generalizations. A Pre-approval entails a more rigorous process, including verification of your credit, income, assets and liabilities. At Consumers Mortgage Corporation, we only do Pre-Approvals, never Pre-Qualifications, as this is in the best interest of our customers. It is highly recommended that you be pre-approved before you start looking for your new home.

Being pre-approved will:

Inform you of your maximum affordable home value, and save you from previewing properties outside your price range.
Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved.
Help you close quickly, since your loan is pre-approved.

Obtain Loan Approval

Once your loan application has been received, we will start the loan approval process immediately. This involves verifying your:

Credit history
Employment history
Assets including your bank accounts, stocks, mutual fund and retirement accounts
Property value
Based on your specific situation, additional documents or verifications may be required.

To improve your chances of getting a loan approval:

Fill out the loan application completely.
Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
Do not make any major purchases. Do not buy a car, furniture or another house till your loan is closed.
Anything that causes your debts to increase might have an adverse affect on your current application.
Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us for 'Gift Fund' documentation requirements.
Plan on being in town for your loan closing. You will need to be present to sign all of the closing documents. Additionally, if you are married, your spouse will need to be present at the closing even if he or she is not on the loan.
Notify your loan officer before applying for any other credit, including credit cards, personal loans or even with another mortgage company. Some loan programs have strict guidelines regarding your credit score. Credit inquiries may lower your credit score and may have an adverse affect on your loan approval.

Close on Your New Loan

After your loan is approved, you will be required to sign the final loan documents. This will normally take place in the presence of a notary public. Be prepared to:

Your closing will be a scheduled time to meet with your Loan Officer and / or closing agent. Typically, the seller will not be at this meeting. If you are married, both of you will need to attend. The closing should take no more than 30-60 minutes, and can be arranged at a time and place convenient to you.
Bring a cashiers check or money order for the balance of your down payment and closing costs, if necessary.
Sign the loan documents. The notary will require that you have your picture ID with you.
Your loan will normally close shortly after you have signed the loan documents. However, for refinance and home equity loan transactions, federal law requires that you have a three day 'right of recission' period, during which time we cannot file your mortgage. Purchase transactions do not have a three day rescission period.

CALL TOLL FREE 866-462-0001

Currently lending in:
Ohio, Arizona, Alabama, California, Connecticut,
Delaware, Florida, Hawaii, Indiana, Maryland, Michigan, S. Carolina, Tennessee,
Virginia & W. Virginia, Pennsylvania, and Oklahoma among others.

State License Numbers:

Arizona	California	Florida	Ohio	Michigan	Tennessee
BK 0907305	413 0961	CL 0800176	MB.802939.000	FL 0016982	0000003985