|What to Expect & Application Tips |
6 Standard Mortgage Loan Application Steps
Inquire About a Loan
- You don't have to spend hours filling out mountains of paperwork for your mortgage application. We encourage you to learn about available loan programs and rates online, over the telephone, by fax or by mail. Why not do all the paperwork from the comfort of your home?
Complete and Sign Application
- Upon receiving your loan prequalification1, we will send you a loan application form completed with the information you supplied to us. Additionally, a Good Faith Estimate of Settlement Charges, a Federal Truth-in-Lending statement, Standard Mortgage Corp disclosures, and a list of documentation we require to process your loan will be included. To expedite your loan approval, you will be asked to review, sign and return these documents to us in a timely manner, by mail, by fax or online.
Processing the Application
- Upon receipt of your executed application, a loan processor will verify for accuracy, your credit, income, and asset information. Then staff will complete a credit and income decision.
- For approved loans, an appraiser near you will be commissioned to review the property. A title company/settlement agent is also selected to handle your closing.
- If there is a company with whom you prefer to work, let us know!
- We encourage you to contact your Loan Originator, at any time, regarding questions or concerns relating to your loan.
Underwriting the Loan for Approval
- The final underwriting process to approve or deny a loan is typically completed within 24 hours of final processing. Each underwriting decision is based upon several basic factors including without limitation, credit, income, debt to income ratios, cash savings, and property appraisal.
- Your Loan Originator will contact you with instructions on how to satisfy specific underwriting conditions when any such issues arise with your home mortgage application process.
Getting Your Money
- After your loan has been approved, closing documents will be prepared and provided to the closing agent for your signature. Signing usually occurs within three days of loan approval. After the closing documents are executed, your loan is recorded.
- Depending upon the type of transaction, funds will generally be disbursed after the rescission period required by law has passed.
Note: All time periods are estimates based on receiving completed documentation, loan approval guidelines, and the services provided by third party vendors.
1 A loan prequalification is a request for an indication of the type and amount of loan you may be eligible to receive. It does not constitute an application or a commitment to lend. A loan prequalification turns into a loan application at the time credit is requested by an applicant. Because Standard Mortgage Corp requires a completed loan application to obtain loan approval it is very important that any requests for additional documentation be provided in a timely manner.
Mortgage Loan Application Tips
Listed below are several tips to ensure that you receive a timely decision on your loan inquiry. These tips are designed to help you avoid some of the most common pitfalls that cause delays in loan approvals. Half of the entire loan process is dependent upon the borrower.
To ensure a speedy credit decision on your loan inquiry, be sure to read and follow these tips.
1. Provide all documentation that is requested. Any missing documentation is likely to cause a delay in your loan approval process. To obtain loan approval, you will typically need to produce:
- Pay stubs covering most recent thirty days
- W-2 statements covering the past two years
- Bank statements covering the most recent three months
- 401K, IRA, or Mutual Fund accounts showing most recent transaction summary
- Stocks or certificates of deposit (copies)
- Purchase and sales agreement (copy)
- 12 months cancelled rent checks or the name and address of your current landlord (if applicable)
- Fully executed divorce decree (if applicable)
- Deed, hazard insurance policy, and most recent tax bill if you are refinancing (copies)
- A letter explaining any known credit problems or fluctuations in income
2. If you are self employed, paid by commission, or own real estate used for rental purposes you will need to produce:
- Two years of signed personal federal income tax returns (including all schedules)
- If self-employed through a corporation, the last two years' corporate returns as well as a year-to-date profit and loss statement and balance sheet
3. If additional information or documentation is requested, please provide it immediately.
4. Read all disclosures carefully and ask questions if you need clarifications. It is best to communicate all requests and clarifications in writing early in the loan process.
5. Ensure that the income you report on your application is the same income as that which is reported on your tax documents.
6. Inform your mortgage loan officer of any past credit problems.
7. When signing your closing documents, sign your name exactly as it is printed. For example, you may need to include your middle name or initial in your signature.