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BUYERS GUIDE

Your preliminary approval can be issued the same day you apply depending on the complexity of your profile. You may apply in person, by phone, or by filling out our Preliminary Approval Form. Here are your three simple steps to apply, and below that you will see what to expect through the time frames of a transaction.   

Step 1.
 Apply with Kevin in person, by phone or via our Preliminary Approval form.

Step 2. Supply the following items;       

___2 or 3 most recent pay stubs. If you are paid bi-weekly 3.   

___2 years most recent W-2s from all employers. 

___2 years tax most recent filed tax returns if you are self-employed, own multiple homes, and/or you earn greater than 20% of your income by bonus/commission type income.     

___2 month’s most recent checking, savings and retirement statements, all pages included even if blank. 

___We need two forms of ID. For example; copy the front and back of driver license, passport photo page, or social security card works. 

Here are your options to supply your documents;

* Arrange to hand deliver to Kevin.

* Upload to our Secure Guest Up-loader at: 

https://www.nwmortgage.com/GuestUploads.aspx
 
(Call or email Kevin for password)

* Email items to kevind@nwmortgage.com using password protection.  

Time frame 1.
 You have supplied all your items, time to meet with Kevin by phone or in-person. Kevin will confirm your credit scores, your debts shown on the credit report, ask if you have other income or debt to disclose such as child support, alimony, back IRS debt, do you owe your uncle money, etc. We must calculate an accurate debt to income ratio to be sure it remains under caps, and keep you financially safe making your house payment. We will discuss how locking an interest rate works, discuss your loan choices, loan criteria, monthly payments, down payments and closing costs in your range. All going well, you should feel confident to proceed and Kevin can issue a preliminary approval in writing to you and your real estate agent. Do not make an offer on a home without it. From this point, do not allow any other firm to pull your credit, no same as cash accounts, no new cars, and do not take gift funds or cash advances without talking with Kevin first. And, notify Kevin if you are expecting a big check from some source that is above and beyond payroll. Such as a big instance an insurance check, etc. We need to account for large deposits to be sure you are not borrowing money that should otherwise be included in your debt ratio. And, keep in mind it is not ok to borrow money for a transaction unless it is secured by something. Such as your 401k, your car, your house.   

Time frame 2. Green Light, make an offer on a home! Some make multiple offers on multiple homes, not at the same time necessarily, but let Kevin know which homes you approach to make an offer on so we can talk about the numbers, and be sure you are qualified to buy it.     

Time frame 3. Offer accepted, time to lock your rate. Rates discussed in earlier time frames were not locked. They were estimated, but not locked because we need you in a seller accepted deal before we can discuss locking your rate. We generally do a 45 to 60 day lock. The loan must close in this locked time frame or extension costs would be incurred. Once locked, we produce a formal loan application, a “Loan Estimate” and disclosure package. This is about 30 pages for you to hand sign. It details your profile, the property profile, your specific loan terms and state and federal disclosures. You will also receive a set by secure email from the wholesale lending source we use to lock the rate. Their email will prompt you to accept electronic delivery of their loan set, and to E consent to proceed with the transaction. There is no need to fill anything out, or to hand sign their electronic set. Simply look through it and call Kevin with questions. I basically apply for your loan on your behalf, and work with you and the source form start to finish when you get the keys. The source pays my commission at loan closing, not you.      

Time frame 4. Get your home inspection ASAP, we order the appraisal, and you shop for home insurance. When ready, tell your agent you have selected them to provide insurance, and Kevin will be in touch to supply the lender loss payable clause, loan number and other details for the insurance binder. This binder is underwritten with other final exhibits so don’t’ wait to select an agent and have them ready for Kevin to call. Also in this time frame, you will receive a title report from the title/escrow company handling the transaction. It shows all their contact info, who exactly is in title, what liens, mortgages, judgments, easements, and other facts about the property such as the complete legal description, plat map, and other info pertaining to the property and transaction. Most title reports are pretty clean. Call Kevin and your escrow officer to go over it if you like.     

Time frame 5. When your appraisal is back, you will need to accept it electronically similar to how the application was accepted. If it comes in low, you will consult your agent for next steps. Most appraisals are fine. All going well, we submit the appraisal, your insurance binder, and any trailing loan conditions for final underwriting and approval to enter closing stages. This final underwrite may take a few or three days.     

Time frame 6. When your file is clear to close, a Closing Disclosure (CD) will be sent to your email to be reviewed and accepted electronically. Once you accept it, a 3 day waiting period starts before you can sign your final loan closing documents at escrow. During this wait period, the lender will send final loan documents to the title company. The title company will primp the final numbers and make an appointment for you to sign on the third day, or soon thereafter. They will also let you know how much to bring in the form of a cashier’s check or wire. This is also known as escrow. A cashier’s check is safer. Bring it, hand it to the escrow officer. If you wire, be sure you get wire instructions directly from the title company. Call the escrow officer from the phone shown on the title report and arrange to get wire instructions for your specific transaction. You will bring photo ID to signing, and make sure you sign documents in the same style as your ID shows.  

Time frame 7. Once you have signed, the lender reviews the seller and buyer executed documents, then a wire of your loan proceeds is sent to escrow. This can happen the same day in some cases where you sign early in the morning, but usually funding and recording will happen the next day. We target your escrow signing date to be a day or two prior to the date you must close shown on the purchase agreement.   

Time frame 8. Loan closed, mortgage recorded, you get the keys. Check with your agent on getting your keys. Then enjoy your new home!!