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The ABCs of Home Mortgage Loans

Sheryl Landrum
LoanBiz Columnist

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Article Rating , 4 out of 5 based on 1 votes

Whether you are looking to purchase a new home or refinance one, knowing the mortgage loan process can help make it a much more pleasant experience.

Be prepared to do, and provide, the following when looking at a home mortgage:
  • Talk to at least one recommended lender and determine what amount of mortgage loan you qualify for. Your lender will ask you information regarding your income and assets as well as run a credit report to determine credit scores and debts. If you are refinancing your current home loan, your lender will want to know when you purchased your home, what you paid for it, and what improvements you have made.
  • Once a new home loan amount is determined and approved, be prepared to provide the following documentation when doing a "full-doc" mortgage loan: one month's consecutive pay stubs, W-2s for the past two tax years, two month's consecutive bank and asset statements (all pages), two years federal tax filings if self-employed, employment and rental history for the past two years (who to contact), a copy of your driver's license, a copy of your current mortgage statement(s) and homeowner's insurance declaration page if a refinance.
  • After your paperwork is complete, your lender will submit your file to underwriting, open title and escrow, and call for an appraisal of the home. You will receive paperwork from escrow and possibly a request for additional information from the lender. Taking care of these requests in a timely manner will expedite closing your new mortgage loan.
  • When your loan documents are ready, escrow will call you and set up a time for signing your documents. Escrow will also let you know if you need to bring cash into close; if so, be prepared to provide a cashier's check.
These are the basics in closing a mortgage loan. Now, get your paperwork in order and find a reputable lender to help you move forward.

About the Author
Sheryl Landrum is a Senior Loan Officer with First Capital Mortgage in San Diego and Prudential Realty in Bonsall, California.

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