Step 1: Loan Application 

OwnerLand Realty agent will assist you to meet your loan officer to complete the loan application. You can help speed the loan process by being prepared with information needed on the check list below and having it available at the time of the application interview. 

Employment History     

• Copies of all W2's from last two years.
• Copy of a full month most recent paycheck stubs.
• Copies of two years' tax returns and year-to-date P&L for self-employed borrowers.
• Award letter from Social Security of Permanent Disability.

Financial Information

• Copies of three months of all bank statements, savings, checking, and Credit Union accounts.
• Stock certificates or Bonds (if used for closing).
• Gift from a relative: Need a gift letter from donor, verification of donor's account that holds the funds, and proof of gift transfer
• Purchase contracts on sale of present home and/or relocation agreement for transferee.

FHA/VA

• Name and address of nearest living relative.
• Photo ID and Social Security Card.
• VA Loans: Certificate of Eligibility and copy of DD214 (Discharge papers).

Miscellaneous

• Two-year address history for each borrower.
• Copy of cancelled earnest money check.
• Divorce decree (if applicable).
• Copies of leases if rental property is owned by the borrower.
• Condominium documents.
• Application fee.

Step 2: Loan Submission and Approval

Once the lender has collected all information, your loan application and supporting documents will be submitted to an underwriter. The underwriter's job is to review all documents evaluating the risk to determine if your loan request can be approved.                                                       

1. Stable Income Versus Debt 

Stable income is the income you receive from various sources which is steady and continuing. It should be sufficient enough to handle your new house payment and long-term obligations. Your income and obligations will be evaluated to see if they meet income ratio guidelines.

 2. Assets 

You need to have enough money for the down payment and closing costs, and should also have some extra cash (called reserves) left over for moving expenses, emergencies, etc. The money can come from various sources such as savings/checking accounts, gifts, or sale of assets (house, stocks, etc.). All must be verifiable.

3. Credit 

Your credit history will be checked to see if you have met your monthly obligations in a timely manner. The previous 12 months are especially important. If you have any credit problems, you should discuss them with the lender's representative. Some credit problems may have been caused by extenuated circumstances and a loan may still be granted.

 4. Job Stability 

Lenders like to see that you have been in the same line of work (not necessarily the same job) for at least two years. Time spent going to school can be counted if it is consistent with your current employment. If there are any gaps in employment history, you will be asked to explain them.

5. Property 

The property is the security for the loan. An appraisal is used to determine the value and the condition of the property. Also taken into consideration is the amount of the loan in relation to the value of the property. A lower Loan-to-Value ratio resulting from a larger down payment is generally regarded with less risk by the lender. 

Step 3: Loan Closing

When the loan is approved, all parties will decide when and where you would like to close the sale. Make sure that the lender is aware if certain parties cannot be present at the closing. "Power of Attorney" documents must be reviewed and approved (if even allowed) by the lender. The lender will probably need a minimum of 48 hours to prepare legal documents. Make sure to bring your Homeowner's Insurance Policy and a certified check in the amount of funds necessary for closing. At the closing, you will sign documents agreeing to the terms of repayment and the seller will convey the property to you. A delay in closing can occur if any loan request changes: purchase price, loan amount, escrows or rate of term.