The Mortgage Process

The following sections provide an overview of the mortgage process:

• Loan Application
• Credit Report
• Verification
• Property Appraisal
• Underwriting
• Interest Rate
• Closing
   

LOAN APPLICATION

Applying for the loan is one of the most critical elements of the mortgage process. During this process your mortgage consultant will ask for information pertaining to your income, assets and liabilities. Once this information has been collected your mortgage consultant will recommend a loan program that best fits your financial needs. See Fannie Mae's "How Much House Can You Afford"

Prior to loan application you will need to determine the amount of down payment you will be making towards your new home and collect the following documents that should be brought with you when you make loan application:

• Most recent paycheck stubs for each borrower covering the most recent thirty-day period.
• Most recent two years W-2's and/or 1099's for each borrower.
• Two months of the most current and consecutive banks/investment/ retirement statements for all your accounts.
• If self-employed you will need to bring in the most recent two years' tax returns and copies of 1040's, W-2's, 1099's and or K-1 for each borrower. You will also need a year-to-date profit and loss statement.

However, if it is more convenient, many lending institutions allow you complete your loan application on-line.  If you’d like, a Benchmark Homes Sales Representatives may also assist you with the pre-qualification process by reviewing your financial situation with highly-regarded lenders to help you find the best lender for your specific needs. Fill out a “Pre-Qualification Form & Release Agreement” (I’ll attach a form as soon as I have it?!) and bring it to a Sales Representative to get started.

CREDIT REPORT

A credit report will be obtained as part of the loan application process. The credit report will show your payment history, credit limits, monthly payments and current balances.

VERIFICATION

We will verify the information disclosed on your initial loan application (i.e. income, assets and liabilities).

PROPERTY APPRAISAL

A Mortgage Consultant will order a property appraisal from a licensed real estate appraiser on the property in which you are purchasing. The appraisal is done to determine the value on the property being purchased and your loan amount.

UNDERWRITING

A loan decision will be issued based on four factors - income, assets, credit record, and property value. An Underwriter will review the information on your loan application and the information collected on your behalf. Additional information or documentation as required by the loan program guidelines may be requested.

INTEREST RATE

You have the opportunity to establish an interest rate guarantee or "lock" the interest rate during the process before your closing.  Each lending institution offers different rates, lengths of lock-in, and the cost to “float down” your rate of you’ve locked and rates decline. It is your responsibility to understand, manage and make the decision to lock the interest rate on your loan.

It is your responsibility to contact your Mortgage Consultant to determine the interest rate and lock in your loan. Keep in mind that interest rates can change at any time and without notice. Rates generally change a little bit each day, sometimes better - sometimes worse. Sometimes rates can change several times a day. If you know that the financial markets are going through a particularly volatile period, you may want to check with your Mortgage Consultant periodically to make sure rates are at a comfortable level.  Click here to inquire about current interest rates and to calculate what your rate would be.

CLOSING

Benchmark Homes and our Contract Manager will coordinate a firm closing date and time with you.

The Benchmark Homes Customer Service Representative will schedule a final walk-through of your new home before closing to make sure it is ready for you and to ensure that any contingencies specified in the commitment letter about the home's condition have been satisfied.

Prior to the closing you must obtain homeowner's insurance with a carrier of your choice. This information must be provided to your Mortgage Consultant prior closing. Your Mortgage Consultant will provide you with the amount you will need to bring to closing. Funds needed for closing must be in the form of a certified check or cashier's check.

Your Mortgage Consultant will go over the settlement charges with you and have you execute the Note and other applicable closing documents.

Congratulations!  You are now a homeowner!