Loan Process

An Overview of the Loan Process

Get Organized !

A properly documented loan application makes your loan process go smoothly. This checklist will help you gather your paperwork.

INCOME / EMPLOYMENT ITEMS: If you are salaried: provide W-2's for the previous two years and the most recent 30 days worth of paystubs. If you are self-employed, provide tax returns for the previous two years, including all schedules, and a YTD profit and loss statement. (Note: you may provide copies of all requested documents. Originals are not necessary, but if you bring originals, I will photocopy them for you and return your original to you)
OTHER INCOME: If you own rental property, provide recent rental agreements and tax returns for the previous two years, including all schedules.
ASSET STATEMENTS: To speed up the approval process, provide bank statements for the most recent two months, and your most recent statement (quarterly statement usually) for stock, mutual funds and IRA/401K accounts.
LEGAL DOCUMENTS: If applicable, provide a copy of your divorce decree and settlement agreement.
LEGAL DOCUMENTS: If any borrower has filed bankruptcy, provide the Discharge Notice, Filing and Schedule of Creditors.
IDENTIFICATION: Have your drivers license and social security card with you if possible for verification of identity. If you are NOT a US citizen, provide a copy of your green card (front & back). If you are NOT a permanent resident provide a copy of your H-1 or L-1 visa.
OTHER: If you are requesting a cash out refinance, provide a letter explaining how you will use the refinance proceeds. If you have had derogatory credit in the past, please be prepared to write an explanation letter explaining the circumstances surrounding it.
If you are applying for a home equity line of credit or loan (second loan), also include your first mortgage note. (This should be with your closing loan documents.)

Let's Talk! Getting qualified before you apply for a loan can help you understand how much you can borrow.

When buying a home, you may be pre-qualified or pre-approved. You can be pre-qualified over the phone or on the Internet in a few minutes although a Pre-qualification is not as useful as pre-approval. Pre-approval requires a more rigorous process, including verification of your credit, income, assets and liabilities. It is highly recommended that you be pre-approved before you start looking for a home.

Being pre-approved will:

Inform you of your maximum affordable home value, and save you from previewing properties outside your price range.
Put you in a stronger negotiating position with the seller, because the seller will know your loan is pre-approved.
Help you close quickly, since your loan is pre-approved.

Compare Loan Programs and Rates

What loan program is best for your situation? At Mortgage Atlantic, we offer many different loan programs and options. I will be happy to explain all the options available to you when we discuss your loan and help you make the best possible choice for you.

Think about how long you plan to keep the loan. If you plan to sell your home in a few years, you may want to consider an adjustable rate or balloon loan. If you plan to keep your home for a longer time, you may want to consider a fixed rate loan.
Understand the relationship between rates and points. Points are considered prepaid interest and may be tax deductible. Each point is equal to 1 percent of the loan. For example 1 point on a $150,000 loan is $1,500. The more points you pay, the lower your rate.
Compare different loan programs. With so many programs to choose from, it's hard to figure out which program is best for you. I will be happy to look at how each option will benefit you in the long and short term, and also the risks involved.

Apply for the Loan & Get Approved!

Once we have discussed and decided which type loan is best for you, I will need to gather your personal information pertinent to processing and approving your loan. This can be done several different way:

Over the phone
online via the applications on this website
via mail

Generally, I will have a 10 - 20 minute phone conversation with you and complete your initial application over the phone, if you're comfortable with giving me the information that way. Then, I can create all the documents required to make up your loan package.

I will then start the loan approval process immediately. This involves verifying your:

Credit history
Employment history
Assets including your bank accounts, stocks, mutual fund and retirement accounts
Property value
Based on your specific situation, additional documents or verifications may be required.

Important things to do or remember during the process:

Respond promptly to any requests for additional documents. This is especially critical if your rate is locked or if you plan to close by a certain date.
Do not make any major purchases. Do not buy a car, furniture or another house till your loan is closed.
Anything that causes your debts to increase might have an adverse affect on your current application.
Do not move money into your bank accounts unless it can be traced. If you are receiving money from friends, family or other relatives, please contact us.
Do not go out of town around the closing date. If you do plan to be out of town when your loan is expected to close, you may sign a power of attorney, to authorize another individual to sign on your behalf.
Please notify us before applying for any other credit, including credit cards, personal loans or even with another mortgage company. Some loan programs have strict guidelines regarding your credit score. Credit inquiries may lower your credit score and may have an adverse affect on your loan approval.

Close the Loan

After your loan is approved, you will be required to sign the final loan documents. This will normally take place at a Settlement company or an Attorneys office. Be prepared to:

Bring a cashiers check for your down payment and closing costs if required. Personal checks are normally NOT accepted.
Review the final loan documents. Make sure that the interest rate and loan terms are what you were promised. Also, verify the accuracy of the name and address on the loan documents.
Sign the loan documents. The notary will require that you have your picture ID with you. Some lenders also require to see your Social Security card.

Your loan will normally close shortly after you have signed the loan documents. On refinance and home equity loan transactions, federal law requires that you have three days to review the documents before your loan transaction can close. Purchase transactions do not have a three day rescission period.

Summit Home Mortgage, Inc. -
Office Phone: (434) 946-7770 Fax: (434) 946-7775 Cell Phone: (434) 238-8984
Toll Free Phone: 1-866-946-7770

Summit Home Mortgage, Inc.

Licensed by the Virginia State Corporation Commission: License MC-2396