Loan Application

Once the buyer and sellers have agreed on the price and terms of a contract, the next step is the loan application.

First, a preliminary information form is completed with the loan originator.  The loan originator’s goal is to expedite all necessary paperwork and information as quickly as possible, including ordering a credit report and appraisal of the property.  You will need to furnish the lender with the following information:

• Account numbers of creditors (including existing mortgages)
• Names and addresses of all creditors
• Bank accounts (checking and savings)
• Source of down payment
• Employment history (two years minimum)
• Annual income
• If a veteran, V.A. Certificate of Eligibility

The information you provide the lender is strictly confidential. When completing the application at the lender’s office, all people who will be on the title as new owners should be present.  The application normally takes about one hour and you will be required to pay in advance for your credit report and the appraisal.  The credit report is ordered through a credit reporting agency and will cost between $50-$90.  The appraisal is required by the lender to determine that the amount of the loan an down payment does not exceed the appraised value of the property and normally ranges from $300-$500.  These are the only charges required by the lender prior to the closing.  Payment for home inspection, engineer inspection and radon testing may be required a the time they are completed, but have nothing to do with the loan application process.

Your loan originator understands your concerns and is there to help with the approval of your loan.  Feel free to ask any questions if there is something you do not understand.  You will receive an “estimate of closing costs” at this time so you won’t have any surprises at the time of closing.