Mortgage Information Packet

What to Expect When Buying a Home

IF YOU KNOW WHAT TO EXPECT, FINDING THE PERFECT HOME AND FINANCING IT CAN BE AN EASIER PROCESS.

Obtain a Mortgage Pre-qualification Before You Begin House Hunting

• Learn how much you can spend on your new home, and what financing is available to you.

• Being pre-qualified helps strengthen your bargaining position with sellers. STEP 1

Find the Right Home

• Determine the basics you want for your family (for example, fenced yard or a certain number of bedrooms).

• Create a wish list of additional features you’d like to see. • Take notes as you preview homes.

STEP 3

Make an Offer

• Your real estate agent will present your offer to the seller, who will accept, counter or reject it.

• When the price is settled, you and the seller will sign a Purchase Agreement, defining the terms of the sale.

STEP 4

Home Inspection

• A home inspection is a limited, non-invasive examination of the condition of a home, usually conducted by a home inspector who has the training and certifications to perform such inspections.

STEP 5

Choice Financial Mortgage Solutions

There’s a feeling of pride in buying a new home.

We can help you capture that feeling with a variety of

home loan options. Let’s find one that fits you.

• VA • Vacation Home

• FHA • Investment Property

• Construction • Conventional/Conforming and Jumbo

Choose a Real Estate Agent

• Select a professional who knows the market and will listen to your needs. • Ask for references from former clients.

Mortgage Underwriting

• Your lender will review your income, assets, credit history and appraisal and will determine a final loan decision. This process is called “underwriting”. STEP 9

Obtain Title Insurance

• This insurance guarantees the property you’re purchasing is free of liens or confusion in rights of ownership.

• The policy insures against any losses to the property that result from defects in the title or deed.

STEP 8

The Home Will Be Appraised

• An appraisal, required by your mortgage lender, is a formal, written estimate of the home’s current market value.

STEP 7

Close the Deal

• Ownership of the property is transferred to you.

• If approved, a closing agent will coordinate and distribute all the necessary paperwork and funds.

STEP 10

Gather Information for Your Lender

• Now that you have signed your Purchase Agreement, the loan process begins. To help prepare your loan application, your lender needs to gather basic items/information along with supporting documentation.

Documents Needed For Your Home Loan

HAVING YOUR DOCUMENTS READY WILL MAKE A QUICK AND EASY LOAN APPROVAL PROCESS.

Have these items ready for your mortgage lender:

IDENTIFICATION

Drivers license or valid photo ID Social Security Number for all buyers Veterans: Certificate of Eligibility or DD-214

INCOME

W-2 forms for the last two (2) years

Most recent pay stubs covering a 30-day period

If you are receiving bonus or commission income, provide signed copies of complete personal federal tax returns for the last two (2) years

Federal tax returns (1040’s) for the last two years, IF YOU: • Are self-employed

• Earn regular income from capital gains • Earn sizable interest income

• Earn more than 25% of your income from commissions or bonuses • Own rental property

• Are in a career where you take non-reimbursed business expenses

Corporate or Partnership tax returns (if you own more than 25% of the business) Pension/Retirement copy of check or bank statement with direct deposit (for retired individuals)

Social Security Award Letter (for those receiving Social Security) Disability Reward Letter (for those receiving Disability)

Divorce Decree

• For those receiving child support or alimony to document receipt of child support or alimony (if you desire to show it as income) • Copy of Divorce Settlement (to show the amount)

• Copies of twelve months canceled checks to document actual receipt of funds Gift Letter—signed by all parties (for those receiving funds as a gift from a family member) The lender can provide a blank form

Gifts also require:

• Verification of donor’s ability to make the gift (bank statement) • Copy of the check used to make the gift

ASSETS

Bank statements for previous two to three (2-3) months on all accounts that will be used for qualification purposes; all pages, even if you don’t think they’re important, should be included

Statements for two (2) months on all stocks, mutual funds, bonds, etc

Latest 401(k) statement (or other retirement assets they can count as reserves) Explanations for any large deposit and source of those funds

If selling a home…

• copy of the sales contract

• copy of HUD1 Settlement Statement on recent sale of home

Note: If you receive statements via the internet, these are not always acceptable to lenders, especially when the printed version does not contain the borrower’s name, account number, and the name of the institution.

CREDIT

Landlord’s name, address, and phone number (if you rent - for verification of rental) Copy of bankruptcy papers if you have filed bankruptcy within the last seven (7) years Explanations for any of the following items which may appear on your credit report: • Late payments

• Credit inquiries in the last 90 days • Charge-offs

• Collections • Judgments • Liens OTHER

Name and phone number of your insurance agent for homeowners insurance

If you have already made an offer, bring a copy of a fully executed sales contract/purchase agreement, with all addendums

INFORMATION NEEDED PRIOR TO LOAN CLOSING

Homeowners insurance declaration page (name and phone number of your insurance agent) Flood insurance declaration page, if property is identified as being in a flood zone

ITEMS TO BRING TO LOAN CLOSING

Cashier’s check payable to Title Company for amount required to bring to closing (down payment, closing costs, prepaid expenses)

SELF-EMPLOYED

If you’re self-employed, there are additional items you’ll need to bring:

If you’re a self-employed borrower, most recent two (2) years personal tax returns including all schedules; also provide a copy of your Profit and Loss Statement through the most recent quarter/year

Moving Notification Checklist Date Notified Date Effective

Post Office

Department of Motor Vehicle/Driver's License Employer Human Resources Dept.

Voter Registration

Magazines/Subscriptions/Newspaper (allow six weeks to change)

Credit Card(s)

Insurance Company/Agent

Investment Company/Stockbroker Finance Companies/Car Loan Bank/Credit Union/Loan Companies Cable/Internet/Satellite TV Companies Cellular/Telephone Providers

Airline Frequent Flier Cards Charity/Non-profit Organizations Unions

Alumni Associations

Doctors/Dentists/Other Medical Professionals Attorney/Accountant

Veterinarian

Church Clubs/Organizations Schools

Tax Assessors

Social Security Administration Dept. of Veterans Affairs Draft Boards

Pharmacist

Emergency Road Service/AAA Delivery Companies

• Additional Services •

• Choice Financial Mortgage Loan Officers •

Paul Canton

Brian Wiesner

Dave Selinger

Deb Kolling

John Wallman

Protect what matters most. We offer competitive rates and coverage options.

Ask your mortgage expert how to get a free insurance quote today!

HOME EQUITY LOANS & LINES OF CREDIT

Put the equity in your home to work with a line of credit or loan. Buy

a new car, consolidate debt or make home improvements. Ask your mortgage expert for more details.

(Subject to qualification.) Products sold through our Insurance department are:

Dickinson Belfield

Walhalla Langdon

Grafton