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Introduction
Documents You Will Need
On-line Loan Application
Completing the Loan Application
Loan Application Processing
Interest Rates
Cost of the Mortgage
Rates & Fees
Purchase Agreement/Sales Contract
Required Information
Personal Information
Employment
Personal Assets
Indebtedness
Additional Information
Pre qualification Work Sheet
Waiting
Introduction and step by step
instructions to help you with the Mortgage Loan Process
We hope this information is helpful
in understanding the Mortgage Loan Process. If you do not understand
a term, go to the glossary.
If you have any questions, please e-mail us or feel free to call
us at (505) 830.6070 with any questions you may have.
We will be more than happy to assist you!
Buying a Home may be one of the most confusing and stressful
financial transaction you may ever undertake. Even if you have done
it several times you can still find the process complicated and
intimidating, particularly when it comes to getting a mortgage loan.
Many are unfamiliar with the terminology
of Mortgage Loans, and all the Documents. If you understand the
steps required to qualify for a mortgage loan much of the stress
can be avoided. The following explanation of the loan application
process is intended to help you through the complexities of obtaining
a mortgage loan.
Documents You will Need To
Apply for a Mortgage
Here is a list of the documents most commonly needed in order to
apply for a mortgage loan. You may need additional documents depending
upon the type of loan you're applying for, so be sure to check with
the lender.
- Application Fee (cost of appraisal and credit report)
- Legible sales contract signed by Buyers and Sellers.
- Social Security number of all applicants.
- Complete address for the past 2 years (including complete name
and address of landlords for past 24 months).
- Name, address, and all income earned from all employers for
past 24 months.
- Copies of previous two years W-2 forms.
- Copy of most recent year-to-date pay stub.
- Name, address, account number, monthly payment and current balance
for: installment loans, revolving charge accounts, student loans,
mortgage loans, and auto loans.
- Name, address, account number, and balance of all deposit accounts,
including: checking accounts, savings accounts, stocks, bonds,
etc.
- Three months most recent statements for deposit accounts, stocks,
bonds, etc.
- If you choose to include income from Child Support/Alimony bring
copies of court records of cancelled checks showing receipt of
payment.
If you are applying for a V.A. Loan:
DD-214, Certificate of Eligibility, or statement from your Commanding
Officer if you are on active duty.
If you are self-employed or paid by commission:
Previous two years Federal Income Tax Returns with all schedules
and a year-to-date profit and loss statement.
If you own other properties:
- Address of properties and current market value.
- Any debt owed on properties; Lender's name, address, account
number, monthly payment, and current balance.
- Copy of previous two years Federal Income Tax Returns with all
schedules.
- If rented; copy of lease.
If you have filed bankruptcy in the last seven years:
Copy of petition and discharge, handwritten explanation of reason
for bankruptcy.
The Loan Application
One of Aztec Mortgage's Loan Officers or other Lender representatives
will receive your application you Submitted On Line or Faxed to
us. We will begin collecting information for your loan. We will
contact you explaining the types of mortgage loans available to
you, the interest rates and fees for each type and the qualification
requirements. If you have problems filling in the application, please
call us at (505) 830-6070 and an Aztec Mortgage Loan Officer will
assist you in filling out, the loan application form.
Completing The Application Form
This loan application form asks
for information about you, your spouse and/or CO-borrowers We need
to know about your employment and your financial history to be able
to process your loan. Also, we will need information about the property
you are purchasing, including the terms of the purchase contract.
Aztec Mortgage will verify to make the loan, so it is very important
to make sure that it is complete and accurate.
You can complete the online application
in the comfort of your home. We feel this is much easier and more
accurately if you prepare at home. After all, this is where you
keep all your information. A great deal of detail will be asked
about your personal finances, including bank account numbers and
balances, current loan amounts and payments, and credit card account
numbers. You will want to be thorough and precise in your answers,
so it will be to your benefit to gather this kind of information
before filling in the application.
If you would rather Fax your Application,
you may print it, fill it in and fax it to us.
If you would like to "Schedule
An Appointment" , simply fill in the form and we will be glad
to set an appointment for you.
Loan Application Processing
After the loan application has
been completed, it will be turned over to Aztec Mortgage's loan
processing department and then to the underwriter, where the decision
to approve or reject the loan will be made. Aztec Mortgage Loan
Processors send out the Verifications of Employment and Deposit
and order the credit report, property appraisal and other documents.
Your Loan Officer will be able to give you an idea of the processing
time for your application.
Within three business days after completing
the application, Aztec Mortgage will provide you with a Good Faith
Estimate of the anticipated closing costs. This will include: origination
fees, mortgage insurance, title insurance, escrow fees and hazard
insurance. You will also receive a Truth-in-Lending Disclosure Statement.
This statement shows: the estimated monthly payment, the total cost
of all finance charges on your loan, an Annual Percentage Rate (APR).
The APR represents the dollar amount of finance charges you pay
either up front or over the life of the loan.
After Aztec Mortgage has approved
your loan, you will receive a commitment letter. This sets the terms
of the loan and the length of time for which those terms are offered.
However, if your loan does not close within the specified closing
date, the terms are subject to change. Aztec Mortgage requests you
accept the commitment by returning a signed copy to the lender within
five working days.
Interest
Rates
We have provided you the Interest
rates and fees in the Albuquerque area. Click above on Interest
Rates.
Cost of the Mortgage
The total cost of a mortgage loan
consists of origination fees, the interest rate on the loan and
discount points. One point is equal to one percent of the amount
of the loan and is usually collected at the closing of the loan.
The interest rate affects the amount of the monthly payment, while
points affect the amount of cash you must have at closing.
Rates and Fees
We will quote a rate and fee at
the time the application is taken and then will guarantee, or "lock"
the rate quote for a specified length of time. Aztec Mortgage will
make sure you understand how and when the rate and fees on the loan
are going to be set. A rate lock protects you from rising interest
rates while your loan is being processed. Lock periods may run from
10 to 60 days, with longer periods available in some cases at an
additional fee. Aztec Mortgage will make sure you understand exactly
the terms of the lock-in agreement.
Purchase Agreement/Contract
Because the property you have
selected will be the security for the loan, Aztec Mortgage will
have an Appraisal made of the property, and you need to have the
following information available:
- A complete copy of the Purchase Agreement/Sales Contract, including
any addendum's, signed by all parties, showing the full names
of the Sellers and Buyers as they will appear on the new deed,
the amount of earnest money deposit and who is responsible for
closing costs, origination fees, etc.
- If you are planning to build, a set of plans and specifications.
- A correct mailing address of the property & full legal description.
- The name of your Real Estate Agent and/or the Seller of the
property who will be assisting the appraiser in obtaining access
to your property. Please include: address and telephone number.
Information Required to Process
Your Loan
The following is a summary of the
information required for the Loan Application. Read the below carefully
to prepare the information needed to fill out the Application. You
will need documents and this will prepare you for the questions
you may need to answer.
Personal Information
An Aztec Mortgage Loan Officer will
need the social security numbers of you and your spouse (or other
CO-borrowers), age, your marital status, number of dependents and
their ages. Your current address and telephone number. You will
also be asked to furnish your current housing expenses, including
rent or mortgage payments, real estate taxes and insurance. You
will need the name and address of your landlord(s) or mortgage lender(s)
for the past two years.
Employment History and Sources
of Income
Aztec Mortgage's primary considerations
is your ability to make the regular payments on the mortgage and
to be able to afford the costs associated with owning a home. The
required information includes:
- At least two years employment history with your employer's name
and address, your job title or position, length of time on the
job, salary, bonuses, commissions and average overtime pay.
- Recent paycheck stubs and Federal W-2 forms for two years (some
may request full Federal tax returns).
- Records of dividends and interest received from investments.
- If you are self-employed, full tax returns and financial statements
for 2 years, plus a profit and loss statement for the current
year to date.
- A written explanation if there are gaps in your employment record,
because of circumstances such as illness or layoffs, or for any
other reason.
An Aztec Mortgage Loan Officer will
have you sign a Verification of Employment (VOE) form. This will
be sent to your employer to verify your employment and earnings.
We use a general authorization form which allows us to verify employment
and other financial information on your application.
If you have income from other sources,
such as rental property, social security or disability payments,
child support, etc., you must provide adequate proof of this. Appropriate
documents could include canceled checks, copies of leases, certification
of benefits, and a divorce decree.
Personal Assets
A detailed list of your personal assets
is required on the loan application form. You will need to have
the following information available to complete the form:
-
All bank accounts, both checking and savings,
and money market accounts, with the name and address of the
institution, name(s) on the accounts, account numbers and current
account balances.
- Recent bank statements for at least two months.
- Current market value of stocks, bonds, CDs and other investments.
- Vested interest in all retirement funds.
- Face amount and cash value of life insurance policies in force.
- Make, model, year and value of automobiles owned.
-
Address and market value of all real estate
owned along with the amount of rents collected, the mortgage
on the property and the monthly mortgage payments (a profit
and loss statement will be required for investment properties).
- Value of other personal property.
Your Loan Officer will have you
sign Verifications of Deposit (VOD) for each of the institutions
(or a general authorization) where you have savings or checking
accounts.
Personal Indebtedness
Your
Aztec Mortgage Loan Officer will ask you to itemize all of your
current bills, loans and other debts, including current balances
and monthly payments. You debts including automobile loans, credit
cards such as Visa, Master card and other retail store accounts,
finance company, bank and credit union loans and existing mortgages,
including home equity loans. Give the account or loan number, the
monthly payment, the number of payments remaining and the outstanding
balance.
The information you provide on the
loan application will later be verified by a credit report ordered
by Aztec Mortgage. You may obtain your own Credit
Report On Line for your own information. It is to your
advantage to take time to get your data right prior to filling out
the loan application.
If you have had credit
problems, you should inform your Aztec Mortgage Loan Officer.
We recognize that unemployment, illness, marital problems or other
financial difficulties can temporarily impair your credit rating.
Provide a written explanation of the circumstances regarding the
problem to be included with the loan application. We will consider
such a written explanation as part of the underwriting analysis.
However, If you have the problem corrected and your payments have
been made on time for a year or more, your credit will probably
be judged as satisfactory. (See
Credit Rating Information) Late payments, judgments or loan
defaults, however, severely damage your credit standing and may
prevent you from obtaining the financing you need to complete your
loan purchase.
If you have been through bankruptcy
or foreclosure proceedings within the past seven years, be prepared
to give full details and copies of applicable documents regarding
them.
Additional Information
An Aztec Mortgage Loan Officer
will ask you to sign a section of the loan application form which
contains your certification that the information you have provided
is correct to the best of your knowledge; your promise to advise
Aztec Mortgage of any material changes in your information.
The last part of the application form
requests information on your race and gender. The Federal Government
uses this data to monitor Aztec Mortgage's compliance with fair
housing and equal credit opportunity laws. Providing this information
is strictly voluntary on your part and has no effect on your loan
application. However, Aztec Mortgage is required by federal law
to request the information.
Aztec Mortgage may require additional
information or documentation regarding you or the property after
the application has been submitted for approval. Your Loan Officer
make every effort to collect all data at the outset. Requests for
additional information are not necessarily bad omens and your primary
concern should respond promptly with the information requested.
At the time Aztec Mortgage has received
your application, you may be asked to pay for the credit report
and appraisal fees. Depending upon the type of the loan. These fees
generally run around $500.
Based on your information received
on the application, your Loan Officer may be able to pre-qualify
you for the loan requested. However, you will not be approved for
the loan at this time. This is done by Aztec Mortgage's underwriters
after all your documents and information have been received and
verified.
Prequalification
Worksheet
The prequalification worksheet
is used to gather enough information to prequalify you for a mortgage
loan.
The Waiting Period
The time period between submitting the
loan application and receiving the commitment letter is one of uncertainty
and concern. Aztec Mortgage may request additional information creating
unexpected delays. Here are a few things that you and Aztec Mortgage
can do to help these problems from arising.
- Provided good documentation.
- Make sure you communicate well with the your Loan Officer.
- Be Available. The Loan Officer may need additional information
or documents during processing.
- Be Quick in your Response to your Loan Officer.
- Be Prepared to Do You Part.
We hope this information has helped
you understand the Mortgage Loan Process. Many links of information
has been provided here for your information and understanding. Please
feel free to contact us with any questions you may have! We will
be more than glad to assist you!
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