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:
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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.
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Recent bank statements for at least two months.
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Current market value of stocks, bonds, CDs and other investments.
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Vested interest in all retirement funds.
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Face amount and cash value of life insurance policies in force.
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Make, model, year and value of automobiles owned.
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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).
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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.
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Provided good documentation.
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Make sure you communicate well with the your Loan Officer.
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Be Available. The Loan Officer may need additional information or documents during processing.
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Be Quick in your Response to your Loan Officer.
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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! |
