Whether you are in the market for a new home, or thinking of refinancing an existing mortgage, these pages are provided to briefly explain how to go about obtaining a mortgage and the necessary requirements and processes to bring it to closure.

Shopping for a Loan that meets your particular needs is not an easy job, but it is an inescapable part of the process of securing a new mortgage.. Your challenge is to decide loan terms that are most favorable to your situation, then to find a mortgage lender who offers the most advantageous terms and services for that type of loan. This is when a Mortgage Broker can become your best partner and resource. With years of experience and expertise at matching buyers with lenders, we know how to find the mortgage you want with the best terms for your situation. Once you've decided to let us help, the next step is to begin the loan application process.. The following documentation will be needed at this time:

• Purchase contract if mortgage is for a new purchase - Refinance requires copy of owner Title Insurance, Warranty Deed, Survey, and Insurance
• Copies of your bank statements for the most recent three months.
• Two year employment history; copies of W-2 for 2 years; most recent pay stubs for 1 month period.
• Information about debts, including loan and credit card numbers, names and addresses of creditors
• 2 year history of residence - mortgage/landlord information (account numbers, loan balance, monthly payment).

Loan Qualification is the next step. Using data from the documentation above, your loan officer must first make sure you qualify for the loan you are applying for. Lenders traditionally require that your monthly mortgage payment (including taxes, insurance and condominium fee, if any) not exceed 28 percent of your gross monthly income, and that your monthly mortgage payment plus existing debt payments not exceed 36 percent of your gross monthly income. To speed the prequalification process, and help you identify your qualification status, we have provided a prequalification questionnaire for your use. You may access the questionnaire by clicking on this highlighted text, complete it on-line and electronically submit it for our review, assessment, and response. If you prefer, you may print a copy, complete the form, and mail or FAX it to us for review. Once we have reviewed your data and prequalified you for the requested amount, we will immediately contact you to begin the formal loan application process. The prequalification questionnaire is also accessible from our home page.

The Loan Application is designed to provide information the lender needs to evaluate the risk involved in lending you money - the likelihood that you will or will not repay the loan. Lenders are looking for what they refer to as the "four Cs of credit" - capacity, credit history, capital, and collateral. In simple terms, these are defined as follows:

• Capacity: Can you repay the debt? Lenders ask for employment information: your occupation, how long you have worked, and how much you earn. They also want to know your expenses: how many dependents you have, whether you pay alimony or child support, and the amount of our other obligations.

• Credit History: Will you repay the debt? Lenders look at your credit history: how much you owe, how often you borrow, whether you pay bills on time, and whether you live within your means. They also look at signs of stability: how long you have lived at your present address, and how long you have worked at your present job.
• Capital: Do you have enough cash for the down payment and for closing costs? Do you need a gift from a relative? Will you have a cushion after your home purchase, or will you spend your last penny at settlement?
• Collateral: Will the lender be fully protected if you fail to repay the loan? Lenders must be sure the property you are buying is sufficient to back up your loan.

Once you have signed the loan application, it is up to us, your Mortgage Broker to select a lender which offers the best program that matches your specific needs. .

Locking in the current rate: If you are concerned that interest rates may rise during the time the loan is being processed, the lender may agree to lock in the current rate (and number of points) for a given period. We will assist you to insure the best time to lock in your rates.

Estimates of Closing Costs are provided to you in writing by the lender within three days of your application. This is an itemized estimate of the costs to settle (or close) the loan. See our discussion on Estimated Closing Costs  (also available as a selection from the home page).

Processing the Loan: In processing your loan application, the lender primarily will be interested in two things:

• the property you plan to finance (since it serves as collateral for the loan), and
• your financial situation and your credit history (since they will determine your ability and your desire to repay the loan).

The following are elements of the process which support the above requirements:

• Property Appraisal: We will arrange on behalf of the lender to have the property appraised, a service for which you will be charged at the time of application.
• Credit Report: On behalf of the lender we will order a credit report on you and your spouse or any other co-purchasers. This too will be charged to you at the time of application.
• Verification of information provided on your application will be performed (employment history, checking and savings accounts, etc.)

Commitment Letter: When your loan is approved, the lender will send a commitment letter. It will state the loan amount, the term of the loan, the loan origination fee, the points, the APR, and the PITI (monthly principal and Interest, taxes, and insurance).

The Mortgage Loan Closing (or Settlement") is the meeting in which the loan is finalized and your mortgage is issued. Rather than dragging your through the itemized considerations for closing, let it suffice to say that we can explain the process, outline all the options, and guide you smoothly to conclusion.