THANK YOU FOR CHOOSING CAPITAL ONE BANK

Transcription

1 KNOW ALL THE STEPS

2 THANK YOU FOR CHOOSING CAPITAL ONE BANK WE RE HAPPY THAT YOU VE COME TO US FOR YOUR HOME LOAN NEEDS, AND WE LOOK FORWARD TO MAKING THE APPLICATION PROCESS AS CLEAR AS POSSIBLE. THIS EASY-TO-FOLLOW MORTGAGE GUIDE WILL TAKE YOU THROUGH EACH AND EVERY STEP, SO YOU LL KNOW WHAT TO EXPECT FROM US, AND WHAT WE LL EXPECT FROM YOU. WE HELP MAKE IT CLEAR AS A BELL

3 WHAT HAPPENS NOW In the next hours, your Mortgage Consultant will call you to talk about loan rate and term options. As we move forward, it may be helpful to familiarize yourself with the following: FIXED RATE: If you choose a mortgage with a fixed rate, the interest rate is set. Your A GOOD PLAN IS A GREAT THING HERE S AN OVERVIEW OF HOW WE CAN WORK TOGETHER, AND APART, TO HELP THINGS RUN MORE SMOOTHLY. A MORE DETAILED EXPLANATION IS INCLUDED IN THE INSERT HOW IT WORKS. 1. COMPLETE APPLICATION AND LOCK RATE US YOU principal and interest payment will stay the same throughout the life of your loan. ADJUSTABLE RATE: If you choose an adjustable-rate mortgage, the interest rate may change. Your rate will stay fixed for a certain period of time (usually 5-10 years) and may adjust annually thereafter based on a market index to which the rate is tied. This will affect your interest payment. CLOSING COSTS: These include lender and third-party fees associated with originating the loan, including title preparation fees, appraisals, etc. that are paid at the time of closing. Ask your Mortgage Consultant for more details. ESCROW: This is the account that holds your contributions for taxes and insurance. Your Mortgage Consultant can explain this in more detail. Call to complete an application in the next 1-2 days (if you haven t already submitted an application). Begin to review your application. Present you with rate and term options. 2. LOAN APPROVAL PROCESS US Request validation documentation from you. Provide appraiser with your contact information and schedule a tentative date. Begin to gather income and asset documents. Make choices and commit to proceed with chosen terms. YOU Provide income and asset documents to us. If refinancing, schedule appraisal with appraiser; realtor will schedule appraisal for a new mortgage. INSIDE THIS GUIDE It s our goal to make the process easier for you. That s why the enclosed sheets detail how every step in the process works, what you ll need to keep the process running smoothly, how we make our decision, and other important things you should know. 3. CLOSE US Assemble the closing documentation. Provide documentation and fund your loan. YOU Respond to any outstanding items. Attend closing meeting and sign documents.

4 HOW IT WORKS The more you know about your loan process, the easier it is to go from one step to the next. This chart details the roles we each play, so there won t be any surprises along the way. STEPS 1. COMPLETE APPLICATION WHAT WE DO Call to complete an application in the next 1-2 days (if you haven t already submitted an application). Work with you to determine the best mortgage for your needs. Review your application and discuss fees associated with it. WHAT YOU DO Provide information requested by your Mortgage Consultant. Work with your Mortgage Consultant to select product. Begin to gather income and asset documents. Pay application fee, if applicable. 2. PRELIMINARY EVALUATION, LOCK RATE Pull credit report. Present you with initial loan assessment. Discuss rate options. Commit to proceed and lock rate. 3. GATHER ADDITIONAL INFORMATION Send you a loan kit with a series of disclosure documents for you to sign. Request proof of income and asset information. Provide a Good Faith Estimate. Review loan kit and submit requested documents as instructed by your Mortgage Consultant. Review your Good Faith Estimate and agree to proceed. 4. APPRAISAL Provide appraiser with your contact information and schedule a tentative date. If refinancing, schedule appraisal with appraiser; realtor will schedule appraisal for a new mortgage. 5. PREP FOR CLOSING Schedule closing date. Prepare all loan documents. Coordinate with settlement agents, titling attorney, and any third parties. Respond promptly to any outstanding items. Get a cashier s check to cover closing costs. 6. CLOSING Provide documentation and fund loan. Attend and sign documents. If you have any questions, just give your Mortgage Consultant a call. LEND-5032 REV. 7/12 NMLS ID

5 WHAT YOU LL NEED While we re doing our part, you can do yours. Use this checklist to gather the paperwork you ll need to keep the process running smoothly. We ll give you a call and request these documents when we need them. If you have any questions along the way, give your Mortgage Consultant a call. YOUR MOST RECENT PAYCHECK STUB(S) THAT SHOWS AT LEAST 30 DAYS OF YEAR-TO-DATE INCOME. A COPY OF YOUR MOST RECENT TAX RETURN. A COPY OF YOUR W-2 FORMS FOR THE PAST 2 YEARS, PLUS ANY OF THE FOLLOWING YOU PLAN TO RELY ON TO QUALIFY FOR THIS LOAN: Are you self-employed? If so, we ll need your last two years of tax returns, including all schedules. Do you receive alimony payments? If you wish for such income to be considered, please provide your divorce decree and proof of receipt of alimony. Please note that you are not required to disclose alimony, child support or separate maintenance income unless you wish for these to be considered as a basis for repayment. Do you receive social security? If so, please provide a copy of your most recent social security award letter. Are you retired? If so, please provide a copy of your most recent benefits statement. Do you own rental property? If so, please provide a copy of a current lease, or prior year s tax return detailing your rental income. THE PAST TWO MONTHS OF STATEMENTS FOR: CHECKING, SAVINGS, RETIREMENT, BROKERAGE, OR MUTUAL FUND ACCOUNTS. IF YOU RE REFINANCING, WE LL NEED THE FOLLOWING: A current mortgage statement or coupon (including your account number or loan number, and the lender s phone number). The following documents associated with your current mortgage (if not included on your mortgage statement): Prior year s property-tax bill, if applicable. Homeowners association dues statement, if applicable. Homeowners insurance premiums statement. A statement for any existing home equity loan or line of credit. A current statement for any other loan(s) against your home s value. A copy of your homeowners insurance declaration statement indicating the coverage on your home. If you live in a flood zone, please include your flood insurance declarations page. Your insurance agent s name and phone number. NOTE: IF AGREEING TO CASH-OUT REFINANCING, WE LL ALSO NEED A LETTER DETAILING THE INTENDED USE OF FUNDS.* If you have any questions, just give your Mortgage Consultant a call. *Not available in all areas. Check with your local branch bank representative. LEND-5032 REV. 7/12 NMLS ID

6 HOW WE DECIDE First of all, this is not a decision we take lightly. Remember, all loans are subject to credit approval. We take all of your information into account. And while there are many factors that go into our decision, three pieces of information play a key role in the outcome: 1. YOUR CREDIT HISTORY We ll look at your past loans and credit accounts, and we ll check your credit rating through a reputable credit bureau. Keep in mind, it s important for you to check your credit report at regular intervals to make sure the information is accurate. 2. YOUR CURRENT DEBT COMMITMENTS We ll add up all your monthly debt obligations (including credit cards, auto loans, lines of credit, child support, etc.). Then, we ll compare this total to your current gross income level. We ll calculate a ratio by taking your debt amount and dividing it by the monthly gross income you report on your taxes (important to note if you re self-employed). We refer to this as a debt-to-income ratio. Once we know yours, we ll then add on any monthly payments from your proposed new loan. This will give us your projected debt commitments. Debt-to-Income Ratio Example: Jane has a monthly income of $6,000 and monthly debts that total $2,000. Her debt-to-income ratio is $2,000 $6,000 = 33%. 3. YOUR EQUITY IN AND THE VALUE OF YOUR HOME We ll assess the value of your home using a home appraiser. We rely on independent appraisers to assess the fair market value of your home. By law, appraisers can have no monetary ties or personal relationships with any bank they support. The appraisal is then used to calculate a loan-to-value ratio. This is the loan amount you re requesting in relation to the amount at which the home has been appraised. Capital One Bank sets a maximum loan-to-value ratio on our real estate loans that varies based on type of loan and your geographic location; your Mortgage Consultant will help you to find the right loan terms to meet your needs. Loan-to-Value Ratio Example: Bob has a $200,000 mortgage on his home, which is valued at $350,000. His loan-to-value ratio for his refinance is $200,000 $350,000 = 57%. If you have any questions, just give your Mortgage Consultant a call. LEND-5032 REV. 7/12 NMLS ID

7 WHAT ELSE YOU SHOULD KNOW Throughout the process, some questions may arise. Addressing them now could make things go faster and easier. Below are some important things you may want to discuss with your Mortgage Consultant if they apply to you. IF YOU RE REFINANCING HAVE YOU HAD OTHER LIENS AGAINST YOUR HOME? Check with your current lender to make sure any loans you ve paid off have been officially closed. DO YOU CURRENTLY HAVE ANY LIENS AGAINST YOUR HOME BESIDES A FIRST MORTGAGE? Make sure your lenders give us permission to subordinate their lien. HAS YOUR HOME BEEN APPRAISED RECENTLY? Be aware that your appraisal value may have changed since your last appraisal. ARE THERE ANY ADDITIONAL NAMES ON THE TITLE OF THE PROPERTY? If so, they must be at closing to sign the deed. DO YOU LIVE IN A FLOOD ZONE? You must insure any permanent structure on the property that has two or more walls, a fully secured roof, and has a foundation (e.g., a shed). IF YOU RE BUYING A HOME WILL THERE BE ANY ADDITIONAL NAMES ON THE TITLE OF THE PROPERTY? If so, they must be at closing to sign the deed. DO YOU LIVE IN A FLOOD ZONE? You must insure any permanent structure on the property that has two or more walls, a fully secured roof, and has a foundation (e.g., a shed). If you have any questions, just give your Mortgage Consultant a call. LEND-5032 REV. 7/12 NMLS ID

8 Products and services are offered by Capital One, N.A., NMLS ID , Member FDIC Capital One. All rights reserved. LEND-5032 REV. 7/12