Mortgage Information Packet
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. FHA USDA VA Lake Home Construction Investment Property Conventional/Conforming and Jumbo First-Time Home Buyer 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. Step 1 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 2 Choose a Real Estate Agent Select a professional who knows the market and will listen to your needs. Ask for references from former clients. Step 3 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 4 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 5 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. 2
Step 6 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. *Refer to list of Documents Needed For Your Home Loan on following page. Note: Additional documentation may be requested during the underwriting process. Step 7 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 8 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 9 Mortgage Underwriting Your lender will review your income, assets, credit history and appraisal and if you are approved, will determine a final loan decision. This process is called underwriting. Step 10 Close the Deal Ownership of the property is transferred to you. A closing agent will coordinate and distribute all the necessary paperwork and funds. Congratulations! You re the proud owner of your new home! 3
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 Copy of the deposit receipt showing the funds deposited into bank account 4
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 If you re self-employed, other than a sole proprietor, complete copy of Corporate, S-Corporation, or Partnership tax returns for the last two (2) years, including all schedules and signed by a company officer 5
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 (such as bottled water, etc.) Other 6
Choice Financial Mortgage Loan Officers GRAND FORKS MARKET FARGO WEST FARGO MARKETS Paul Canton 701.738.4336 p.canton@choicefinancialgroup.com NMLS #686730 Brian Wiesner 701.356.9744 b.wiesner@choicefinancialgroup.com NMLS #195210 Deb Kolling 701.738.4311 d.kolling@choicefinancialgroup.com NMLS # 1027681 Kayla Koropatnicki 701.356.9724 kaylak@choicefinancialgroup.com NMLS # 986939 Bank Locations FARGO 4501 23rd Avenue South 701.356.9700 GOODRICH 123 Clark Avenue 701.884.2429 GRAFTON 645 Hill Avenue 701.352.0242 GRAND FORKS 1697 South 42nd Street 701.746.6010 GRAND FORKS 4501 S. Washington Street 701.738.4300 LANGDON 210 Eighth Avenue 701.256.2141 PETERSBURG 202 South 5th Street 701.345.8282 WALHALLA 407 12th Street 701.549.3761 WEST FARGO 210 Sheyenne Street 701.277.9258 COMFREY, MN 101 Brown Street West 507.877.2511 7
FARGO GOODRICH GRAFTON GRAND FORKS LANGDON PETERSBURG WALHALLA WEST FARGO COMFREY, MN Member FDIC Institution ID #465995 12/13 500 choicefinancialgroup.com