(651) 552-3681

 
Serving Minneapolis / St. Paul.  All of Minnesota and Wisconsin

Choose Us, Your Minnesota Mortgage and Loan Specialists!

As soon as the sales contract is signed, obtaining the financing for the purchase becomes paramount for all but a very few buyers. 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.

Our application process is not as complicated as other lenders make it out to be. With 'Loan Prospector ©' and 'Desktop Underwriting ©', an application is all we usually need to begin the process. These new computerized underwriting programs review your information electronically, allowing for answers in 24 hours or less. Once we have your approval, we will tell you what documents that you have to provide. You may be surprised at how little documentation may be required.

Typical requirements are:

1. If you are salaried: provide two years W-2 and one month of current paystubs OR if you are self-employed: provide two years tax returns and a YTD profit and loss statement.

2. If you wish to speed up the approval process, please also provide three months bank statements for each bank, stock and mutual fund account.

3. Provide recent copies of any stock brokerage or IRA/401K accounts that you may have.

4. Provide copy of divorce decree and bankruptcy papers (if applicable).

The Loan Interview

We will explain the types of mortgage loans available to you, the interest rates and fees for each type and the qualification requirements, complete the required application and disclosure forms, and collected the required documentation.

Completing The Loan Application Form

The loan application form asks for information on the property you are buying, terms of the purchase contract and the employment and financial history of all loan applicants, including your spouse and/or other co-borrowers. The lender will verify this information, so it is very important to make sure that it is complete and accurate.

You can complete the loan application process much more easily and accurately if you prepare for it ahead of time. 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 assemble this kind of information before the meeting with the loan officer. The following is a summary of the major kinds of information required on the loan application, the documents that may be needed and the questions that you should be prepared to answer.

Details of Purchase Contract and the Property

Because the property is security for the loan, you will have to have an appraisal made of the property, and you need to have the following information available:

• A complete copy of the 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 the house is to be built, or is still under construction, a set of plans and specifications.

• The complete mailing address of the property, its age and its full legal description.

• Name, address and telephone number of the real estate agent and/or the seller of the property who will assist the appraiser in obtaining access to the property.

All of this information should be in the purchase contract.

Personal Information

Your loan officer will want the social security numbers of you and your spouse (or other co-borrowers), age, number of years of schooling, your marital status, number and ages of dependents and your current address and telephone number. If you have lived at your current address less than 2 years, be prepared to furnish former addresses for up to two FULL years. You will also be asked to detail your current housing expenses, including rent or mortgage payments, real estate taxes and insurance (your mortgage payment may include tax and insurance funds). 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

Your ability to make the regular payments on the mortgage and to afford the costs associated with owning a home are primary considerations is the lender's loan approval process and should be your primary concern. Required information includes:

• At least two years employment history with 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 the past two years.

• 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.

The loan officer may have you sign a Verification of Employment (VOE) form. This will be sent to your employer to verify your employment and earnings. One will be sent to previous employers if you have been on the job less than two years. Many lenders now use a general authorization form which allows them to verify employment and other financial information on the application.

If you are relying on income from other sources, such as rental property, social security or disability payments, child support, etc., you must provide adequate proof of the source. Appropriate documents could include canceled checks, copies of leases, certification of benefits, divorce decrees and similar evidence. If you are using child support for income, you will be required to PROVE that you are actually receiving it.

Personal Assets

A detailed listing 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 may be required for investment properties).

• Value of other personal property such as furniture.

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Joe Metzler, MMS Certified Minnesota Mortgage Specialist 33 Wentworth Ave East West Saint Paul, MN 55118 Phone (651) 552-3681 Map Fax (651) 994-6425

Equal Housing Lender - Our services available only for properties located in Minnesota and Wisconsin. PLEASE DO NOT KEEP US A SECRET from your FRIENDS. Licensed as Mortgages Unlimited, Inc. As a Lenders One partner, we are part of the 9th Largest Retail Mortgage Originators in the country.  Any use or duplication of any materials is  strictly prohibited.  All images, text, and materials Copyright © 1998-2009. Metzler Enterprises, LLC. All Rights Reserved