An Overview of the Loan Process

This can seem like a daunting task, but at A Good Lender we do most of the heavy lifting for you, so you can concentrate on what’s important — preparing to move into your new home, saving money, or making plans for your home equity check.
There are four main steps involved in getting a loan. You’ll see that we’ve made your part in them as easy as possible, and we do all the work! That’s what we’re here for.

Step one: determine how much you can borrow

This is a function of a couple things. How much of a monthly payment can you afford? And given your unique credit and employment history, income and debt, and goals, how much will a lender loan you? The first part you can get a rough idea of by using the calculators on our website. We’ll also help you through different scenarios by asking a few simple questions. Based on standard lender guidelines, we’ll get you a good idea of what kind of terms and loan program you can expect to benefit most from.

Step two: pre-qualify for your loan

This is where the rubber meets the road and you save the most money. You supply information about your employment, your assets, your residence history, and so on. We get your permission to run your credit score. When we review all this information we give you a Pre-Qualification Letter. Handle it with care — to a home seller, it’s like a suitcase full of cash! Your realty agent will use your Pre-Qual (as they may call it) to make the best offer on the home you choose, and the seller knows you’re pre-qualified. It gives you buying clout! And while you’re picking out the home that’s right for you, we’re busy finding the loan that’s right for you.

Step three: apply now! We make it easy

Once you’ve made an offer and it’s been accepted, it’s time to complete the loan application. It couldn’t be easier, and you can do it online, right here at our website. When the time is right, we’ll order an appraisal of your new home.

Step four: your loan is funded

Your realty agent and the seller’s will work together to designate an escrow/title company to handle the funding of your loan once it’s approved. We’ll coordinate with the escrow company to make sure all the papers your lender will need are in order, and you’ll sign everything at the escrow/title company’s office.

You’ve answered a few questions, given us some detailed information, applied online, and next thing you know, you’re moving in! We’re in the business of mortgage loans, you’re not… so we do most of the work. Doesn’t that make sense?

What information will be needed for the application (and how it’s kept private)

Anything you submit over our website is 100 percent, fully secure. And we never, ever share it with anyone except by permission — that is, if you’re giving us information you want us to use to get you the best loan, we use that information to tell mortgage lenders about you and convince them to loan you money. In turn, those mortgage lenders are bound by federal law to keep your information secure.

Here is a list of the information mortgage lenders will use to consider your loan application.

For all loans

Social Security Number, for borrower and co-borrower if any
Copy of Social Security Card and Drivers License

Employment History

For the last two years, employment dates, addresses, salary.
Current pay stubs, 2 years W-2 forms, 2 years 1040s.

Check and Savings Accounts and Certificates of Deposit
Location of bank accounts, account numbers and balances;
Address of bank if out of town
Last 2 months’ statements

Stocks, Bonds, and Investment Accounts
Broker’s name and address, description of stocks, bonds, etc.
Last 2 months’ statements or copies of stock certificates

Retirement Plan
Approximate vested interest value
Copy of latest statement

Automobiles
Make and model of automobiles, their resale value

Other Assets
Market value of personal and household property

Liabilities and Other Non-Mortgage Debt
Creditors names, addresses, account numbers
Monthly payments and balances

Other income information you may need

If you’re self-employed
Two years tax returns, profit and loss statements, both company and personal if separate.
Current balance sheet and profit and loss statement if more than two months into the new fiscal year, signed by CPA.

If you have income from:

Commission
Overtime
Bonus
Partnership
Rental Property
Trust
Notes Receivable
Interest/Dividends
You’ll need two years’ personal federal tax returns

If employed in family business

Personal federal income tax returns and all schedules for the past two years

If divorced or separated

Complete executed divorce decree and settlement agreement
Payment history of alimony/child support over the past 12 months, if it is a financial obligation.
If you choose to have this be considered as part of your income (you don’t have to), be prepared to provide 12 months canceled checks or bank statements reflecting income deposits.

If you own real estate

Name and address of all mortgage lenders for the past 24 months, account numbers, monthly payments and balances

If you’ve sold your home but not closed:

A copy of the sales contract

If you’ve sold your home, closed, and you will use the proceeds for your new down payment:
A copy of the HUD-1 Uniform Settlement Statement

If you rent

Name, address and phone number of landlords for the past 24 months

If you’re buying a home

Purchase sales contract or offer to purchase and all addenda
Furnish contract with original signatures of buyer and seller

If a source of your down payment is a gift:

Name, address and relationship of donor.
Gift funds will be verified in both the donor and recipient’s accounts.
Note: Not all loan programs allow gifts to be part of your down payment.

For Construction/Perm Loan

Signed construction with cost breakdown, builder plan and specifications