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Apply For A Loan
Processing the Loan Application
To "process" a loan is to make sure that all of the required documentation has been obtained and all
the conditions stated in the preliminary approval have been met.
- Good Faith Estimate of settlement costs
is the legal format in which a New Jersey mortgage lender
has to disclose all the fees and charges associated with
getting your New Jersey
home mortgage loan or your New
Jersey refinance mortgage loan. An estimate of any
mortgage insurance costs to be paid by you at closing is
also included on this statement.
- Truth in lending disclosure is the legal
format in which a New
Jersey mortgage lender must describe your loan in
detail including the interest rate, annual percentage rate,
and any other features that may apply.
- A Property Appraisal is a report written by a licensed appraiser who visits the property to measure
it, draw a simple floor plan and take photos. The appraiser also compares the property to other recently sold properties
in the area to determine "fair market value."
- Title Report (or Title Search) tells the
New Jersey mortgage
lender who owns the property and what — if
any — liens there are against it that must be paid
prior to funding your loan. The title report will also include
information about any easements or other rights that apply
to the property.
The Credit Decision -- Final Approval
An underwriter will review and analyze the
processed New Jersey mortgage
loan package and either approve, deny or suspend your
application. If mortgage insurance is required for your loan,
the underwriter will also submit the loan package to a mortgage
insurance company for review.
In reaching a decision on your application for a mortgage, NJ underwriters will take into consideration
your income, credit, cash reserves and the property itself.
- Housing Expense Ratio is the percentage of your gross monthly income it takes to make your house
payment, including taxes and insurance. If you earn $3,600 and your house expense is $1,200, you have a 33% housing
ratio (1,200 is one third of 3,600).
- Total Expense Ratio is the percentage of your gross monthly income it takes to pay your house payment
plus other monthly payments you make, such as car payments, credit card debt and student loans.
- Cash Reserves is the money you have left
in the bank after your New
Jersey mortgage loan or New
Jersey refinance mortgage loan closes. Cash in the
bank is very important in case you run into unforeseen circumstances.
Usually, two months worth of house payments are required.
- Credit History is the timeliness with which you've paid your bills in the past. Underwriters will
generally focus on the last two years.
- Loan-to-Value (LTV) Simply put, if you have a house valued at $100,000 with a $90,000 loan you have
a 90% loan-to-value ($90,000 divided by $100,000 = 90%).
The underwriting process usually takes two
days or less to complete. Call a New Jersey mortgage banker
at Sunquest Funding today to begin the process of filling
out your NJ mortgage application so you can be pre-approved
before you find a property to buy! Funding Your Loan
The satisfying conclusion to the process of getting a New Jersey home mortgage loan is called
the "settlement" or "closing" because that's when everybody "settles up" and "closes" all the loose ends.
While at settlement of your New
Jersey home mortgage or New
Jersey mortgage refinancing, you will read and sign
numerous documents relative to the purchase (or refinance)
of your property. Your Sunquest Funding New Jersey mortgage
banker or attorney can answer any questions you may have
regarding these documents. Most settlements, or closings,
take about an hour or less to complete depending on the complexity
of the transaction and if all documents are in order. That's
why it's so imperative to engage the help of a professional
New Jersey mortgage banker at Sunquest Funding you
don't want any surprises at the closing table!
Congratulations! You now have a comprehensive
understanding of the entire process of applying for a New
Jersey home mortgage. The professional and dedicated
staff at Sunquest Funding requests the honor of serving you
in obtaining the best possible financial arrangement for you
and your family.
Remember … at Sunquest Funding, we will remove the mystery from the home financing process.
Call today for more information and receive a call back within one business day!
Call
Toll Free
800-379-1829
Click
here
for more information about applying for a loan
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