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simple New York mortgage form and we will be happy to assist
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 Mortgage Loan Process.
Congratulations! You are taking steps to achieve
the American Dream of owning your own home. The mortgage process
is a series of steps that allows the lender to make an intelligent
decision about lending their funds to you. These steps consist of
: Interviewing and qualification, processing, underwriting, and
closing. The total time frame from the application to funding will
vary depending on the mortgage program. Typically, you will have
your loan within approximately 3-5 weeks. Your Heartland Mortgage
loan representative is responsible for following the loan from the
beginning of the application through the funding of the loan.
Step # 1 Applying:
During the interview, your Heartland Mortgage representative will
begin by going through some preliminary qualifications with you
that will allow him or her to determine your loan needs. Your loan
officer will consult with you, answer your questions, and guide
you toward your financial objective - to find the best loan to
suit your needs. After your preliminary qualification, a loan
application is filled out which provides details about you and
your financial position along with information about the subject
property. Along with your application, you may be asked to provide
other supporting documentation. This information includes such
documents as : W-2s, tax returns, current pay stubs, and bank
statements. It is crucial that you give accurate and truthful
information through out the whole process. This will speed your
application along and help eliminate the chance of any unexpected
“ surprises” that could cause a delay or keep you from getting
your mortgage loan. In addition, your loan representative will
provide you with a Good Faith Estimate of the settlement charges
associated with closing your loan.
Step # 2 Processing:
During processing, your loan file is examined to ensure that all
information is complete and accurate. Our processing staff will
enter your information into an automated underwriting system which
enables us to instantly receive an answer on your mortgage minutes
after the data is entered into our system. Verifications,
appraisals, and other necessary documents will be ordered at this
time. The goal during processing is to gather accurate facts that
can later be used for making the final decision about your
mortgage loan.
Step # 3 Underwriting:
Underwriting involves the evaluation of all the documents that
make up the file to determine if the loan should be approved or
denied, based on the factual information presented.
Your loan will be reviewed by an underwriter in terms of four
important factors: collateral, capacity, character, and capital.
Collateral: This refers to evaluating an estimate of the
property’s value and the property’s physical condition, which
provides a basis for the lender to establish the maximum loan
amount that the property can secure.
Capacity: This refers to the financial resources you have
available for the down payment and your ability to make the
monthly housing payments.
Character: This is based on the information from your credit
report which provides a history of credit performance regarding
payments. This acts as a measurement of your motivation to make
monthly mortgage payments. If you have a history of bad credit, it
is not a basis for denial. Your loan representative will make you
aware of any problems and can offer you possible solutions.
Remember to be “up-front” to eliminate delays !
Capital: This refers to the liquid assets which you have available
for the down payment of your loan (if necessary) and to meet
closing costs.
After all underwriting factors have been carefully evaluated, the
underwriter will make a decision to approve or deny the loan you
have requested. If approved, the loan package is signed, dated,
and sent off for closing. Your loan representative will inform you
of the decision and confirm it with a written loan commitment. If
your loan is denied, you will be informed in writing.
Step # 4 Closing
This is the final step to obtaining your mortgage loan. After your
loan is approved, closing documents are prepared, assembled,
signed and recorded. Your mortgage is now created and funds will
be disbursed. The title of the property passes from the seller to
the buyer. At the same time, you will be making a legal obligation
to repay the debt secured by the mortgage.
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