Summary of the Loan Process

Pre Stage: Finding a Home (Purchase Transactions Only)

Stage One: Credit Package

Mortgage Documentation Checklist” with the Loan Officer (LO). Consumer to sign, date and return to HFG the Acknowledgment of the Loan Process
Submit all requested documents to HFG
HFG to confirm the receipt of all documents, Register or Lock the loan, Order the appraisal
HFG may request additional documentation from the consumer or third parties

Stage Two: Processing

Stage Three: Underwriting

Stage Four: Closing

HFG to verify available signing times with the consumer and closing agent
HFG to request loan documents from the funding department
HFG to verify with the closing agent that the loan documents have been received and the HUD has been prepared/disclosed
LO and consumer to review and confirm the loan figures
Consumer to sign documents at or with the closing agent (LO to confirm with consumer same day)
HFG to verify funding and disbursement

Mortgage Documentation Checklist

New Home Purchase Specific Documents

Application and Disclosures

Verification of Mortgage/Rent

12 Month’s Mortgage History on the Credit Bureau Report or the Name and Phone Number of the Mortgage Company to verify the last 12 Months Rating
12 Month’s Canceled Checks for Rent or Name and Phone Number of the Landlord to verify the last 12 Months Rating (Private Party Landlord verification may not be acceptable)

Verification of Employment

Two Years Personal Tax Returns (Signed by the consumer(s))
Copies of W2’s for the last two calendar years
Most recent copies of One Month’s Pay Stub(s) with YTD Earnings
Copies of Award Letters for Other Types of Income (i.e. Social Security & Retirement)

If Self Employed

24 Month’s of Personal or Business Bank Statements
Two Years Personal & Business Tax Returns with all schedules
Letters of Reference from the company’s three oldest customers
Evidence of self employment for 24 months (i.e. Business License or Articles of Incorporation)

Verification of Assets

Most recent Two Month’s Bank Statements for All Bank Accounts (with all pages front and back)
Current Investment Account Statements (401K, IRA, Stocks, etc.)

Title, Appraisal, Survey and Home Owners Insurance

Title Report, ordered by HFG on behalf of Consumer
Appraisal Report, ordered by HFG on behalf of Consumer
Home Owners Insurance Declaration page or the name and phone number of insurance agent

If Applicable to Consumer

Property Survey
Home Owner’s Association Manager contact information
Copy of Tax Lien/Judgment release
Copy of Divorce Decree(s) for each Consumer
Evidence of student loan deferment
Complete copy of bankruptcy documents for all filings
Tax Statements, Proof of Insurance and Rental Agreements for all rental properties and/or second homes
Balance and payment info on 401K or retirement account loans
CCCS Withdrawal Letter
Complete Probate Documentation Including Warranty Deed

Helpful Hints

Purchase Loans - Leave a “move-in” window of 7 Days in case of the following:

Structural problems with the Property
Acts of God (Weather, Power Outage, etc.)
Title (24 month Chain Issues: Flipping of Properties, Vesting, Liens, Encumbrances, etc.)
Delayed Construction, Repairs or Timing Issues (Builder/Seller Issues)
Unforeseen development that prevents immediate occupancy

Credit

Do not apply for any forms of New Credit until mortgage is closed, including car loans, credit cards, furniture etc., especially “Make No Payment/Deferred Interest” type transactions
Make every credit account payment on time until closing to avoid jeopardizing loan approval
Do not Co-Sign or Co-Make for anyone on any type of credit
Do not Transfer or Consolidate balances between Credit Cards even at Zero Interest
Do not close Open Credit Card Accounts until after your loan funds, even if you pay them off

Employment