A mortgage loan originator will be the first person you will need to talk to help guide you through the loan approval process. The originator or Mortgage Loan Originator at one time was called a "Loan Officer" this term is no longer used because a "Mortgage Loan Originator" is a legal distinction of who can legally take your mortgage application. To be sure that the Mortgage Loan Originator is licensed you should ask for their NMLS number. This number is given to an individual that has taken and has passed all courses and exams necessary and has had a background check done to qualify for the "Mortgage Loan Originator" license. The license is renewable every year. If the person you're talking to doesn't have a NMLS number DO NOT share your personal info with them!
Once you have determined that you are talking to a licensed "Mortgage Loan Originator" together you will start the loan application process. When answering the Originator's questions it's important to be as accurate as possible with your answers. For example, when the Originator asks how long you've been on the job and you say two years and it's only been 1 1/2 years or 1 year 11 months, this may cause a delay on your file because it is required that we have a two year history of employment to determine job stability. You don't necessarily have to be on the same job but we must have a two year history. In the case where you have attended school during the most recent two years and your degree is in the field that you are currently working in this will count as time on the job.
Once the application has been filled out completely, the Originator will know the documents that will be required to process your loan for approval. The typical documents required from an applicant will be the following, but not limited to.
- W2'S for the last two calendar years
- Last 30 days of pay stubs
- Last two months of bank statements
- Most recent retirement account statement
- If self employed or have rental home, the last two years of tax returns will be required including all schedules.
- If you are recently divorced you may be required to supply your divorce decree or a friend of the court letter to determine how much you receive or pay out in child support.
We will also need to pull a credit report to determine how you've managed your credit and the debt load that you are currently carrying. (We will at a future date go over all the facets of a credit report, how to read it and how it will affect your ability to obtain a loan approval).
Once all documents have been reviewed credit, income and assets, we will then be able to determine the best type of financing for your individual needs as well as the maximum mortgage amount that you are approved for. Once you have been approved we can get you out shopping for a home with the confidence that you are approved for your financing.
In the future I will be sharing things like how to maximize your credit score, how much money will I need to buy, what are my closing costs what's the difference between a pre qualification and a pre approval, what type of loan will require the least amount of money out of pocket to buy and how long does the loan process typically take.
Stay tuned and we'll get you ready to buy.
If you have any specific questions please send them our way and we'll get back to you promptly
Please call or email us for your personal consultation
Daniel D Gadwa NLMS# 132170
President, Concord Mortgage, Inc