LOAN APPLICATION
Please be sure to read all information on your loan application BEFORE you sign it. Our review and due diligence is based on the information you provide in the loan application. If something is not accurate, please be sure to bring it to your Loan Officer’s attention without delay. When you sign the loan application, you are certifying that the information on the application is true and accurate!
CREDIT
DO NOT apply for additional credit OR permit any additional credit inquiries
DO NOT incur any additional debt, even if it is a zero interest offer or payments are deferred
DO NOT increase balances on revolving lines (typically, credit cards or personal lines of credit) or incur charges on a zero balance line
DO keep all debt obligations current and timely paid
DO continue payments on mortgages you are refinancing until the debt is paid-off
We will verify credit prior-to-closing, and any changes could adversely affect your loan approval. We will ask you to provide a sufficient written explanation for every inquiry that appears on their credit report over the last 12 months.
OCCUPANCY
You may elect one of 3 types of occupancy for your residential property:
Owner-Occupied/Primary Residence: You MUST occupy the property within 60 days of closing, and for at least 12 months.
Vacation Home/2nd Home: You must keep this property for your exclusive use; you cannot use it as an investment property or for any rental purposes (or income generation purposes).
Investment: You may utilize this property to generate rental income.
Occupancy misrepresentation is fraud! Be prepared for significant scrutiny for transactions where the occupancy is either owner-occupied or 2nd home. We will ask you for a sufficient written explanation for any address discrepancies observed by us.
EMPLOYMENT & INCOME
We understand that employment opportunities (or challenges) may arise during the course of your residential mortgage transaction. It is very important for you to have an honest discussion with us about these opportunities or challenges as they arise. While we are able to work with you in a variety of situations, we CANNOT work with you if you fail to disclose changes to us! Remember, we do need to know even if you get a better position with more income!
We do verify your income by obtaining a copy of your last 2 years of tax transcripts and/or W-2s directly from the IRS. You authorize us to do this by signing IRS Form 4506-T. We also verify your employment by communicating with an appropriate, authorized representative of your employer. In many instances, this representative may NOT be your direct supervisor; instead, we may speak with a representative in Human Resources. Some employers outsource this process to a third-party; so, we may communicate with a third-party service that verifies your employment on behalf of your employer.
ASSETS
Just as with all information on your application, you should accurately state the source of any funds you may need to close your residential mortgage transaction. We are required to ensure that funds are from an acceptable source and verify these funds with specific documentation, including documenting where the funds came from and where the funds go. Therefore, please be sure to discuss your source of down payment, closing costs, etc. with your Loan Officer. If the source of funds changes, you MUST inform us in a timely manner.
Similarly, in some transactions, we may require you to maintain certain cash reserves (i.e., have a certain amount of money in your bank account over and above the funds needed to close on the transaction). This too is subject to sourcing and verification.
