Loans

Pre-Qualification

This important step may assist you in negotiating your purchase contract. We’ll gather some information regarding income and debts to determine how high your monthly mortgage payments can be and how much cash you will need at closing. During this process, your Jarrettsville Federal loan officer will explain available mortgage products and assist you in choosing the program that best suits your financial needs.

Loan Application

Jarrettsville Federal loan officer will assist you with the completion of the loan application, which is always easier and more accurate if you prepare ahead of time. A great deal of detail will be asked and documented about your personal finances. The quicker you respond to these requests, the faster your loan process will be. Please click here for a list of required items. 

Loan Verification

Your ability to make the regular payments on the mortgage and to afford the costs associated with owning a home are primary considerations during the loan approval process.

The following items must be verified in detail:

• Employment History

In addition to one month paystubs, at least two years’ employment history is needed, including: employer’s name and address, your job title or position, length of time, salary, bonuses, commissions, average overtime pay, and federal W-2 forms (full federal tax returns will be required).

If you are self-employed, two years of full tax returns and financial statements plus a profit and loss statement for the current year to date will be required. If you rely on income from other sources such as rental property, social security or disability payments, or child support, you must provide adequate proof of the source.

• Personal Assets

At a minimum, the following information must be available: all bank accounts, checking and savings, money market accounts and brokerage accounts with the name of the institution, names on the accounts, account numbers and current account balances, recent bank statements for at least two months, current value of stocks, bonds, CDs and other investments including vested interest in all retirement funds. Gift funds from a relative, employer or nonprofit organization may sometimes be used but must be verified in writing using required documentation.

• Personal Liabilities

Please itemize all of your current bills, loans and other debts, including credit balances and monthly payments. Debts include automobile loans, credit cards such as Visa, MasterCard and other retail store accounts, finance companies, credit union loans, existing mortgage loans including home equity loans, personal notes or other obligations.

• Credit

The information you provide on the loan application will be verified by a credit report. Because differences between the two will raise questions and may delay loan approval, it is to your advantage to take time to provide accurate data. Any prior credit problems or employment lapses should be discussed so that we may work with you in the early stages of your application. If you have been through a bankruptcy or foreclosure proceedings within the past seven years, please be prepared to give full details and copies of applicable documents.

• Previous Rental or Mortgage History

Please provide the information requested by your loan officer including your landlord’s name and address, phone number and possibly cancelled checks.

• Additional Information

You will be asked to certify that the information you have provided is correct to the best of your knowledge, your promise to advise the lender of any material changes in the information, and your consent to (1) verification of the application data (2) submission of the account history to credit reporting agencies and (3) transfer of the loan or servicing to successors to the original lender.

The last part of the application requests information on the applicant’s race, ethnicity and gender, which is used by the Federal Government to monitor lenders’ compliance with fair housing and ECOA laws. Providing this information is strictly voluntary on your part and has no effect on your loan application; however, we are required by federal law to request it.

Loan Estimate

Within three business days after your application is completed, Jarrettsville Federal will provide a Loan Estimate (LE) of your anticipated closing costs, settlement charges, loan terms, estimated monthly payment and the total of all finance charges on your loan, stated as an annual percentage rate (APR).

Appraisal

Because the property is security for the loan, Jarrettsville Federal will order an appraisal on your property and comply with the Appraisal Independence Requirements. This regulation requires strict adherence to appraisal independence safeguards and standards. You are entitled to receive a copy of your property appraisal report no later than three business days prior to closing of your mortgage loan transaction. You will sign a disclosure form at the time of application outlining the two options regarding timing of receipt of the appraisal report. The appraisal is typically ordered shortly after your application and you will be charged the fee for this service if the appraisal cost has been incurred.

Loan Processing and Underwriting

Your complete application will be turned over to the loan processor, who will validate your information and order the credit report, property appraisal and other documents, and finally send it on to the loan underwriter for a decision. The time it takes to receive the necessary documents affects the time required for approval. Your Jarrettsville Federal loan officer will be able to give you an idea of total processing time.

Closing

At closing, be prepared to:

• Bring valid identification.
• Review your final application to ensure the interest rate and loan terms are what you agreed, and that all personal information is accurate. If anything has changed, do not proceed.
• Funds must be wired for your down payment and closing costs
• Receive the keys to your new home if purchasing.

This is intended to provide a broad overview of the mortgage process. Each transaction is unique. Your Jarrettsville Federal Loan Officer will provide specifics to your transaction throughout the process.