Home Mortgage Tools
Home Mortgage FAQ
WHAT DOES THE LOAN PROCESS ENTAIL?
Qualifying for and using a home loan to purchase real estate involves a relatively simple process. An interested homebuyer first becomes pre-qualified for a specific loan amount. He or she can embark on a home search based on the pre-qualified loan amount. After finding the perfect home and negotiating an agreement with the seller, an interested buyer begins the formal loan application process. During the approval process, an appraisal and home inspection are conducted to determine the value of the home and whether any larger issues or expenses are present on the property.
Just before the final loan approval, an underwriter reviews the borrower's entire loan application to determine whether the applicant qualifies for the mortgage.
Once the underwriter gives his or her approval, the loan moves to closing and funding.
WHAT MATERIALS DO I NEED TO APPLY FOR A MORTGAGE
When an applicant applies for a home loan, he or she must present a number of documents. These items help Academy determine whether a potential borrower is qualified to take out a loan, how much he or she can be approved for, and the interest rate assigned in conjunction with the mortgage. Compile the following items in a folder to keep them safe and secure:
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Credit score and history.
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Bank statements from the last three months.
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Pay stubs and proof of income.
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W-2s and most recent completed tax returns.
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A record of available assets.
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Residence history for the past two years (include rental agreements and any owned real estate).
In some instances, additional documentation is required. For example, if someone is self-employed, he or she must provide a year-to-date-profit-and-loss statement and balance sheet. Borrowers should speak with their Academy Loan Officer to double check that all documents are collected and ready.
DO I NEED MORTGAGE INSURANCE?
In some instances, Academy may require buyers to purchase private mortgage insurance. PMI serves as a protection for Academy in case a borrower is unable to keep up with mortgage payments. This type of insurance also allows Academy to approve applicants who may otherwise be risky. An interested homebuyer who wants or needs to provide a lower down payment can do so if he or she also purchases PMI. Once a homebuyer accrues at least 20% equity in the property, he or she is eligible to cancel the PMI.
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