5 Steps to Getting Your Mortgage

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5 Steps to Getting Your Mortgage 2017-04-06T16:40:49+00:00

The Prequalification

To get the process started you should…

  • Call Stephanie Scarrella (651-702-1200) or Teresa Pignato (651-702-1200) who will take your application over the phone
  • OR click here to complete the short online pre-qualification application
  • You are not committed to work with Drake Bank by this prequalification!

Drake Bank will…

  • Inform you of the amount of the loan for which you prequalify and provide you a prequalification letter
  • Discuss products, interest rate options and closing costs
  • Identify the product(s) that best fits your financial needs and goals
  • Schedule an appointment for the application interview
  • Identify required documentation and the amount of the deposit needed to process your application

Also, you should know…

When you choose Drake Bank for your mortgage financing needs, you will have the personal attention of an experienced financial lender who will walk you through each step and help you understand the process.

The Formal Application

You will need to:

  • Provide basic information to your banker including your social security number, your income, loan amount, property address and value of the property to be mortgaged
  • Select a product (with guidance from Stephanie and Teresa)
  • Receive and review the Loan Estimate which will be sent to you. The Loan Estimate provides our good faith estimate of the interest rate on the loan, your monthly payments, closing costs and other items that help you decide if this loan is right for you.
  • Completing your mortgage application will require additional information about your employment history, income savings, investments, debts and the property you wish to purchase or refinance.
  • Confirm your preferred method for communication and receipt of documentation
  • Provide your intent to proceed and submit your application and application deposit. Your intent to proceed must be received before your application deposit will be accepted.

Drake Bank will…

  • Determine who should be contacted to gain access to the property and the best time to schedule the appointment with the appraiser
  • Identify any additional documentation that may be required to render a credit decision
  • Accept and deliver the completed application package to the chosen source of the mortgage funding

Also, you should know…

Additional information to further process your application will be requested, including…

  • Realtor contact information
  • Documentation about your income such as salary, earnings and wages (e.g. W-2s, alimony, investment income, social security)
  • Most recent two years’ federal income tax returns — all pages and W2s
  • Verification of employment if employed
  • Most recent two months’ bank and investment statements — all pages
  • Purchase contract and any and all addendums for the property you are buying

Processing

Teresa will…

  • Identify any additional documentation needed to process the loan and render a credit decision— confirm how and when it will be received
  • Order the appraisal, flood certification, title commitment and private mortgage insurance certificate.  The appraisal will be completed by a state-licensed and/or certified appraiser
  • Send you a copy of the appraisal

Underwriting

You will need to:

  • Secure and provide evidence of homeowners (or “hazard”) insurance and flood insurance (if required) coverage for the property being purchased or refinanced
  • Review, sign and return any applicable documents or disclosures that are provided to you by Drake Bank

Drake Bank will…

  • Review all employment, income, savings, investments and debt
  • Compare information on the application to paystubs, W-2 forms, tax returns, bank and investment statements, etc. to determine that sufficient income and funds are available for down payment, closing costs and reserves
  • Review the credit report to determine outstanding debt, payment history and your current credit score
  • Review the appraisal to confirm the market value and determine if the property represents sufficient collateral for the loan
  • Determine that qualification requirements are met to approve the loan
  • Provide updated regulatory disclosures

Closing

Drake Bank will:

  • Review and confirm all loan terms and closing conditions
  • Identify a convenient date, time and location for the closing
  • Schedule the closing with the title company
  • Send your Closing Disclosure for your review at least three business days prior to closing
  • Prepare and deliver the closing documents to the title company and coordinate final figures for closing; wire the loan proceeds to the title company
  • Provide information on final funds needed for closing and the method of payment required

You need to:

  • Attend the closing at Drake Bank or title company as scheduled and sign all mortgage and legal documents
  • Provide final funds for closing if required. This information will be detailed in the Closing Disclosure.

What you should bring to the closing:

  • When you attend the closing, bring a legal form of identification (driver’s license, state I.D., passport, etc.) and the necessary final funds in the form of a cashier’s check or wire                                                                            
  • Confirm with your Mortgage Banker or the title company if funds will need to be wired from your bank to the title company’s bank

If you have any questions call Stephanie or Teresa at 651-702-1200