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
• Review the Consumer Financial Protection Bureau (CFPB) Your Home Loan Tool Kit that we send you. Review and sign the application 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 and attorney contact information
• Documentation about your income such as salary, earnings and wages (for example W-2s, alimony, investment income, social security)
• Most recent two years’ federal income tax returns
• Verification of employment if employed
• Most recent three months’ bank and investment statements — all pages
• Purchase contract and any and all addendums for the property you are buying

Processing

Stephanie and 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

Also, you should know…

Once the appraisal is complete, the application can move into the next step of the process. Ensure that your appraisal appointment is scheduled promptly and kept as agreed. Promptly provide Drake Bank with any additional documentation required to render a credit decision.

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
• Deliver the Commitment Letter and identify any closing conditions, if the loan is approved
• Provide updated regulatory disclosures

You should also know…

When you receive the Commitment Letter, updated regulatory disclosures if applicable and appraisal, you must review these documents and note any conditions required for closing. The loan can be scheduled for closing once Drake Bank has received all required information.

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
• Order pay-off letters, subordinations, releases, etc. and clear all closing conditions
• 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.

You should also know…

• 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 secured funds                                                                              
• 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
• Compare the Closing Disclosure to the Loan Estimate

• Contact your Mortgage Banker in advance of the closing if you have any questions