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Loan Application Interview
(Page 3)
NORTH COUNTRY MORTGAGE BANKING CORP. will look to substantiate
the source of down payment funds along with determining
how the closing costs and fees will be paid. If your down
payment is being provided as a gift, the person(s) providing
the gift must be a relative and must provide a letter stating
the donor's relationship to you. The amount of the gift
and the fact that no repayment is expected.
12.
Personal Indebtedness
The liabilities section of the mortgage loan application
is derived mainly from the debt reported on the borrower
and co-borrowers credit report. The credit report will show
both the amount of debt from each creditor along with the
monthly payment made. Some of the account detail listed
for each account includes the name if the creditor, account
number, date the account was opened, amount of the credit
line, balance of debt along with the timeliness of each
payment including an account history. Some of the liabilities
reported are:
- Mortgage loans
- Second mortgages, home equity loans and home equity
lines of credit
- Automobile loans
- Credit cards
- Child support
- Judgments
- Bankruptcy
It is very important that you let your loan officer know
if you have had credit problems. NORTH COUNTRY MORTGAGE
BANKING CORP. may require an explanation for certain items
being reported on your credit report. For example, if a
bankruptcy is being reported, was the bankruptcy due to
an illness or from mismanagement of your finances? If the
bankruptcy was due to an illness, then an exception may
be made and the loan approved.
Credit problems resulting from frequent late payments, judgments
or defaults, will damage your credit rating and may prevent
you from obtaining the financing you need or at the very
best, make you eligible for a mortgage loan which carry
both a high mortgage interest rate and mortgage fees. Unfortunately,
there is a price that you may have to pay for damaged credit.
13.
Additional Information
Both the borrower and co-borrower will need to sign the
mortgage loan application. The signatures certify that the
information provided is accurate and correct to the best
of your knowledge. Should any significant changes take place
regarding the information provided, you must notify your
loan officer and advise him/her of these changes.
Finally the last part of the mortgage loan application asks
for information on the race and gender of the applicant
and co-applicant. This information is used by the Federal
Government to monitor compliance with fair housing and equal
credit opportunity laws. You are not obligated to supply
this information if you do not want to. This information
is strictly voluntary and has NO bearing on whether you
get approved for the mortgage loan or not.
Your NORTH COUNTRY MORTGAGE BANKING CORP. mortgage loan
officer is required by federal law to ask for this information.
Under Federal Regulations, this lender is required to note
race and sex on the basis of physical observation or surname.
14. Request for
Additional Information
Your NORTH COUNTRY MORTGAGE BANKING CORP. mortgage loan
officer may require additional information or after the
application has been submitted for approval and underwriting.
The goal is to collect all information during the mortgage
loan application, however additional information like the
most recent pay stub or bank statement may be required.
This type of request does not necessarily mean you are in
jeopardy of being turn down for the loan. Underwriter's
are very conservative and need to be sure all relative information
is collected. Ultimately, it is the Underwriter's who issue
the formal mortgage commitment or denial.
15.
Processing Time - Timing To Receive A Mortgage Commitment
And Closing
You can expect to receive a mortgage commitment within
3 weeks from the time of application. In some cases this
can take less time and in some cases it can take more time.
As a rule of thumb, you may want to allocate 45 days as
the turnaround time to close on your mortgage loan. This
should help you in planning for the moving in to you're
your dream home.
16. Good
Faith Estimate
By law, within three business days after receiving the
application, NORTH COUNTRY MORTGAGE BANKING CORP. must provide
you with a "Good Faith Estimate" of the
anticipated closing costs. The Good Faith Estimate will
outline costs associated with the loan, such as points,
origination fees, bank fees, pre-paid mortgage interest,
mortgage insurance, title insurance, escrow reserves and
hazard insurance.
In addition to a "Good Faith Estimate", you will
also receive a "Truth-in-Lending Disclosure"
statement. This statement outlines the estimated monthly
payment, total cost of all finance mortgage loan charges,
stated as an Annual Percentage Rate (APR). The APR reflects
the dollar amount of finance charges you pay either up front
or over the life of the loan, converted to an annual interest
rate. The APR includes origination fees, bank fees, etc.
in addition to mortgage interest on the loan, and therefore
is usually higher than the interest rate on the mortgage
loan.
17. Commitment
Letter Issued
Once NORTH COUNTRY MORTGAGE BANKING CORP. has approved
your mortgage loan, you will usually receive a formal letter
of commitment for your review and signature. If the mortgage
loan does not close within the specified commitment period,
the terms are subject to change. The mortgage commitment
may contain conditions you need to satisfy in order to close
on your mortgage loan.
Once the mortgage commitment letter has been received, your
mortgage loan is then ready to close. You and your attorney
will be contacted by a NORTH COUNTRY MORTGAGE BANKING CORP.
Closing Manager to schedule the closing at your earliest
convenience.
18. The
Anxiety of Waiting - "Try And Relax-Approval Is Just
Around The Corner"!
Even though the approval to closing process takes approximately
45 days, it probably will feel like an eternity to close on
your mortgage. Should your loan officer ask for additional
information it does not necessarily mean that you are not
going to get approved on the mortgage loan. At NORTH COUNTRY
MORTGAGE BANKING CORP., our Underwriter's are looking for
ways to get your loan approved not declined. It is the goal
of your loan officer to recommend the type of mortgage which
not only suites your needs but also provides the absolute
best chance to get approved. Finally, it is our goal to make
the relationship with you a "Win-Win" relationship.
Good luck and please do not hesitate to ask questions.
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