An Easy & Fast Process

Purchasing a home can be a daunting task…unless you have an experienced mortgage broker armed with the Golden Loan Strategy on your side. My promise is to always make YOU, the client, my top priority.

Prequalification

At American Mortgage Company, our pre-qualification process is a 5-minute phone call to establish your purchasing power. The lender gathers information about your income and debts, and makes a financial determination about how much house you may be able to afford. It’s a good idea to know how expensive a home you can afford before you start shopping for one! If you are refinancing the loan on your existing home, then the pre-qualification process should help you decide whether refinancing is a good idea for you.

Application

The application is the beginning of the loan process and either occurs after you have found a property you want to buy or have determined that you wish to refinance the loan on your existing home. You complete a mortgage application for a particular loan program and, supply all of the required documentation for processing. Various fees and down payment options are discussed at this time. The loan officer will deliver a Good Faith Estimate (GFE) and a Truth-In-Lending Disclosure (TIL) within three days that itemize the rates and estimated costs for obtaining the loan.

Processing of your Estimated Loan

The lender will typically submit the application package to an automated underwriting system that will provide the lender with the necessary documentation needed for loan approval. In some cases, the lender may also manually underwrite an application package. The lender’s processor reviews the credit reports and documentation to verify your employment, debts, and payment histories. If there are unacceptable late payments, collections, judgments, etc., the processor requests a written explanation from you. The processor also reviews the appraisal and survey and checks for property issues that may affect final loan approval. The processor’s job is to put together an entire application package for the lender’s underwriter.

Underwriting

The lender’s underwriter is responsible for determining whether the application package prepared by the processor meets all the lender’s criteria. If more information is needed, the loan is put into “suspense” and you will be contacted to supply more documentation. If the underwriter approves the loan, the lender issues a conditional commitment to lend, orders title insurance, works with you to clear all conditions to its commitment to lend, and then schedules a closing time. Conditions to the lender’s commitment may include issues with credit, income, or the property that may arise during the processing and underwriting process.

Closing

The closing will occur after all conditions are cleared and the lender issues a full loan approval. At the closing, the lender “funds” the loan with a cashier’s check, draft or wire to the closing agent, who disburses funds, in exchange for the title transfer to the property. This is the point at which you finish the loan process and actually refinance or buy the house, subject to the lender’s loan. Closings occur at different places in different states. For instance, some states require that the closing take place at a closing attorney’s office, while others use a title or escrow company. You may also be able to close at your home.

While your loan is in process:

It is especially important that you inform your loan officer immediately if there are changes that need to be made to the information you originally submitted. Accurate information on your loan application provides the foundation for smooth and easy loan processing as well as timely loan closing.

• DO notify us if your salary or other compensation changes.
• DO let us know if your address changes from what appears on your original loan application.
• DO keep documentation for any large deposits into your account. This could include paperwork necessary to prove a financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.
• DO notify us if you move funds from one account to another and provide documentation for the transactions.
• BE CAUTIOUS about acquiring any additional debt or making any large purchases on existing credit without first consulting us. For example: purchasing a car or buying appliances for your new home will change your debt-to-income ratios.
• BE CAUTIOUS if you are considering changing or quitting your job. A change in compensation or the type of work performed may affect your ability to qualify and/or close the loan. Lenders are often required to verify employment on the day of closing as a quality control check.
• BE CAUTIOUS when co-signing on a loan for anyone. The payment will show up on your credit report as an additional debt and could affect your ability to qualify for the loan.

1002 Raintree Circle Suite 100 • Allen, Texas 75013 • American Mortgage Company©. Company NMLS# 303719. All Rights Reserved.

“Figure: 7TAC §80.200(b)” “Consumers wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas, 78705. Complaint forms and instructions may be obtained from the Department’s website at WWW. SML.TEXAS.GOV. A toll-free consumer hotline is available at 1-877-276-5550. The Department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the Department prior to the payment of the claim. For more information about the Recovery Fund, please consult the Department’s website at WWW. SML.TEXAS.GOV.”