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LOAN PROCESS

Your Initial Meeting with a Mortgage Professional at Creative Home Financing

The loan approval process generally begins with an initial interview where you and a mortgage professional discuss the potential loan. You will need to send information to us to verify your income and long term debts once the program has been determined.

You will want to talk with Creative Home Financing before house hunting to determine in advance how much you can afford and the mortgage amount for which you can qualify. This step is called pre-qualification and can save you time and trouble by making certain you are looking in the correct price range.

To complete the 1003 Mortgage Application, you will need to gather:

• A purchase contract for the house (if you have one)
• Your bank account numbers and the address of your bank branch, along with checking and savings account statements for the previous 2-3 months
• Pay stubs, W2 withholding forms, tax returns for two years, or other proof of employment and income verification
• Credit card bills for the past few billing periods, or canceled checks for rent or utility bill payments, to show payment history and amount of revolving debt
• Information on other consumer debt such as car loans, furniture loans, student loans and retail credit cards
• Balance sheets and tax returns, if you are self-employed
• Any gift letters, if you are using a gift from a parent or relative or other organization to help pay the down payment and/or closing costs. This letter simply states that the money is in fact a gift and will not have to be repaid
• We also have no-income documentation loans available

Having these items on hand when you visit the mortgage company will help speed up the application process . Usually an appraisal fee will have to be paid when you submit the mortgage application. After you speak with us, you should have a general idea if you qualify for the size and type of loan you want. After the mortgage application , we will let you know if you qualify for the loan within a couple of days

Buying a Home

Mortgage Application

Total Mortgage Payment:
A good first step in the mortgage process is to determine a monthly mortgage payment that will fit into your current budget.

Your Initial Meeting with a Mortgage Professional:
Find out what information you will need to prepare for your first meeting.

Down Payment:

Low Down Payments or no-down payments

Down Payment Loans and Gifts
Loans and gifts can help with your down payment but you can not use this strategy for all loan programs. The most popular program for this tactic is the Federal Housing Administration or FHA.

Home Appraisals

Appraisal Needed to Obtain a Loan:
Usually, individuals applying for a loan are only interested in obtaining the loan and unfortunately are not worried about the prudence of buying the property at the agreed price.

Appraisal Needed to Determine a Home's Market Value:
In the real world, very few individuals order appraisal reports to establish an offering price or to substantiate a purchase price.

Insurance

Homeowners Insurance:
When you insure your home, you should insure your home for the total amount it would cost to rebuild your home if it were destroyed.

Private Mortgage Insurance (PMI):
Private mortgage insurance is a type of insurance that helps protect the mortgage company against losses due to foreclosure. This protection is provided by private mortgage insurance companies and allows mortgage companies to accept lower down payments than would normally be allowed.

Relocation

Relocation Considerations:
Consider this common scenario faced by many employees: Your supervisor calls you into her office on a Friday afternoon and asks you to transfer to the New Jersey office

Select a Relocation Professional:
To begin your search for the right person to represent you in a home sale, ask a colleague or friend for a recommendation, preferably someone who has used the real estate agent's services.

We can help place you in the proper loan for your purchasing needs. Let one of our Mortgage Advisors guide you through the process.