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Before applying for a loan, you'll need to first determine how much you wish to borrow.

By providing me with a little information about yourself and your financial needs, we can compare different loan amounts and down payments to find the right loan amount and price for you.

  
    

  
 
 

There are many mortgages to choose from - each with different rates and features.

Once you have determined the amount of your loan, the best loan(s) will be suggested to meet your particular needs.

  
    

  
 
 

To apply for a loan, you'll need to furnish the following information:

  • Names, current addresses, Social Security numbers for all borrowers
  • Previous addresses for two years
  • Names and addresses of employers for the past 2 years
  • You and your co-borrower's gross monthly income, including bonuses and dividend/interest income
  • Information about the property you wish to buy
 
    
  		  
 

After you submit your application, you will need to fill out a Disclosure Package that includes several items that you will need to sign, and a list of documents that you will need to send in.

Some of those documents may include:

Salaried Income
  • Most recent pay stubs from the last 30 days showing year-to-date income; if there have been multiple employers in the current year, all paystubs showing year-to-date income.
  • Last two year's W-2's
Salary Plus Bonus/Overtime
  • Most recent pay stubs from the last 30 days showing year-to-date income
  • Last two year's W-2's
Straight Commission Income
  • Most recent pay stubs from the last 30 days showing year-to-date income
  • Last two years' 1040 tax returns
Self Employed Persons (1099 recipient)
  • Last two years' personal tax return and partnership or corporate tax return
  • Current year-to-date P&L
Partnership Income
  • Last two years' personal tax returns
  • Last two years' K-1s, 1065s, P&Ls, and YTD Balance Sheets
Corporation Income (if ownership is 25% or more)
  • Last two years' personal and business tax
    returns (1120)
  • Current year-to-date P&L
Trust Income
  • Trust Agreement or trustee's letter stating payment amount, frequency and duration (must continue for at least three years
  • Last two years' tax returns
Rental/Lease Income
  • Copy of Rental/Lease Agreements
  • Last year's tax return
Social Security/Pension/Retirement/Disability (three years remaining required)
  • Award Letter
  • Most recent two months' bank statements
    (if direct deposit) or copies of checks
Interest/Dividends
  • Last two years' tax returns
  • Copies of current statements
Alimony/Child Support
  • Complete Divorce Decree
  • Proof of six months' receipt
    (must be recieved continuously for three years to qualify as income)
Assets
  • Most recent three months' bank statements
  • Most recent brokerage account statement
  • Most recent IRA/401K statement
  • Gift Letter, if gift funds are being used: Letter includes date of gift, the amount and donor's name, address, telephone number and relationship, statement that repayment is not expected
  • Document(s) verifying transfer of funds and copy of a withdrawal receipt from the donor's account or a copy of the gift check
  • Certified copy of HUD-1 settlement statement from sale of present property, if applicable
Credit History/Liabilities
  • Bankruptcy petition and discharge papers, if applicable
  • Written explanations of any serious derogatory credit if applicable:
    - Bankruptcy
    - Collections, judgements, liens
    - Late payments - mortgage or revolving credit
    - Defaults, foreclosures, short sales
Final divorce decree, if applicable
 
Purchase Transactions
  • Copy of signed Purchase Contract
    (include all counter offers)
  • Gift Letter, if gift funds are being used: Letter includes date of gift, the amount and donor's name, address, telephone number and relationship, statement that repayment is not expected
  • Document(s) verifying transfer of funds and copy of a withdrawal receipt from the donor's account or a copy of the gift check
  • Certified copy of HUD-1 settlement statement from sale of present property, if applicable
  • Evidence of homeowner's insurance
    (required prior to closing)
  • Evidence of flood insurance only if you are located in a flood zone
Refinance Transactions
  • Evidence of homeowner's insurance
  • Evidence of flood insurance only if you are located in a flood zone
Condominiums or Planned Unit Developments
  • Project name, homeowner's association (HOA) name, HOA contact name and phone number
 
    

  
 
 

After you submit your information for approval, your title and escrow settlement will be ordered.

PLEASE NOTE: If you cancel the loan, or are denied approval after title work has been ordered, you may be responsible for preliminary title fees charged by the title company.

The next steps involves a qualified appraiser who will review your property. After their review, a report will be submitted which helps determine if the home is worth enough to support your loan.

A final underwriting will take place. This involves analyzing the appraisal report and your ability to repay the loan.

  
    

  
 
 

Once your loan has been approved, the next step is to be aware of your rate lock status. You can choose either locked or floating. By locking your rate now, you can be assured that your interest rate won't increase before you close your loan.

Remember, one advantage with using a mortgage broker is the ability to lock in the rate at ANY time during the loan process.

  
    

  
 
 

You will be contacted to schedule a closing date.

Closing is not very complicated, but you'll need to understand the various steps and fees involved with the process. Here's a list of the costs you can expect when closing your loan:

Title Insurance fees

These fees cover title search and insurance fees. A search is made to verify that the seller is the one who actually owns the house, and has the right to sell it.

Title insurance protects the lender in case it turns out that there is a lien or other title problem on the house that was undisclosed at the time of sale.
 
Appraisal fee
Your mortgage lender needs to know that your house is worth enough to support your loan. A qualified appraiser will look over the property and produce a report.
 
Funding and Review Fees
These are our fees for processing your mortgage loan. Certain discounts may apply.
 
Origination Fees/Points
Based on the loan product and rate you choose, you may pay points. One point equals one percent of the loan amount.
 
Mortgage Insurance

Generally, a loan with a down payment of less than 20% requires mortgage insurance, which protects the lender if a borrower defaults on a home loan.

With David Talbot you may be able to qualify with as little as 5% down.

 
Homeowner's Insurance
Homeowner's insurance is required to protect against property damage due to hazards, such as fires.
 
Credit Report Fee
A fee charged for obtaining your credit report.
 
Recording and Transfer Fees
This covers the costs of changing the property title in official county records.
 
Pro-rated Property Taxes
These are taxes paid to the state and/or community for your property. They vary according to the purchase price, the local tax rate, and the month in which you close your loan.
 
Prepaid Interest
This amount pays the interest due from the date of funding to the 1st of the following month.
 
Additional Fees

You may be required to pay other fees including:

  • Wire Fees
  • Tax Service
  • Survey Costs
  • Flood Certification
  • Escrow/Settlement Charges
  • Messenger Fees
  • Sub-Escrow Fees
  • Transfer Tax.

However, each loan is different and these fees may not apply in your situation.
  
  
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Remember -
You can lock your rate at any time during the loan process.

Just another one of the many advantages of doing business with David Talbot.