Buying a home is one of the biggest decisions you'll ever make, and can be extremely complicated, especially as it relates to the financial aspects.
Manor Homes has compiled the following information to assist you in the process. Manor Homes is not a mortgage provider and therefore we encourage you to discuss your particular situation with a qualified advisor.
Your lender will help you complete a mortgage application (also called a 1003) either in person, on the phone, through the mail or through the internet. During the application process, your lender will assist you in determining which is the best mortgage program for your needs.
A Good Faith Estimate will be provided to assist you in anticipating the funds you need for loan approval and closing. Federal and state required disclosures should also be provided to you.
Depending on the loan program you select, you will need to prepare or gather a variety of items to complete the application process. Below are examples:
Once your loan application is complete, your loan advisor submits it to a member of the underwriting team.
The underwriter reviews your loan application and ensures that all of the necessary information and documentation needed for your loan program is in your file. Once everything is in place, the underwriter makes the final decision on loan approval.
Once your loan is approved, your file will be given to your loan processor, who will be your primary mortgage contact throughout the mortgage process and until it is time to schedule your closing.
The loan processor will also assist you if there are any outstanding conditions which need to be addressed in order to receive full loan approval.
The closing is the final step in the loan process. Several weeks before your closing, your home loan advisor will assist you in locking in the interest rate on your mortgage and schedule an appointment for the closing.
When your loan is approved and your home is ready to close, Manor Homes will contact you to confirm your closing date.
At the closing, you will review and sign all of the required documents with the closing agent/attorney and pay your closing costs. After you have signed the loan documents, your loan documents will be recorded and you will officially become a homeowner.
What to bring to the closing:
Your credit score is an important factor when a lender is determining whether to approve your loan application. It impacts how much you may be pre-qualified/pre-approved for and what the interest rate will ultimately be on your home loan.
Your credit score, specifically named the "FICO credit score" after the Fair Isaacs Credit Organization, is a value that ranks your credit worthiness. The number ranges from 300 (low score) to 950 (high score) and is based on credit information gathered and stored by the three national credit bureaus: Equifax, Trans Union and Experian.
All of your creditors (banks, credit unions, credit card companies, collection agencies, etc.) provide information to these bureaus regarding your payment history. It is important for you to conduct an annual "quality review" on your own credit report to ensure that all the information is accurate.
Occasionally, creditors may make a mistake in their reporting, so by checking your credit report annually, you can ensure that any issues are addressed in a timely manner. Generally, the higher your credit score, the better your interest rate will be.
The three credit bureaus typically use the same statistical model for everyone, that is, the Fair Isaacs Credit Organization model. This model analyzes your credit worthiness by applying scores to your credit patterns.
Creditors and lenders then use those scores to make predictions about how responsible you will be about making payments in the future.
Each time you are granted a loan, the lenders, creditors and credit organizations continually monitor your payment performance. They use this information to establish your credit score.
It's important to pay all of your bills on time and as directed, because on-time payments show up in your report and will result in a more favorable credit rating for you.
Late payments also show up and will not only cause a drop in your credit score, but could also cause increased interest rates with your creditors.
Also keep in mind that your creditors, such as banks and credit card companies, monitor your score from time to time. If they notice a late payment — even with another creditor — they can increase the rate you are charged without even notifying you.
Manor Homes encourages you to review the credit information gathered by each of the three bureaus on an annual basis. Contact them or visit their websites today:
Equifax Information Services LLC
Trans Union LLC