As your mortgage, financing partner, United Bank & Trust knows that the mortgage process can seem overwhelming. When it comes to local mortgages, we are your trusted solution, providing a smooth application and closing process. Here’s a helpful guide to let you know what to expect.
Review Your Financials and Determine Borrowing Power
We recommend that you check your credit report before applying for a home loan. You can obtain one yourself through any of the three main credit bureaus, or we can provide you with one.
- Review your credit report thoroughly for accuracy
- Resolve any inaccuracies or outstanding issues
- Reduce the percentage of available credit currently in use if possible (pay down other debt)
- Understand your debt-to-income ratio (a good rule of thumb: your future housing payment totals no more than 28% of your current monthly gross income, and that if you have other long-term debt, your total debt not exceed 40% of your current monthly gross income).
- Use our mortgage calculators to estimate your borrowing power
- Determine the amount you may have for a down payment
Before signing a sales contract for a home, and even before looking for a home, it can be a good idea to see which loan solutions you qualify for based on your financial situation, as well as the amount you are eligible to borrow. We call this process “getting preapproved.” To help you with this, we’ll need to check your credit history and gather the information below from you. If you are preapproved, we will provide you with a letter that you can submit with a purchase offer to help show that you are serious buyer. To smooth the application process, you’ll need to provide:
- Copies of two most recent pay stubs, reflecting 30-day and year-to-date earnings
- Social Security, pension, retirement, or investment statements
- W-2s from the previous two years (or federal tax returns if self-employed)
- Copies of two most recent bank statements
- Copy of government ID- Driver’s License, Passport, etc.
Put an Offer on a Home and Proceed to Closing
Once you have a sales contract on the house you plan to purchase and all other necessary steps have been completed (such as appraisal, inspection, etc.), we will proceed to closing. The closing usually takes place at the office of a real estate closing attorney or title company selected by the buyer and/or seller. Depending on the situation, the buyer, seller, lender, Realtors and attorneys may all be in attendance. Be sure to bring the following to closing:
- A cashier’s check (if not using a wire transfer) to cover any applicable down payment and closing costs
- Valid photo ID
Once all the paperwork is signed, you are now a homeowner! As you leave the closing, you will receive:
- A copy of the loan and title company documents you signed
- Keys to your new home