Loan Process Overview

Prospective Buyer

Calculate Your Purchase Power

Realistically assessing your finances upfront will streamline the home financing process.

Loan Originator Calculates Pre Approval

Realtor Look for a New Home

Accepted Purchase Agreement

1. Monthly Income Wages, salaries, business income after expenses Interest, dividends, or rental income Other income: (alimony, child support, pensions, or Social Security) Total Monthly Income (Step 1) 2. Monthly Expenses Monthly Credit Card Payment Auto Loan Student Loans Monthly Payments (other than a mortgage) Alimony or child support you owe Total Monthly Expenses (Step 2) 3. Amount Available for Monthly Housing Expense Total Monthly Income (Step 1) Minus total Monthly Expenses (Step 2) Total Amount Available for Monthly Housing Expenses (Step 3)

___________ ___________ $ ___________ _____________ ___________ ___________ ___________ ___________ ___________ _____________ ___________ ___________ $ _____________ ___________ ___________ ___________ ___________ ___________ _____________

Lock in rate or choose to float. Decide on a program, etc...

Lender submits application Additional information Upon request

Lender orders title, escrow & appraisal

File goes through underwriting Receive approval from underwriting. Clear pending conditions

Appraisal & title work acceptable

File goes through final underwriting

Underwritten file to closing department

4. Monthly Estimated Housing Expense Mortgage loan payment (principal and interest) Property Taxes Mortgage Insurance Homeowners Insurance (liability, flood, fire) Other (homeowners association dues HOA) Total Monthly Estimated Housing Expense (Step 4) 5. Qualifying Ratios **You must stay below 45% Debt to Income ratio** (Total Step 2 + Total Step 4) / Total Step 1 (Step 5)

Escrow Sign Final Docs Keys to your new home!!

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