Westcott Homes

One of the most important processes related to your new home purchase is that of securing mortgage financing. We have provided a checklist of the typical information which is required by a mortgage lender in making an assessment of a borrower’s qualification for a new mortgage loan.

Additional information may be requested later depending on your particular situation. There are several vital steps you will need to take in order to ensure a smooth, well-organized mortgage application and processing.

• According to the Residential Real Estate Purchase and Sale Agreement, typically you are required to apply for mortgage financing within five (5) days of mutual acceptance of the Agreement.
• During your mortgage application, the loan officer will use the information you have provided and will explain to you the mortgage choices available, how the application process works and the costs you are likely to incur to process the application and to cover escrow expenses. There may be some upfront expenses such as application, credit reports or appraisal fees (also known as prepaids) due at this time.
• Following your mortgage application, you may receive inquiries from credit verification companies enlisted by the lending institution to research your application. This is a routine procedure.
• Within a few days of your mortgage application, your lender will be able to give a preliminary evaluation and a preliminary approval based upon the information which you have provided.

When the lender has received job verifications from your employers, deposit verifications from your banks, credit reports, appraisal verification and any other exhibits needed, they will submit your completed file for final approval.

• Normally within 15-20 days after your mortgage application is complete and all necessary information is gathered, the lender will issue a loan approval in the form of a “commitment,” a document which expresses the lender’s willingness to lend you money under a specific set of circumstances and conditions. Please note that the timeframe set forth above is an approximation only and the timing may vary significantly based upon your particular situation.
  • Your lender will provide “truth-in-lending” and estimated closing cost statements in writing. These are “good faith” estimates of the charges. Your costs at close of escrow may be somewhat different, but these estimates will give you a guide for planning for the dollar amount you will need at close of escrow.
  • If loan approval is subject to certain conditions (sale of another home, etc.), you will have to provide evidence of satisfying those conditions prior to closing on your new home.

Once again, remember that your Westcott Homes community sales manager is on hand to guide you through the very important and sometimes complicated mortgage application process. Please call on them at any time if you have questions or concerns.