Application and Loan Process Your first step in getting a mortgage loan is submitting an application (Uniform Residential Loan Application). Your Loan Officer can help you complete the form. The application simply provides us with a better understanding of your personal and financial information, as well as identifies the property and the reason for the loan. Credit Report After an application is completed, your Loan Officer (with your approval) will order a copy of your credit report to review your payment history with other creditors. Once we receive your credit report, your Loan Officer will be able to discuss the specific products American Home Mortgage may be able to offer you, as well as the timing to complete the process. Within three business days after a completed/signed application is received, your Loan Officer will provide you with an estimate of the terms and fees of the loan. Before providing a final approval, American Home Mortgage will take your specific situation into account including, but not limited to, the property appraisal and your income. Disclosures Loans for the purpose of purchasing a home are more complex and involve more parties than an ordinary refinance loan. American Home Mortgage, state and federal governments have specific requirements, including specific information that must be disclosed during the process. If you apply for a loan to purchase a home, American Home Mortgage will provide you with the following information and disclosures Good Faith Estimate "Settlement Costs and You" booklet Advanced Truth-In-Lending disclosure Transfer of Servicing disclosure Right to receive appraisal notice Handbook on Adjustable Rate Mortgages (if applicable) State specific and product specific pre-disclosures Appraisal How much can you borrow? The current value of your home, determined by the appraisal valuation of your property (conducted by a third party), will determine how much you can borrow. This valuation is even more important since your property is used as security for the loan. What is an appraisal? Your appraisal will provide you and American Home Mortgage an opinion of the value of your home. Appraisals represent an estimate of the price you would get if you sold your home today. Your appraisal will compare your home’s value to the value of other homes in your neighborhood, especially homes that were recently sold. An appraiser is hired by American Home Mortgage to determine the fair-market value of a particular piece of property. Who performs an appraisal? American Home Mortgage works with a number of appraisers statewide who adhere to the Uniform Standards of Professional Appraisal Practice (USPAP). Title Search/Title Report/Title Insurance Policy Researching the title of your property protects both you and American Home Mortgage during the loan process. Title to the property demonstrates that you, the borrower: 1. Own the property 2. Have the authority to use the property as security for your loan The title also shows what other mortgages or liens may be recorded against the property and whether the property taxes are paid. • A title search is an examination of the public records to determine the ownership and encumbrances affecting your property. • A title report indicates the current state of the title, such as easements, covenants, liens and any defects. A title report does not describe who owned the property over a period of time. • A title insurance policy protects the holder from any losses sustained due to problems with the title itself. Title policies insure both you and American Home Mortgage against most claims to the title of the property. Escrow At American Home Mortgage, we understand that budgeting for large expenses like property insurance and taxes can be difficult. Loan Officers, in many instances, can set up an escrow account to help you make the budgeting process easier. By paying a portion of your estimated hazard insurance (including flood insurance if required by FEMA) and property taxes each month into an escrow account, you should be able to manage your budget more easily. The lender that approves and closes your loan will manages the escrow account on your behalf and distributes payments as required to insurance companies and local taxing authorities. Sometimes called impound or reserve accounts in certain regions, escrow accounts are a definite benefit to many of our customers. The Real Estate Settlement Procedures Act (RESPA) and various state and local laws regulate establishing and administering escrow accounts. Why would you want an escrow account? Annual property taxes and hazard insurance premiums can cost thousands of dollars each year. Many of our customers prefer the convenience of including funds for taxes and insurance within their monthly mortgage payment. This alleviates the burden of having to save money and paying taxes and insurance in lump sums, which makes budgeting more difficult. Why does American Home Mortgage offer escrow accounts? Escrow is a valuable budgeting tool we offer our customers. No one likes surprises, and sometimes that’s what it feels like when you get your tax or insurance bill. We require escrow accounts for certain products, depending on the credit history/score of the borrower. If you select to set up an escrow account, we will ensure you receive the required legal disclosures explaining the account. Underwriting Your Loan Officer will work with the underwriting department to make sure they have all the information necessary to get you your loan. Final approval comes from the underwriting department. Underwriters review all of the documentation in the loan file to decide if it meets the Lenders Underwriting Guidelines and that, in their opinion, the loan should be made. Specifically, underwriting is defined as the analysis and matching of risk to an appropriate rate and term. The process of deciding whether to make a loan. In some instances, our underwriters may approve a loan with stipulations ("stips") or conditions. In other words, the loan is approved provided that additional information requested from the borrower is given as documentation. Hazard Insurance ( Homeowners Insurance ) During the loan process, you will be asked to provide proof of insurance before your loan can close and fund. Fire insurance is always required with coverage at least sufficient to cover the loan amount. In some instances, flood insurance and earthquake insurance may also be required, depending upon where the property is located. Property Taxes Like hazard insurance, the property taxes must be paid whether or not there is an escrow account. Unpaid property taxes become a lien senior to a mortgage and, depending on the laws within each state, property can be sold for delinquent taxes. A lien holder can suffer a significant loss if this happens. Closing When the loan is fully approved, it goes to closing. Closing includes the delivery of a deed, finalizing and executing (signing) documents, and disbursing funds to pay off loans or provide cash to the customer (funding). We can close at your home or a neutral site if you prefer not to go to the Title Company's office. Recording and Lien Position Recording a document is the process of making the document a part of the public record. The document is noted by the county recorder’s office or the registrar’s office and marked with the date and time of recording. The document becomes available to anyone who reviews the public records. If a deed of trust or mortgage isn’t recorded, then a title company is unable to find it in public records. Another lender could make a loan using the same property as security for its loan not knowing that the other loan is already in the first lien position. |
| David Reid 262-547- 8048 davidsreid@ sbcglobal.net |
CONTACT ME NOW
AMERICAN HOME MORTGAGE
OF WISCONSIN, LLC
262-547-8048
| Loan Process |
 |
 |
 |
 |
 |