The Mortgage ProcessMany people describe the New Jersey lending process as a confusing maze, difficult to navigate. Years ago this may have been true, however with the advent of Internet based lending services the process of securing a New Jersey mortgage loan is becoming increasingly simplified for the borrowers.
The New Jersey Mortgage Application ProcessAll NJ mortgage lenders require a loan applicaiton to begin the process. The form is standardized and known as the 1003 which is the Fannie Mae designation for this form.
The lender will want to verify information about the borrower and the subject property. Borrower information will include verification of income and employment, assets, and credit history of the applicants. Some of this information will be provided by you, the applicant, as part of your application process. For example, you will be requested to provide copies of W-2 forms for 2 years, pay stubs, and bank statements for asset verification. Other information, such as your credit history, will be obtained directly from the credit bureaus even if you have a current credit report on hand. The lenders will always verify this information independently.
For the property itself, the lender will order an appraisal and a legal description of the property, such as a title report.
The New Jersey Mortgage Approval ProcessOnce the loan application is accepted, the lender will "undewrite" the loan. This means that all information provided is verifed and all calculations for income, assets, and the mortgage costs are taken into accout. The lender will then provide us with your loan approval terms. It is quite common for the lender to need additional information at this stage of the loan process.
Often times updated paystubs, bankstatements, letters of explantion, or other items will be requested by the lender once the approval is issued. The approval will also confirm the rate and terms of your mortgage loan. Working with your mortgage company during this time is critical. It is important to provide any information requested in a timely manner.
Once all of the additional documentation requested has been submitted and reviewed by the lender, they will schedule a closign date for your to officially sign the loan documentaiton and take ownership of your new home.
The New Jersey Closing ProcessThe closing is generally held at the title companies office. The sellers are not required to attend at the same time as the buyers. The closing time is schedule in order to accomidate for both parties.
At the closing you will need bring your drivers license and social security card. The closing agent will need to make a copy of these for the lender. In addition you should bring any cash that is required in the form of a money order or cashiers check made payable to the closing/title company handling your closing. The exact amount will be provided no less than 3 days prior to closing.
Once all of the documents are signed the lender will review the documentation and then fund the loan. At this time the seller will provide the keys to the buyer. you are now the proud owner of your new home!