Interview
This initial part of the loan process can be the most important. We are not going to simply throw out a bunch of rates, closing costs, and equity building strategies at you without getting to know you and your goals. You will initially meet with an MMC mortgage banker who will collect the information needed to start the process. Your banker will explain the types of mortgages you have available, the interest rates and fees for each type of loan, and the qualifications you must meet. Together, we will fill out the loan application form.

In most cases, we can offer you a number of options with varying interest rates and closing costs. When you meet with your mortgage banker, we will give you an opportunity to lock-in an interest rate (see the discussion of rate locks on this website). You want to ensure that the lock will cover the time it takes to close your loan. In some cases, you may prefer to wait to lock in a rate after your loan has been approved. Only by watching trends in the marketplace can you determine whether this is a good option for you. Your MMC mortgage banker will go over all the advantages and disadvantages. Remember, at MMC, your mortgage banker wants to work with you to get you the best deal possible.

What to Bring to the Meeting – Time Savers for You
It is important to know what will be required when you complete your loan application. In advance of the meeting, gather all your financial information, any savings or asset accounts, and the amount you have set aside as a down payment. You will also need full details on the property you plan to purchase. Here is a summary of what you will need in that meeting.

Property Information on the Home You Want to Buy
Because the property is security for the loan, the lender will have an appraisal done on the property, and you need to have the following information available:
• The sales contract, plus any attachments (it should show both the buyers' and sellers' full names)
• The amount of "earnest money" put down to bind the contract
• The name and telephone number of the listing agent or the seller – whichever one will be responsible for assisting the mortgage lender's appraiser
• The name and number of your homeowner’s insurance agent.

Your Personal Information
This information provides the lender with a history of your current situation.
• The buyers' social security numbers, ages, years of school, marital status, number of dependents and their ages, current address and phone number
• All addresses of where you have lived in the past two years
• List of current household expenses, including rent/mortgage payments, real estate taxes and insurance
• Name and address of your landlord(s) or mortgage lender(s) for the past two years.

Employment History and Sources of Income
This information shows the lender your stability.
• Two years employment history
• Employer's name, address, your job title
• Your two most recent paycheck stubs and W-2 forms for the past two years.
• If you are commissioned or self-employed, your full federal tax returns with all schedules.
• At least two years employment history with employer's name and address, your job title. If there are any employment gaps, you will need a written explanation.
• Proof of income from other sources that you want considered as part of your qualifying income.

Personal Assets and Debts
This provides the lender with a "snapshot" of your finances.
• Your two most recent bank statements for your checking and savings accounts.
• Your most recent quarterly statements from any stock or mutual funds.
• Statements from your certificates of deposit, retirement funds, face amount and cash value of any life insurance.
• Automobile makes, models, and approximate value.
• Address and estimated value of any real estate owned. If you own investment property, bring copies of the leases on the properties.

Documents Your MMC Mortgage Banker Provides
At the meeting your mortgage banker will order title insurance and an appraisal on your property. We will also obtain a Verification of Employment (VOE) from your employer as well as a Verification of Deposit (VOD) for each of your savings and checking accounts. Differences between the account balances reported by the institution and the balance you give for the loan application have to be reconciled, so be sure you have your correct current balances.

Credit Problems
If you have had credit problems, be open about them with your mortgage banker. We know that a period of unemployment, a major illness, a divorce, or other financial difficulty can temporarily impair your credit rating. To strengthen your application, we will work with you to provide a written explanation of the circumstances regarding each problem. We will consider these explanations as part of the underwriting analysis. If the problem has been corrected, your credit will probably be judged as satisfactory. If you have been through bankruptcy or foreclosure proceedings within the past seven years, be prepared to give full details and copies of applicable documents regarding them.

Because of the particular circumstances surrounding a loan application, your MMC mortgage banker may require additional information or documentation regarding you or the property after the application has been submitted for approval. MMC's mortgage bankers make every effort to collect all data at the outset, but cannot foresee every item that may be needed in advance. Do not think of a later request for more information as a sign of trouble with your loan – just be sure to reply promptly with the information.

After You Apply
The loan processing department will send out the VOE and VOD forms and order a credit report, a property appraisal, and other documents needed. Usually this takes only a day or two – sometimes several weeks if we have a difficult time obtaining the information that we need to approve your loan. Your Mortgage Banker should be able to give you an estimate of the time frame.

After we approve the loan, you will receive a commitment letter which sets out the terms of the loan and the length of time for which those terms are offered. If the loan does not close within the specified commitment period, the terms are subject to change. Be sure to read the commitment carefully to ensure that if you have any remaining conditions to fulfill, you are prepared to do so.

Once the commitment letter or approval has been received, you are assured of the financing you need to complete the purchase of your home. We can then focus our attention on your loan closing.