Getting approved for a mortgage does not have to be a long and drawn out process. When Custom Home Loans provides your home financing, the loan process is completed quickly and
without hassle.

You can count on Custom Home Loans to provide high quality personalized service throughout
each step of the process.

To help you better understand the mortgage loan process, we’ve listed below some of the
steps that are a part of your loan approval.

Step 1 – The Application

A mortgage application is somewhat more detailed than those used for other types of loans,
such as an automobile loan. The Residential Mortgage Loan Application can be completed by
visiting or calling one of our branch offices, or you may complete the application online
through our secure website. If a Realtor or friend refers you to a specific loan officer, be sure
to ask for that person. Otherwise, any of our experienced loan officer staff will be pleased to
get you started.

For your application, you’ll need to provide information about yourself and any co-borrower
that may be applying with you. Generally, we will ask for information about your
employment, income, assets, and current debt. Your loan officer will provide you with a list of
specific documentation needed to process your loan, but here is a list of some of the most
commonly requested items:

            W-2s for the most recent 2 year period
            Paystubs to cover the most recent 30 day period
            Bank statements for the most recent 2 months
            If self-employed, tax returns for the last 2 years

During the application process, the loan officer will provide you with a Good Faith Estimate of
closing costs. This is a list of typical expenses that are associated with your loan. It is very
important that you realize that this is an estimate only.

Step 2 – Processing and Underwriting

Simply put, loan processing is what takes place to verify the information in your application
and prepare your loan file for underwriting. Technology allows for a more streamlined
process than what was common just a few years ago. You may hear the term “scoring” used. Custom Home Loans, like most all mortgage companies uses an automated underwriting system
to simplify and speed the process. These automated systems are connected to the primary
investors of home mortgage loans, Fannie Mae and Freddie Mac. The process of entering your
information and obtaining the automated feedback is called “scoring”. Based on the
information provided, the system will either give us an automated approval or refer the loan
back for additional information or manual underwriting. This feedback also tells us exactly
what documentation is necessary to complete your file. It is during this process that your
credit will be reviewed to determine how you’ve paid your debts in the past and what your
ability is to repay the loan you are requesting based on available income and current debt.

Another step in processing is having an appraisal of your property done by an independent
appraiser. This is to make sure the amount you are paying or refinancing is supported by the
market value of the home. The appraiser is selected by the mortgage company from a list of
approved appraisers in the area and is not employed by Custom Home Loans.

Also, a title search is done to make sure there are no outstanding liens on the property or
any other issues that would cloud your ownership of the property or the mortgage company’s
ability to establish a clear first priority on the property.

With all of this documentation in place, the underwriting process can be completed. An
underwriter is someone who reviews the file to make sure all documentation is present and
acceptable to the investors. Sometime it is necessary for your loan officer to contact you for
additional information to clarify questions the underwriter may have. We try to anticipate
these questions and ask for everything in advance, but sometimes there are additional
questions or issues that we must address.  

Step 3 – Closing

Once you have a loan approval, you are ready for the final stages of the process. Closing
involves our working with the closing attorney to prepare the necessary documents to finalize
your loan. To close the loan, you will actually go to the attorney’s office to sign all of the
necessary legal papers to formally complete the loan transaction and for the loan proceeds to
be distributed. The attorney will also collect from you any money that is to be your down
payment and any remaining closing costs that you may owe.  If this is a purchase, then the
transaction is now complete. If this is a refinance of your primary home, the law requires a
three (3) day waiting period, called a right of rescission, before the funds may be disbursed.