Snyder Homes works closely with a number of excellent lenders.
Applying for Your Loan
At the time you sign your contract, you will be asked to provide a pre-approval letter from a local lending institution. You must also apply for your loan in a timely manner. Please submit the name of your lending institution and mortgage originator to your Sales Associate as soon as possible.
Loan Application Paperwork
Once you have given all preliminary information to your loan officer, your lender sends verification forms to your employers, bank and current mortgage company or landlord and also orders the credit report and appraisal. You sign a release to authorize these steps. Your lender will provide you with a Good Faith Estimate and a Truth-In-Lending Disclosure.
Good Faith Estimate
The Good Faith Estimate lists the estimated costs you will incur at closing. Some of the numbers listed on this form are prorated, subject to change based on the actual date of closing. Others are set fees that should remain the same.
The Truth-In-Lending Disclosure shows the total cost to you, throughout the term of the loan, for your specific financing. The calculation is based on the assumption that you own the home and make regular payments throughout the term of the loan.
Verification of Employment
The lender sends Verification of Employment (VOE) forms to all employers for the past two years. The employers complete, sign and return the forms to the lender. These forms list the dates of employment, the amount of money you earned last year, and how much you have earned so far this year. The VOE documents bonuses and overtime you earned.
Verification of Deposit
Verification of Deposit (VOD) forms are sent to each banking institution listed on your application. The institutions indicate the date you opened each account, average balances for the past three months, and the amount of money you have in each account on the day the form is completed. Any loans or overdraft accounts you have with the bank will also be listed.
Verification of Mortgage
Mortgage companies and landlords complete Verification of Mortgage (VOM) forms. These show the lender how much you owe, the amount of your monthly payment, and whether you make your payments by the due date.
Your credit report shows the amount of money you owe to each of your creditors, minimum monthly payments and your payment history.
The appraisal confirms the value of the home you are purchasing for you and your lender.
Typically, several weeks pass as these reports and forms are returned to the lender. If any delays are encountered, the loan officer may contact you for assistance. The credit reporting agency may call you to verify that the information they have gathered is correct. Once the loan processor has collected this standard documentation, you may be asked to write letters describing your assets, income or credit. Few loans are finalized without requests for additional information just before the package is submitted to the underwriter for final approval.
Please remember that your lender requests this information to obtain your financing. Do not hesitate to discuss any concerns you may have with your loan officer. Perhaps he or she can provide some additional insight as to why they these requests are being made.
Loan Amount Requested
Before the processor submits your file to the underwriter for final approval, he or she will verify the final sales price. Make sure that copies of all addenda such as change orders signed after the original New Home Sales Agreement have been sent to the lender. This assists the lender in determining the exact loan amount. If change orders occur after the loan has been submitted to the underwriter, you may have to resubmit your loan application for the higher amount or the lender may ask you to pay for the additional items in cash.
During your first meeting with your lender, you will need to request a pre-qualification letter. This letter allows us to start the home, though final approval is still pending.
After you make a loan application, your lender will determine the amount of the loan for which you qualify. If you qualify for an amount that is less than you requested, ask your loan officer what changes might qualify you for a larger loan. Or, consider omitting some items, example: a deck or finished basement, and adding them to your home later. Another possibility is to talk to another lender with different programs and different requirements. Final loan approval will begin after the loan has been submitted to underwriting. If any of the documents requested have not been returned to the lender in a timely manner, approval may take longer.
Loan approvals often carry conditions of approval. The sale of a previous home or proof of funds are two examples. Discuss any concerns you may have about such conditions with your loan officer and obtain any requested documentation as soon as possible. Once all contingencies are met, the final loan can be approved.
If, after your best efforts, you are not approved for a loan within 15 days of signing your purchase agreement, in accordance with your New Home Sales Agreement, The Snyder Companies will refund your initial deposit upon your signing a release letter and returning the Homeowner’s Manual to the sales office.
The only thing anyone knows for certain about interest rates is that they will change. Do not rely on any predictions regarding rates. Locking your rate prematurely can result in extra expense if your new home is not complete in time to close within the lock period. We are happy to update you throughout the process of construction on the target delivery date. Until we reach a point in construction where factors outside our control can no longer affect the delivery date, the decision to lock your loan is your choice.
Between the date your loan is approved and the date of your closing, remember that any significant changes in your financial circumstances could impact your loan approval. If your closing occurs more than 30 days after the lender issues your loan approval, the lender may order an additional credit report just prior to the closing date. Changes in your financial circumstances, for example, purchasing a new car or increases in your charge card will appear as a new liability on your updated credit report. Such changes may cause your lender to reconsider your approval. Postponing such purchases until after closing is best.