For anyone buying their first home, applying for and obtaining a mortgage loan can be a bit daunting. But at Guild Mortgage, we do our best to ensure the process moves along smoothly and efficiently to find what is exactly right for you.
The first step to starting a loan application is to speak by phone or in person with a Guild loan officer. He or she will ask a series of questions about your income, employment, current residence and credit. The loan officer will also ask whether you have funds for a down payment and closing costs, and the source of those funds.
This is called the pre-qualification process, and once it is completed, the loan officer will be able to tell you if you are likely to be approved for a loan and if so, what size loan.
Next, the loan officer may direct you to a website where you can fill out an online loan application. You will also be sent a checklist of documents needed to move the loan application forward.
The list includes such items as bank statements, pay stubs, investment account statements, W-2 forms and tax returns. Other documents might also be required, depending on your personal circumstances. (Click here to see the full list.)
Once the application and documents have been submitted, the loan officer will obtain a credit report, and analyze all of the information. Often, an additional phone call is needed to gather more information.
After further review, the loan officer determines if the application can be approved. At this point, a pre-approval letter can be issued, which the homebuyer can use when making an offer on a property.
At Guild, we approach the entire effort as a collaboration between the loan officer and the prospective homebuyer. I liken it to writing a book which contains the applicant’s story. Different chapters cover personal information, employment, income, assets and credit. Together, these elements tell us if we can approve a home loan for the individual or couple.