Home Mortgage Loan Financing Process

The mortgage process is a series of steps that allows the lender to make an intelligent decision about lending
funds to you. These steps consist of interviewing and qualification, processing, underwriting, and closing. We
here at Archwood Real Estate use a personalized approach to keep every client up-to-date throughout the entire
loan process, and are always available to answer any questions you may have.

Step One - Interviewing and Qualification
The first conversations either by phone, email, or in person are the most important. We go through quite a lot of
information like your income, employment history, assets, and your credit history. We will consult with you ,
answer your questions, and guide you toward your financial objective -- to find a loan for you. The information
you will be providing can be very personal, which may make you feel uncomfortable at times; however, it is crucial
that you give accurate, truthful information throughout the entire process. This will speed your application along
and help eliminate the chance of any unexpected "surprises" that could cause a delay, or keep you from getting
your mortgage loan. Furthermore, you can be certain that your financial information will be handled with the
utmost discretion and professionalism.

Step Two - Application
Now that you have decided on the loan program that best fits your situation, we work together to complete the
paperwork process. We secure appraisals, collect supporting documentation on assets, income, and employment,
problem solve any anticipated or unexpected issues that may arise, and prepare a full loan package for final review
by a lender.

Step Three - Underwriting
Underwriting involves the valuation of all the documents that make up the file to determine if the loan should be
approved or denied based on the factual information presented. All of your loan documents will be verified and
reviewed for completeness, accuracy, and legibility. An underwriter will review your loan in terms of four
important factors: collateral, capacity ,character and capital.

Collateral: This refers to evaluating an estimate of the property's value and the property's physical
condition, which provides a basis for the lender to establish the maximum loan amount that the property
can secure.
Capacity: This refers to the financial resources you have available and your ability to make monthly
payments. Qualifying ratios are calculated to support the loan file data and meet certain requirements.
Character: This is based on the information from your credit report, which provides a history of credit
performance regarding payments. This acts as a measure of your motivation to make monthly mortgage
payments. A history of bad credit is not a basis for automatic denial. You may have corrected the problem
or may need to do so before loan closing can occur. Archwood Real Estate will make you aware of any
problems and can offer you possible solutions. Remember to be "up-front" to eliminate delays!
Capital: This refers to the liquid assets you have available for the down payment of your loan (if
necessary), and to meet closing costs.