HOMEBUYERS GUIDE

• DO

  Keep originals or be able to access on your employer/bank sites all pay-stubs, bank statements and other important financial documents.

• DO

  Provide your Earnest Money Deposit from your own personal bank account or acceptable gift funds. Please talk to your loan officer or loan coordinator for additional clarification. This will present a very difficult problem if not managed properly in the beginning.

• DO

  Provide all documentation for the sale of your current home, including sales contract, closing statement, employer relocation/buy-out program if applicable.

• DO

  Notify your Loan Officer or Loan Coordinator if you plan to receive gift funds for closing. Gift funds are acceptable only if certain criteria are met. Advances from credit cards for down payment / closing costs are never acceptable.

• DO

  Notify your Loan Officer or Loan Coordinator of any employment changes such as recent raise, promotion, transfer, change of pay status, for example, salary to commission.

• DO

  Be aware that a new credit report could be pulled just prior to closing.

• DON’T

  Close or open any asset accounts or transfer funds between accounts without asking your loan officer about the proper documentation required for your loan. For example, before transferring all funds from your savings to your checking, check with your loan officer.

• DON’T

  Deposit any monies outside of your automated payroll deposits, particularly cash or sale of personal property, without notifying your Loan Officer or Loan Coordinator. Many guidelines require substantial documentation as to the source of these deposits.

• DON’T

  Change jobs/employer without inquiring about the impact this change might have on your loan.

• DON’T

  Make major purchases prior or during to closing such as new car, furniture, appliances, etc. as this may impact your qualifying amount.

• DON’T

  Open or increase any liabilities, including credit cards, student loans or other lines of credit during the loan process as it may impact your qualifying amount.

• Standard Documentation for All Borrowers

  • W-2 forms (previous 2 years)
  • Paycheck stubs (last 30 days – most current)
  • Employer name and address (2 year history including any gaps)
  • Bank accounts statement (recent 2 months – all pages plus all non-payroll deposits must be documented so make a copy of the check before depositing)
  • Statements for 401(k)s, stocks and other investments (most recent)
  • Signed federal tax returns (previous 2 years)
  • Residency history (2 year history with name, phone number, address and account number of landlord or mortgage company)
  • Photo identification for applicant and co-applicant (valid Driver’s License or Passport)
  • Check or credit card information for credit report and appraisal fee
  • New home Sales Agreement, specifications, plans and/or legal description

  Additional Required Documentation (if applicable)

  Divorced Borrowers

  • Divorce Decree

  Self-Employed Borrowers

  • Copies of most recent 2 years corporate tax returns (with all schedules)
  • YTD profit and loss statement and balance sheet
  • Copy of business license or CPA contact information
  • 1099s or K1 forms

  Refinancing

  • Copy of Note, Deed of Trust or Mortgage
  • HUD-1 Settlement Statement/Closing Disclosure
  • Survey
  • Homeowner’s insurance information

  Borrowers Selling Current Home

  • Contract for home being sold

  Eligible Active Military or Veterans

  • Veteran DD214 or Veteran Reservists DD256
  • Certificate of Eligibility

  Previous Bankruptcy

  • Petition and Discharge
  • Supporting schedules A through K

  Relocation Agreement

  • If relocation move is financed by employer, such as a buyout agreement plus documentation outlining company paid closing costs benefits

  *Additional items may be requested during the loan underwriting phase if more information is required to guarantee your loan.

Step 1: Initial Consultation

We recommend reaching out to your Fairway mortgage professional via email, phone or in person to discuss your homeownership goals. This initial consultation covers how long you plan on living in the home, the amount of down payment you will need, and how much you want your monthly payments to be.

Step 2: Pre-Qualification

A pre-qualification determines how much money you will be eligible to borrow before you actually apply for a loan. It is very important to understand that a pre-qualification does not guarantee a loan. During this step, we gather your financial information and make a conditional determination about your qualifications. You can review our Document Checklist for the basic information required.

*A pre-qualification is not an approval of credit and does not signify that underwriting requirements have been met.

Step 3: Processing

After you have completed a loan application, your mortgage professional collects all required documents and submits your loan file to the loan processor. The processor reviews your file and orders your property appraisal. Depending on your situation, the processor may need additional documentation during this step. Once your loan file is completed, the processor submits it to underwriting for approval.

Step 4: Underwriting

The underwriter reviews your loan file to ensure all guidelines are met for the specific loan program and issues a loan decision. Once your mortgage has been approved and all conditions have been cleared, your loan is moved to “Clear to Close” status.

Step 5: Pre-Closing

You will receive a loan commitment letter which contains the details of your loan including rate, amount and term along with any outstanding conditions that need to be addressed before the file is sent to closing. Once everything is cleared by the underwriter, our closing department will complete your final documents.

Step 6: Closing

During closing, you will sign a variety of final documents. Be sure to bring a photo ID along with the proper form of payment to cover your down payment, closing costs, prepaid interest, taxes, insurance or any additional costs. After the closing documents are completed and all funds have been disbursed, you will receive the keys to your new home!