How The Loan Process Works
We know the loan process might seem daunting at first.
But you can relax… we got this.
The JP Mortgage Services team will guide you step by step through the process and keep you informed during the process to make sure your loan closes on time!
While loan programs vary, here’s what you can expect:
Let’s Talk About It – Give Us A Call
Communication is the key to getting you the very best interest rate, based on your unique situation. We will give you 100% transparent communication from start to finish, so you’ll know what’s happening at all times. Let’s get the ball rolling and give us a call at 512-796-3157. Or if you prefer we’ll gladly call you.
Start The Application Process
As with every mortgage will we need to verify some of your basic information. The first part will be your identity (name, address, birth date, etc.). We will then look at your credit, which will allow our experts to understand your situation better and get you the best pricing! This will have a very minimal effect on your credit score.
Basic Paperwork
You will need to provide the paperwork no matter who does your mortgage. Some of the paperwork we request may not be used. But it is better to have ALL of the paperwork at the start. Anything that is not used will be destroyed to ensure the protection of your privacy.
For all borrowers (maximum 5 people on a loan):
- Last 2 years of full 1040 tax returns (all pages).
- All w-2’s and or 1099 or K-1 last 2 years.
- If you own at least 25% of a business, we require the latest 2 years of tax returns (all pages).
- If you own less than 25%, then you only need K1.
- Latest 1 month of paystubs.
- Latest 2 months of bank statements. All pages, all accounts.
- If you have 401k/retirement/investment accounts, the last 3 months of statements, or the latest quarterly statement. All pages.
- Copy of valid Texas ID.
- Immigration status is not an impediment to get a loan as long as you have valid alien registration documentation.
Most important – DO NOT DEPOSIT ANY CASH INTO YOUR ACCOUNT WITHOUT SPEAKING TO US FIRST.
- 100% Gifts from family members is allowed, or any portion can be used. Speak to us BEFORE you deposit this money.
- DO NOT transfer or move any money from your accounts until you speak to us. The biggest problem in most loans is not able to use money that has been deposited incorrectly.
- From here forward: IMPORTANT!!
- DO NOT apply for any credit. For every $100/month debt you have, you lose approximately $10,000 worth of house you can purchase.
- DO NOT co-sign for anyone during this process.
- A co-signer can be used if needed.
Auto Approval
We will take your information and run it through the system and get your credit approval.
Once we have the required paperwork, we will automatically secure credit approval, even if you do not have a property chosen.
The AUS or underwriting process results will tell us exactly what is needed to get the loan.
Note: Once you have credit approval, DO NOT apply for any other credit or co-sign any loans. Also, DO NOT buy anything on credit.
Once a contract is signed, the appraisal is ordered the entire file is underwriting.
Underwriting
Once we complete the previous steps and have reviewed your credit and discussed the best mortgage program for your situation, we will start the underwriting verification process. Underwriting involves checking your income, debts, and assets so that there won’t be any surprises when we get to closing.
A property is chosen, a contract is signed, and the appraisal is ordered.
All matching paperwork requested by the auto-approval is then submitted to underwriters.
Conditions
Credit approval has already been given through the AUS/Auto underwrite. Matching paperwork with the AUS approval is in the hands of the loan processor.
The loan processor reviews the information and accompanying paperwork, and if any other information or clarification is needed, the loan processor approves with conditions. Usually, the conditions requested are minor.
Closing – YES!
The big day is here! The whole goal of the process is to make sure closing goes smoothly. Our experts work with the title company to assemble all the paperwork and confirm the total dollar amount needed for the loan.
This paperwork puts all of the correct dollar amounts and credits in the right order allowing you, the borrower, to know ahead of the closing how much money will be needed down to the exact penny, eliminating any surprises at closing.
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