Blank ndhl document checklist

NMLS ID #127433

Below is a detailed listing of upfront documentation that will be needed for North Dallas Home Loans, LLC to fully evaluate your loan request. This documentation allows the Underwriter to make a quick determination and keeps your loan on track to be processed within the rate lock timeframe to avoid unnecessary expense to you.

DOCUMENT CHECKLIST: Employment and Income Verification – 2 Year History • • • • • • • • •

Last 30 Days of Paystubs: (Showing Year to Date, overtime, bonus, and commissions) 2012, 2013 and 2014 Personal Tax Returns (all pages, all schedules) **only need 2 most recent years. So, don’t need 2012 if you have filed 2014.

2012, 2013 and 2014 Business Tax Returns (all pages, all schedules) **only need 2 most recent years. So, don’t need 2012 if you have filed 2014.

2012, 2013 and 2014 W2’s *don’t need 2012 W2 if you have filed 2014 Tax Returns 2012, 2013 and 2013 K1’s *don’t need 2012 W2 if you have filed 2014 Tax Returns Current P &L from business – (If Self-employed or K1) Social Security Income: 2014 Award Letter showing the amount **Do need the 1099’s for last two years. o Proof 3 months deposits (from bank statements- all pages) Pension/Retirement Income : 2012, 2013 and 2014 IRS Forms: 1099 and Annual Letter 2014 o Proof 3 months deposits (from bank statements- all pages) Child Support Income: Copy of Divorce Decree o Proof 3 months deposits (from bank statements- all pages)

Asset Verification: • •

Last (2) months of bank statements: for each bank account (all pages- any deposit ‘NON-payroll over $1,000 needs to have proof of where it came from.)

Recent 401-k statement / investment account statements/Retirement/Stocks/Bonds/Mutual Funds statements for last 60 days (not a snapshot or transaction detail – but the actual statement)

Housing History and Expense: • • • • • • •

Copy of ALL current Mortgage Statement(s) for ALL Properties -if no escrow- need Home Owner’s Insurance Declarations page for properties whether we are financing the property or not. (ALL) Copy of Purchase Contract that is executed and has a title company listed with signed receipt of earnest money page Copy of the earnest money check: that was given to Realtor or Title Company.

Title Company’s Contact Information Copy of existing Survey/ Plat (If Seller Not providing) Copy of Homeowner’s Insurance-name and number of Agent.

Copy of Driver’s License

You may send documents to: 935 Ave R, Grand Prairie, TX 75050, North Dallas Home Loans, LLC, NMLS# 127433 Office: (972) 422-LOAN (5626), Mobile: (972) 814-6587, Fax: (972) 767-3203

NMLS ID #127433

Justin@NorthDallasHomeLoans.com Fax: (972) 767-3203 Text to: 972-814-6587 **usually for legible Driver’s License copy

A Few Reminders of “Do’s and Don’ts” Before You Close On Your Loan: DO bring a cashier’s check made out to the title company for your closing costs. You can bring a personal check to closing for $500 or less.

DO notify us if your salary or other compensation has changed from what has been noted on your loan application.

DO inform us if your address changes from what appears on your original loan application. We will complete rental and mortgage verification for all of your residences within the last two years.

DO obtain homeowner’s insurance with minimum coverage equal to the amount of your total loan or the replacement value of the house. Call our office with your agent’s name and phone number at least 10 days before closing.

DO keep documentation (or a “paper trail”) on any large deposits into your account. A “paper trail” is copies of all paperwork necessary to prove financial transaction: copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.

DO make sure you have a clear termite report on the property. **Typically VA Loans only. If the termite report is not clear, provide a receipt for treatment that shows the chemicals and the amount used for treatment (upon request).

DON’T acquire any additional credit lines or make any large purchases on existing credit without first consulting us. For example: Purchasing a car or buying appliances for your new home will change your debt to income ratios.

DON’T change jobs without consulting us. A change in compensation may affect your ability to qualify. Borrowers must have a two year history of bonus and/or commissions to be counted as income. Lenders may verify employment on the day of closing as a quality control check.

DON’T co-sign with anyone to obtain a line of credit or make a purchase. The payment will show up on your credit report as an additional debt.

DON’T negotiate your contract with an allowance and expect to get money back at closing. An allowance can be used to pay closing costs and/or prepaids.

935 Ave R, Grand Prairie, TX 75050, North Dallas Home Loans, LLC, NMLS# 127433 Office: (972) 422-LOAN (5626), Mobile: (972) 814-6587, Fax: (972) 767-3203

NMLS ID #127433

Five Easy Steps to Home Ownership Purchasing a home can be exciting as well as frightening. Below are the steps it takes to find and get a mortgage. Step by step, it is as easy as one, two, three, four, and five!

Step 1. (60-40 Days from Closing) The Pre-Qualification Process This is an excellent time to begin the pre-qualification process. Pre-qualifying can mean several things depending on the lender that you choose, but generally it involves knowing the following points- the area you want to live, the type of home you want, and the loan that best fits your financial needs.

Many lenders will pre-qualify you for free. A simple call, with no obligation will allow you to know the type of loan that is best for you.

There are hundreds of loans available, so you should know your best options. The lender will also ask if they can pull your credit report. This report will alert the lender to any credit/financial problems. If you've experienced any financial difficulties (many of us have), you should explain that to the lender so they can provide the best alternatives for you. Next, the lender will most likely ask you a number of questions regarding other things about your life such as employment history, saving habits, marital status, ownership of additional properties, and many other questions to help them determine your ability to repay the loan. This is standard procedure in the mortgage process, so please don't be alarmed.

The following are some additional questions a lender might ask: Are you a first time homebuyer?

A first time homebuyer has not owned a home in the last three years or is a recently divorced homemaker. Why is this important? Because there are many programs that require a lower down payment, provide a lower interest rate, or even provide down payment and closing cost assistance to new homebuyers.

Are you a Veteran?

Many Veterans qualify for a special VA loan that requires no down payment! In most cases, it is easier to qualify for a VA loan. So, why not use this special benefit?

Becoming pre-qualified is an important step in the mortgage process to enable you to get into the right house with the right terms and conditions. Furthermore, getting pre-qualified helps you strengthen your position when negotiating with the seller as they now know that they have a qualified borrower. ___________________________________ Step 2. (40-30 Days from Closing) Make the Offer to Purchase Now you have found the property you want and you are ready to make an offer. You must consider what sales price to offer, terms, seller concessions, earnest money, option fee, as well as closing and possession dates.

935 Ave R, Grand Prairie, TX 75050, North Dallas Home Loans, LLC, NMLS# 127433 Office: (972) 422-LOAN (5626), Mobile: (972) 814-6587, Fax: (972) 767-3203

NMLS ID #127433

If you are in a sellers’ market (which we are), you will be able to negotiate very little. If you are in a buyers’ market, you will be able to get several concessions from the seller.

Keep in mind that a very low initial offer may anger the seller and can lead to no compromise or a refusal to work it out.

This is a process that can be best accomplished with the help of a competent and trusted Realtor. The Realtor is also very important because they should always have your best interests in mind when negotiating with the seller. This allows them to stay objective throughout the process even when you become emotionally involved. ___________________________________ Step 3. (30-25 Days from Closing) Acceptance of the Offer Acceptance occurs when all parties agree to the price and terms of the contract. At that time, the clock starts ticking to adhere to all details that are outlined in your transaction. You should be sure that all changes are initialed, no matter how insignificant you feel the change is. Absolute agreement and clarity is the key to protecting your rights and expectations for your purchase. **Please provide us documentation of any changes the moment they occur. Closing may be delayed without us being promptly notified.

This process is stipulated in your contract and should not be more than five days total from the time you submit the offer to the seller. It is important that this process moves along quickly. Once acceptance occurs, the next 25 days are filled with inspections, appraisals, and many other deadlines that you will need to meet to ensure a smooth closing. ___________________________________ Step 4. (25-5 Days from Closing) Meeting All Deadlines At this stage of the loan process, you may experience the stress of deadlines. Remember that you have chosen one of the most experienced, professional, and caring firms to handle your home loan. We are here to TAKE THAT STRESS AWAY!  Remember that you are spending a large amount of money and should feel completely comfortable with the entire process. Below is list of some of the things that will happen during this time period.

Open Title After all parties have agreed to the terms of the contract and the executed date is filled in, a copy of the contract and the earnest money must be delivered to the title company. The title company, a disinterested third party, must remain neutral throughout the transaction. They will carry out all the instructions of your contract and provide the title insurance. The address of the title company chosen will be on your contract, so you can communicate freely with them. Generally, your real estate agent will contact the title company for all key factors and they will review your final figures before closing. A good real estate agent can review the HUD-1 (closing statement) and make sure you have not been incorrectly charged.

General Inspection

935 Ave R, Grand Prairie, TX 75050, North Dallas Home Loans, LLC, NMLS# 127433 Office: (972) 422-LOAN (5626), Mobile: (972) 814-6587, Fax: (972) 767-3203

NMLS ID #127433

You have the right to do inspections any time prior to closing. Most buyers choose to get the property inspected during the option period. In case there are problems found, the buyer can terminate the contract. The option period begins on the executed date of the contract and normally lasts from 7 to 15 days.

If you feel there is a major item that must be addressed after the general inspection is done, you can: •

Terminate the contract within the option period.

•

Propose a lower sales price.

•

Request the seller do the named repairs.

•

Split the cost of repairs with the seller.

Termite Inspection If you are getting a loan, a wood destroying insect report may be required before closing. VA Requires this. This report is filled out by a specially licensed inspector and is often done at the time of the general inspection to keep inspection costs down. If you order the general inspection with the termite inspection at the same time, you'll most likely save yourself a trip charge. This inspection report states if there is a current infestation, there has been infestation, there are conducive conditions (areas that might attract), or the property has been treated. Please keep in mind that infestation in general is easily treatable. To view a list of inspection services in your area, please see the Professional Services section.

Appraisal The appraisal is required by the lender to insure the property's market value and to certify the property meets required standards. Two important areas to focus on are the appraiser's value and the lender-required repairs. Although the appraisal belongs to the lender, you typically pay the cost as required by the lender. Federal law entitles you to a copy of the appraisal.

Loan Approval After the underwriter has reviewed your file, they will approve and send it to the closing department. Loan approval is the full and final approval to get your property closed. Sometimes the loan approval is conditional and you must provide documented proof that either your previous home has closed or a receipt of a paid account. Either way, the loan approval moves you one step closer to owning your property. One major factor that separates North Dallas Home Loans, LLC from their competitors is experience. In all scenarios, we operate to stay one step ahead. This may result in gathering a few extra documents in the beginning, and asking a few extra questions in the beginning. This allows us to provide a WOWexperience due to not having to ask for things every other day. When the Conditional Loan Approval is released, we notify you and the Realtors that we have obtained it, but all requirements have already been gathered (because we asked for them up-front but didn’t submit because of a ‘grey area’) and Full Approval will be granted in 24-36 hours without anyone needing to do anything! This is where most bad experiences are shown. The underwriter asks for something that the loan originator didn’t think of, and the condition can’t be satisfied, therefore the loan is denied. ***We’ve funded 96.7% of the loans we’ve locked with an executed purchase contract over the last 32 months because we DO NOT issue a PreApproval Letter without doing our due-diligence up-front about anything that is questionable. The other 3.3% that didn’t close were from unforeseeable circumstances like when a relocation doesn’t happen at the last minute, etc.

935 Ave R, Grand Prairie, TX 75050, North Dallas Home Loans, LLC, NMLS# 127433 Office: (972) 422-LOAN (5626), Mobile: (972) 814-6587, Fax: (972) 767-3203

NMLS ID #127433

Repairs All repairs are generally done after the loan approval. Sometimes a seller might agree to do them early, but don't expect this until you have been completely approved for the loan. Repairs include lender-required repairs that must be done prior to the funding of the loan. Lender required repairs take precedence over all repairs, because the loan will not be approved unless they have been completed. Although the required repairs discussed are addressed in the contract, repairs that are needed after you are a homeowner should be a concern to you. Savvy real estate consultants should always recommend a residential contract to protect you in the coming year.

Re-Inspection After repairs are done, it is always recommended to re-inspect the property. Often times, the general inspector you originally hired will look over the work for a nominal charge. This re-inspection trip should not be skipped. Allow yourself enough time before closing for the re-inspection of items where repairs had been requested.

Homeowners Insurance Before closing you must obtain homeowners insurance. You will need to provide your insurance agent with the address, square footage, and age of the property. Some insurance companies ask for additional information that can be provided by your real estate agent. Your insurance will not go in effect until your loan has closed and funded. Your insurance premium will be included in your closing costs, so make sure you don't pay for it up front.

The amount of your insurance premium is determined by the type of coverage needed: •

Replacement versus actual cash value of items in your house

•

Replacement versus actual cash value of dwelling coverage

•

Deductible amount

•

Security system, deadbolts and smoke alarms

•

Discounts may be given if you use the same insurer for your auto insurance Please remember that flood and earthquake damage are not covered by a standard homeowner policy. You may need to buy a separate policy to cover those types of risks and is depended on the likelihood of occurrence in your area.

Survey A survey will provide a graphic account of the property you are purchasing. It will show the structure fence line, boundary lines, encroachments, and easements of the property. The buyer customarily pays for the survey, but the cost can be negotiated if the property includes acreage. ___________________________________ Step 5. (5 Days from Closing) Last Minute Details During these final five days you will need to finish up any last minute details to ensure that you get the keys to your house the day of closing. This is an exciting time, so try to relax and enjoy the process knowing that your new house is just around the corner. Below are a few last minute things that you will encounter.

935 Ave R, Grand Prairie, TX 75050, North Dallas Home Loans, LLC, NMLS# 127433 Office: (972) 422-LOAN (5626), Mobile: (972) 814-6587, Fax: (972) 767-3203

NMLS ID #127433

Closing Closing is the date and time set-aside for you to come in and sign the paperwork. Your real estate agent will coordinate the time and date convenient for you and the title company. As a buyer, you may want to close near the end of the month, so that you will minimize the number of days you must pay pre-paid interest. If the seller or lender is giving you a Credit, then you may have that credit applied toward this pro-rated interest to close whichever day you would like. The other consideration is that most closings are scheduled for the last day of the month. A wiser strategy might be to close three days prior to the end of the month.

Funding Funding occurs when all papers have been signed and all conditions have been met. Funding may occur on the day of the closing or on the next day. Careful planning will ensure that all expectations have been met. You will not receive the keys for the premises until the loan has funded, so plan to close early when there are definite time constraints.

Possession After funding, your real estate consultant will give you the keys to the property and you will officially own your new home.

Congratulations!

935 Ave R, Grand Prairie, TX 75050, North Dallas Home Loans, LLC, NMLS# 127433 Office: (972) 422-LOAN (5626), Mobile: (972) 814-6587, Fax: (972) 767-3203