999 Home Plaza Suite 301, Waterloo, Iowa 50701

319.239.7182

USA Mortgage - Iowa

The Loan Process

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PREQUALIFICATION

Prequalification is the term used to explain the short mathematical equation that determines how much of a loan you can afford. Please call/text or email me and I can help start the process. Please contact me at (Cell: 319-239-7182 or Email: jhigdon@usa-mortgage.com) . Prequalifying for a loan usually takes very little time as long as the information provided is correct!

APPLYING FOR YOUR LOAN

 

Applying for a home loan with USA Mortgage could not be easier. You may call to set up a convenient time to meet face-to-face with one of our professionally trained Loan Officers or, if you prefer, have your loan application taken over the phone, which usually is completed in less than 15 minutes.

If you prefer to apply online, you can start our quick, easy and secure online application with the link below. 

PROCESSING YOUR APPLICATION

When applying for a home with ANY lender will require the items listed below to verify that you in fact qualify for a home loan. We will help walk you through the process, but to get started you will want to work on collecting these items:

  

  1. 2 years Federal Tax Returns (all pages and schedules) and W2’s, State Returns are not required  
  2. Copy of Driver’s License and a secondary ID (SS Card, Passport, Military ID, Etc)  
  3. 2 months most recent bank statements (all pages checking and savings even if blank) If down payment/closing costs will come from another account please send that as well *statements must include your full name, name of the bank, account number and balances*  
  4. 30 days most recent paycheck stubs  
  5. Copy of current mortgage statement (if applicable)  
  6. Title Company of choice (if you have no preference we recommend Title Services Inc.)  
  7. Homeowner’s insurance contact information (if you have no preference we have recommendations) 


While this information is being collected, we will verify your credit report and order an appraisal on the property being financed to make sure you are not overpaying for a home and that the value is supported by local comps. This brings up to our nest step below.

APPRAISING YOUR HOME

 The appraiser will contact you (your Real Estate Agent if you are purchasing a new home) to set a mutually agreed upon time to spend 15 minutes exploring the inside of the property being financed. Then the appraiser will spend hours researching "comparables", like-homes in size and lot that have sold as geographically close in proximity as possible to the subject property and within the last 6 month period of time. 

UNDERWRITING

Simply put, an Underwriter is the brain trust of a lender. They determine if a loan is approved or rejected and under what terms. If your loan is not approvable under the terms for which you have applied, then a counter offer is usually made if possible. For example, if you applied for a 15 year fixed rate mortgage, but the Underwriter felt the larger payment would be overly taxing based on your other debts and as a function of your income, then they may offer a 30-year fixed rate mortgage instead.


USA Mortgage is different than almost every other lender in that our Underwriters are in-house. As a result, your file does not leave our office unless there are special circumstances. The result is a faster approval as a result of human interaction.

CLOSING

 The name speaks for itself. Usually your closing will take place at the title company of your choice or at our offices if you prefer.  A Closer will call you usually 24 hours prior to your closing to make sure everything has been properly coordinated between you, your Home Owners Insurance Agent, your Real Estate Agent (if applicable) and your Title Company. 


MORTGAGE PAYMENT:  DAS Acquisition Company partners with other major financial institutions for payment administration, also referred to as loan servicing.  What this means for you is that shortly after your loan is finalized, a new institution will begin collecting your payments, handling your escrow accounts, and answering your questions.  We understand the transfer of servicing may cause confusion on where to send your mortgage payments.  Don’t worry!  We have you covered and will help walk you through the process. 

Mortgage Shopping Quick Tips

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Before shopping for a mortgage, there are several factors that you should take into consideration.When you first begin shopping, the process seems relatively simple, just compare rates and pick the lowest one. But, after several calls to lenders that may not ask all the qualifying questions, you begin to realize that comparing lenders may become a difficult task. In addition, you may be speaking to loan officers that are not thoroughly trained, and therefore provide wrong information. So where can you go to shop for the right mortgage? Do not worry! Shopping for a loan can be made simple. Read the article below, use the loan comparison sheet provided, and soon you will see how easy it is to get the best deal. 

THE RIGHT MORTGAGE FOR YOU

 We will help you look at your budget and find a program and payment that work best for you! We have several loan program and no situation is exactly the same. A mortgage is probably one of the largest investment you will make in your lifetime, it is important to know that you have the right program for you. 

COMPARE RATE WIHT RATE AND FEE WITH FEE

Comparing what different mortgage brokers and lenders are charging you to get an interest rate is often the most difficult part of mortgage shopping. First make sure that you are comparing the interest rates on the same day. Rates change when the bond market changes, which occurs daily, if not a couple of times a day.


One of the difficulties in shopping for a mortgage is that lenders seem to have their own way of expressing costs. Compare total costs to get the loan. Get to the bottom line, and look at the GRAND TOTAL SUM of ALL costs before you compare the interest rates. We believe that you will find USA-Mortgage.com has the lowest cost mortgages anywhere.


For Example: For a loan amount of 100,000 on a 30 year fixed rate mortgage, ABC bank is offering you a rate of 8.375% with 0 points and 1% origination fee and $450 in lender fees. XYZ Bank offers you 8.5% on the same loan with 0 points and no origination fee, and $450 in lender fees. Both lenders are quoting a zero point loan. Which lender has the better deal? Lender XYZ probably has the better deal because paying origination fees is like paying "points". You should most likely get a .25% improvement in the rate for a "point". On the same day ask lender XYZ what it would cost to have 8.375% and then compare the total cost for both lenders to USA-Mortgage.com at that exact rate and lock period on our loan comparison sheet below. It is best to fix all lenders at one rate and lock period to compare the total costs to attain this rate and lock period on this particular day.

WHAT ARE THE FEES LENDERS CHARGE?

Fees can be broken into one or four categories:

  1. Appraisal/ Credit Report Fees or Application Fee - These are fees paid to companies other than your lender for services necessary to obtain your loan. In addition, some lenders may have "application fees". If this is the case make sure this fee is either credited to you at closing or is used for your credit and appraisal report.
  2. Loan Origination and Points - An origination fee or point is 1% of your loan amount. By converting these fees to actual dollars, you can get a truer cost comparison. Some lenders quote zero point loans but charge an origination or broker point. USA-Mortgage does not charge any origination points and YOU always choose whether you pay any other points.
  3. Lender Charges - (i.e. underwriting, processing, document preparation, tax service, flood, etc.) These fees can vary significantly depending on your lender.
  4. Title Fees - These fees are paid directly to a title company. These fees include; title insurance, recording fees, closing fee, survey, termite, and attorney fees if applicable.

Lastly, watch out for lenders playing the short lock-in game, where they are quoting you rates on a 15 day lock. If the lock expires prior to you closing on your mortgage, you lose your lock. At USA-Mortgage, we quote all of our rates on 30, 45, and 60 day locks, to allow you plenty of time to get your mortgage closed.

All USA Mortgage rate quotes are based on 30 day locks by default, but we do offer 15, 45, 60, and even offer extended lock periods up to 180 days. All USA Mortgage programs require you have the ability to document your income.