Upon receipt of your completed application, your loan officer will check your credit history and determine which mortgage programs you may or may not qualify for based on the information you have provided. Your loan officer will contact you with any questions they may have. We will then provide you with initial disclosures showing details of how your proposed program will work.
Once you have reviewed the information provided to you, we will need you to confirm for us that you intend to proceed with your loan application. At that time, we will need you to submit proof of income, proof of assets such as bank and stock accounts, your signed offer to purchase (if a purchase is involved), and a check to cover the cost of your required appraisal.
Upon receipt of the required documents, we will confirm that you continue to qualify for the loan program you have requested. At that point, we will order an appraisal from a local appraiser selected by our appraisal department, check to see if the property is in a federally designated flood zone, and make sure that title insurance coverage has been ordered. The appraiser will contact you or your representative for an appointment to view the property.
During this time, you should be shopping for homeowners insurance coverage in an amount to cover the value of the property if you do not already have coverage. We will require that you have a full year’s coverage paid in advance for a purchase transaction. If you are refinancing, your policy will need to be current and in force. If your premium is due within a month after closing, we will want to go ahead and pay the next annual premium to ensure continued coverage. If you are required to carry flood insurance, we will notify you at least 10 days prior to closing, and the same coverage requirements will apply.
Should we become aware of circumstances that have changed since your original application, we may issue a new Good Faith Estimate and/or Truth in Lending disclosure showing costs that will be affected by the change.
Once we have received all the required documentation, we will be ready to set a closing date that is convenient to you and the other parties involved. If you are purchasing a new property, a title company will conduct the closing. Refinance loans may be closed at either a title company or at our office, depending on the individual circumstance. We will notify you of the time and place, and we do our best to attend closings at the title company in case you have any questions. You also have the right to examine the appraisal and the closing figures before you get to the closing. We will be happy to discuss any questions you may have at any time.
After closing, you will want to file for a mortgage exemption (if this is your primary residence) at the county auditor’s office. This results in a significant savings on property taxes, so please be sure to do it!
For most loans, your loan payment will be due on the 1st of each month. We will send a billing about 2 weeks before that, or you can arrange for automatic transfer of your payment from your checking account.
If you are escrowing for taxes and insurance, we will send you notice of escrow payment adjustment based on actual amounts paid during the year in mid-November. Your new payment amount will be effective as of the following January 1.
Please be aware that we do not currently service FHA, HomePath, or jumbo loans, so those customers will be dealing with another lender after the closing. At this time (4/25/2010) we service all other loan types that we originate.
Thank you for your interest in Bloomfield State Bank!