Apply For A Loan

Processing the Loan Application

To "process" a loan is to make sure that all of the required documentation has been obtained and all the conditions stated in the preliminary approval have been met.

• Good Faith Estimate of settlement costs is the legal format in which a New Jersey mortgage lender has to disclose all the fees and charges associated with getting your New Jersey home mortgage loan or your New Jersey refinance mortgage loan. An estimate of any mortgage insurance costs to be paid by you at closing is also included on this statement.
• Truth in lending disclosure is the legal format in which a New Jersey mortgage lender must describe your loan in detail including the interest rate, annual percentage rate, and any other features that may apply.
• A Property Appraisal is a report written by a licensed appraiser who visits the property to measure it, draw a simple floor plan and take photos. The appraiser also compares the property to other recently sold properties in the area to determine "fair market value."
• Title Report (or Title Search) tells the New Jersey mortgage lender who owns the property and what — if any — liens there are against it that must be paid prior to funding your loan. The title report will also include information about any easements or other rights that apply to the property.

The Credit Decision – Final Approval

An underwriter will review and analyze the processed New Jersey mortgage loan package and either approve, deny or suspend your application. If mortgage insurance is required for your loan, the underwriter will also submit the loan package to a mortgage insurance company for review.

In reaching a decision on your application for a mortgage, NJ underwriters will take into consideration your income, credit, cash reserves and the property itself.

• Housing Expense Ratio is the percentage of your gross monthly income it takes to make your house payment, including taxes and insurance. If you earn $3,600 and your house expense is $1,200, you have a 33% housing ratio (1,200 is one third of 3,600).
• Total Expense Ratio is the percentage of your gross monthly income it takes to pay your house payment plus other monthly payments you make, such as car payments, credit card debt and student loans.
• Cash Reserves is the money you have left in the bank after your New Jersey mortgage loan or New Jersey refinance mortgage loan closes. Cash in the bank is very important in case you run into unforeseen circumstances. Usually, two months worth of house payments are required.
• Credit History is the timeliness with which you've paid your bills in the past. Underwriters will generally focus on the last two years.
• Loan-to-Value (LTV) Simply put, if you have a house valued at $100,000 with a $90,000 loan you have a 90% loan-to-value ($90,000 divided by $100,000 = 90%).

The underwriting process usually takes two days or less to complete. Call a New Jersey mortgage banker at Sunquest Funding today to begin the process of filling out your NJ mortgage application so you can be pre-approved before you find a property to buy!

Funding Your Loan

The satisfying conclusion to the process of getting a New Jersey home mortgage loan is called the "settlement" or "closing" because that's when everybody "settles up" and "closes" all the loose ends.

While at settlement of your New Jersey home mortgage or New Jersey mortgage refinancing, you will read and sign numerous documents relative to the purchase (or refinance) of your property. Your Sunquest Funding New Jersey mortgage banker or attorney can answer any questions you may have regarding these documents. Most settlements, or closings, take about an hour or less to complete depending on the complexity of the transaction and if all documents are in order. That's why it's so imperative to engage the help of a professional New Jersey mortgage banker at Sunquest Funding you don't want any surprises at the closing table!

Congratulations! You now have a comprehensive understanding of the entire process of applying for a New Jersey home mortgage. The professional and dedicated staff at Sunquest Funding requests the honor of serving you in obtaining the best possible financial arrangement for you and your family.

Remember ... at Sunquest Funding, we will remove the mystery from the home financing process. Call today for more information and receive a call back within one business day!

The Mortgage Process

Choosing a Loan Program

The first step in securing a NJ mortgage is to contact a mortgage financial expert at Sunquest Funding to help determine what type of New Jersey home mortgage loan is best for you. Some terms and concepts you should have a familiarity with include the following:

• Loan Program - a term that describes whether the New Jersey mortgage interest rates for a particular loan remain fixed or will change, and how long the loan will last.
• Conventional loans - the most common type of New Jersey mortgage loan. With low down payments, private mortgage insurance companies usually insure conventional New Jersey mortgages. Private mortgage insurance adds a relatively small cost to your financing and allows you to buy a house with a lower down payment.
• FHA mortgages - allows low down payments and are insured by the Federal Housing Administration. When obtaining a mortgage, NJ homebuyers can pay a significant up-front mortgage insurance premium at closing, plus an additional annual fee. The one-time mortgage insurance premium and certain closing costs may be financed through the mortgage.
• VA Mortgages - insured by the Veterans Administration, are available to certain members of the U.S. military. If you qualify, this special government benefit to veterans might be a good option for you. Ask your New Jersey mortgage banker at Sunquest Funding for more details.
• Conforming loans - "conform" to the criteria and limits set forth by the largest buyers of loans, Fannie Mae and Freddie Mac.
• Jumbo loans - loans that are bought by different investors. The loan amounts for jumbo loans exceed the conforming guidelines.
• Fixed Rate Loans - have New Jersey mortgage interest rates that can never change for the life of the loan.
• Adjustable Rate Mortgages (ARM) - have features that allow for future interest rate changes. There are many variations of ARMs so be sure to ask your New Jersey mortgage banker at Sunquest Funding to fully explain the features of the loans they offer.
• Home Equity Loans - A fixed rate second mortgage that allows you to do home improvements, consolidate debt or use as purchase money to avoid mortgage insurance.
• Home Equity Line of Credit (HELOC) - A home equity line of credit usually tied to the prime rate for the same purposes as a home equity loan, but with the added flexibility of taking equity out of your home as you need it.

When applying for a mortgage, New Jersey residents should have a program in mind so your New Jersey mortgage banker at Sunquest Funding