I have been a mortgage originator since 2003, and from the very beginning I was encouraged to call on real estate agents for business. Asking for your trust (without you requesting it, or proving that I deserved it) just doesn’t sit right with me. The thing that does make sense to me is approaching you with the following; an offer to connect you with potential buyers and sellers, sound advice, and a lending platform that encompasses the needs of eligible borrowers before I would ever ask for your trust.
If a borrower is looking for a great lender, their primary concerns should be how well they can communicate with the lender, and how well the lender explains and guides the process. One of the greatest parts of being a mortgage banker with AMMC, is that when I, you, or a borrower have a question, the answer can generally be obtained with a single phone call to my underwriter.
American Midwest Mortgage Corporation is headquartered in Parma Heights, OH. The company has been around for over 30 years, sadly this fact alone speaks volumes. I have been employed by 10 different lenders since entering this business, and 7 of 10 are no longer in business. Like the fairy tale princess, I have kissed a lot of frogs. I could have saved a lot of time, money and pain by getting here sooner.
The following loans are available to my borrowers:
FHA – down to a 600 credit score
FHA 203k- We do more 203k’s than any other lender in Ohio
VA – 620
OHFA – 1% down, minimum 600 credit score
Conventional – as little as 5% down
Jumbo loans- over $1,000,000, as low as 20% down, down to 680 credit score
Debt ratios (back end) up to 50% on conventional loans, and up to 56% on FHA loans
The following link describes the stages of loan approval http://ohiomortgageadvisor.com/the-mortgage-loan-approval-process/ and the information following that is a guideline, time table, and explanation of some of the specific responsibilities involved when working with me.
Application
I usually recommend a borrower sign the application after the home inspection has been completed, to make sure that , A) You still have a deal, or B) If the purchase price has changed.
If we are under time constraints, 30 or less days, I will ask the customer to have everything ready and have the application signed right away http://ohiomortgageadvisor.com/documents-required-for-mortgage-approval/. The application file is submitted to set up within 24 hours.
Set up
I have 3 people on my team, a set up person, a processor, and an underwriter. I am the primary contact on the loan. Once I have gathered all of the necessary paperwork to submit the file: the set up person receives the complete loan file including necessary documentation , the signed application, and appraisal fee. The set up person orders title work, appraisal, tax transcripts, and FHA case number (when needed). This will usually occur within 24 hours, on occasion this will take a second day. The appraiser is to contact the appropriate party to schedule an appointment within 48 hours. We have the appraisal within 7 days of the initial order, provided timely scheduling was possible.
Processing
After set up, the file is forwarded to the processor. Some of the processors duties include; verifying data in the file, checking for accuracy and completion of paperwork, dealing with compliance issues, ordering verifications of employment and rental history, and otherwise providing or requesting proof of items that are required to be in the file to underwrite. There is a much longer list of required actions, these are just the main ones. When items required to move the file to underwriting are missing, the file is put on hold until they come in. At this moment we can usually judge how well I have done my job up to this point. Think burden of proof : if all of the data supplied is thorough, logical, and legible the file will move on. Depending on work flow, and the availability of the proof required for the file, the loan will be with the processor for anywhere from 2-10 days. If it is closer to 10 days it would be due to the borrower or 3rd party failing to get the information we need.
Underwriting
Once the file has passed through processing the file is very thorough, and the underwriter will review all of the documentation in the file. The file is checked against underwriting guidelines and investor requirements. If anything is not clear, or up for interpretation, calls will be made to ensure the loan is eligible for financing. Once the file has been reviewed, a conditional loan commitment will be issued or the loan would be declined. The latter is a rare circumstance. The circumstances where a borrower is declined at this time, the blame would likely fall on my shoulders, unless a material change has occurred with the borrower. A file that is going to be declined should almost never go through this process. As a tenured loan officer I should have already reviewed anything and everything that could be a potential issue, prior to the submission of the loan. I know MANY lenders that allow this to happen on a regular basis. These are the companies that make me look good. How many times have you found out, after the closing has already been delayed, that it just isn’t going to happen? To me, thats a bad lender and/or a bad loan officer. I digress… the file will typically be off of the underwriters desk in about 2-3 days, depending on volume.
Processing
Conditions required to get a final loan approval are obtained by myself and the processor. Many of the various items will be simple and clerical in nature. Some items will be required from the borrower, and some from 3rd parties. Sometimes appraisal issues need to be addressed at this time. Whatever the issues/ items are, I will contact the borrower to let them know what is needed from them, and others. I will also at this time let the agent(s) know that we have a commitment, and without sharing any specific personal information let them know how long it should be before we have a clear to close.
You can refer back to the loan approval process for clear to close, scheduling closing, escrow, closed & funded, and filed & transferred.
If you or a borrower have any questions in regards to a loan scenario please feel free to call me at 440-666-6069, or contact me here.
