Mortgage Information

What Happens When I Apply For A Mortgage?

Moving into a new home is a big step. You want everything to be just right, especially the financing. At Dollar Bank, we want to help. We know how hard you've worked to reach this important point in your life and we want to work with you to make your new home a reality. We want you to understand the application process. If you'd like a quick course in what to expect, read on.

Of course, not everyone is ready to get a mortgage right away. Perhaps you're able to qualify for a mortgage but aren't familiar with the process of selecting and purchasing a home. Maybe you've been denied mortgage funding in the past, or had past credit problems that came to light during the application process. If any of these situations applies to you, Dollar Bank's Credit Enhancement Program (CEP) could help. This special program provides credit counseling to applicants who wish to secure a mortgage. Many participants are able to qualify within a year of entering the CEP. For more information on the Credit Enhancement Program, read "Understanding the Importance of Good Credit When Buying a Home."

The First Step: Knowing What To Expect
When you find the perfect house, you want to make it your own as soon as possible. So we ask a lot of questions up front to allow us to act on your application quickly. We review your credit history to see if you've paid other debts on time. This helps us to determine your "willingness to pay." We also consider how long you've lived in the same place and held the same job. And we study your debt-to-income ratio, to compare your income with the amount you pay out in monthly expenses. This helps us determine your "ability to pay." The completeness and timeliness of the information you provide will have an impact on how quickly a decision is made.
The Next Step: The Mortgage Application
It's easy to make an appointment with a Dollar Bank mortgage representative - just call! During the call, the representative will review your financial situation and talk with you about the documents you need to supply.

Once you've gathered all the necessary documentation, your representative will set up an appointment at your home, where you work, or at one of our offices to complete the mortgage application. Or to apply online, click here. An application fee applies whether applying in person with your mortgage representative or online. When your application is complete, your loan package is turned over to a Dollar Bank loan processor, who reviews the information and prepares all the supporting documents.

Some applications are processed in no time at all while others, depending on their complexity, may take longer. The loan processor won't contact you during this time unless additional information is needed. Since we understand that you're anxious for an answer, we work as quickly as possible to come to a decision. If you need to check on the status of your application, or provide additional information, please call us at 1-800-820-6051. (If you've applied online, you can also check your status online.)

You will receive a letter indicating your credit approval or denial within thirty days after we receive a completed application. We will make every effort to get this letter to you as quickly as we can.
A Side-Step: Credit Denial

There are many reasons for credit denial. If your application is denied, we will explain the specific reason or reasons in writing. Sometimes, situations leading to credit denial can be rectified. If you believe that the circumstances leading to rejection of your application have been corrected, we encourage you to provide proof in writing with supporting documentation so that we may reevaluate your application.

If you have had small credit problems in the past, tell us upfront, and we'll listen to your side before making a decision. We also understand the difficulty of establishing a credit history so we have programs for applicants with limited credit history. Talk to us to see if we can help.

Our goal is to lend to borrowers who can repay us. This is a judgment, and judgments can be wrong. If you are denied and think that we have made an error in judgment, contact us.
A Step Forward: Credit Approval

If you've been approved, you will receive a commitment letter stating the amount of the mortgage, the interest rate, the term and payment amount, the date by which the loan must be closed and the number of "points" that you will need to pay at closing. (One point equals 1% of the mortgage amount.)

Your commitment letter will also list standard documents that you will need to bring to the closing. Your mortgage representative can explain how you should go about obtaining these documents. The letter will also provide you with the name of an attorney who will represent Dollar Bank at closing. You may, of course, also choose to bring an attorney to represent you.

To show your acceptance of the mortgage terms listed in the commitment letter, just sign it and return it within 30 days. After 30 days, Dollar Bank is not obligated to honor the commitment.
The Final Step: Closing

Before you can call the home your own, there has to be a closing. The closing agent will call to let you know what to expect and to give you a breakdown of closing costs. You will need to bring a certified or cashier's check in the amount of the total closing costs. The agent will bring the check for the mortgage proceeds.

At the closing, the property will be transferred from the seller's name to your name. You'll receive a copy of the settlement agreement, and shortly, you'll receive a copy of the deed in your name. You're now the proud owner of a new home! Let us be the first to congratulate you.
Are You Ready To Take The First Step?

When you're ready to take the first step toward home ownership, just give us a call. Your mortgage representative will work with you through each step of the application process right through to closing to ensure that everything goes smoothly. We have a wide range of mortgage choices and will be happy to help you find the one that fits your needs.

To try our mortgage calculator, click here.

The information presented in this publication is general in nature; it is not our intention to provide specific advice to individuals or a comprehensive discussion of the subject matter. We suggest that you consult with your financial or tax advisor, accountant or attorney to obtain specific advice or comprehensive information.
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