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 |
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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.
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| The Next Step: The Mortgage Application |
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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.
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| A Side-Step: Credit Denial |
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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.
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| A Step Forward: Credit Approval |
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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.
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| The Final Step: Closing |
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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.
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| Are You Ready To Take The First Step? |
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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.
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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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Contact Us
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Dollar Bank representatives are available Monday through Friday from 8:00 AM to 8:00 PM and Saturday from 9:00 AM to
3:00 PM
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