The Home Equity Process
Guide to the steps involved.
Origination - Visit a loan advisor to determine the best loan to fit your financial needs, and submit the application. You may also apply online.
Processing - During processing, we will communicate what type of appraisal, title, and additional documentation we will need to evaluate your loan. The quicker we receive the requested documentation, the quicker your loan can move through this stage.
Underwriting - An underwriter will review your loan to evaluate its approval. Additional supporting documents may be needed.
Clear to Close - The Clear to Close indicates that all processing and underwriting conditions have been met, and your loan is approved! Bank regulations may require that you receive your closing documentation 3-7 days before your closing may be scheduled.
SPECIAL REMINDER ABOUT PROPERTY TAX TIME
Application document checklist.
- Most recent paystubs and most recent W-2
- SSI, Disability, Investment Income, Pension Award Letters, 1099's or direct deposit statement if appropriate
- Provide three consecutive statements with deposits for the stability of income
- Federal Personal Tax Returns for the past two years if self-employed, have additional income, or rental income (with rental also need mortgage statements)
- Self-employed borrowers must provide 2 years business federal tax returns including all schedules & K-1’s -Self-employed borrowers must provide most recent Profit and Loss statement
- Verification of any other income – documentation (child support, alimony, etc. if applicable & using to support obligation)
- Child support and/or alimony obligations – if applicable
Employment and Residentce history for all borrowers for the last two years
Existing mortgage information with name of company, an outstanding balance, payment and escrow
- Current mortgage statement required
If no Escrow – Verification of all monthly property expenses required:
- Real estate taxes (from the tax bill, website, HUD)
- Homeowners insurance (declarations page with annual premium and expiration date)
- Homeowners Association dues (if applicable – annual statement or letter)
- Flood insurance (if applicable – from homeowners insurance information)
Certificate of Trust document(s) is required if the property is titled in a trust
- Do not send the trust documents
Debt Consolidation Information (when appropriate):
- Copies of all recent statements past 30 days for accounts to be consolidated
- Statements must include account holder name, current amount, full account number, and address to mail payoff