Shopping for a Mortgage
When shopping for a mortgage in Connecticut, it is important to look for a loan that meets your particular needs. You want to look for the loan and terms that are most favorable to your situation. For example, if you plan to live in the house for only three or four years, the closing costs and conditions such as a prepayment penalty (a charge for paying the loan off early) may be important to you, whereas if you plan to stay in the house for many years, the interest rate might be your main concern. The bottom line is: mortgages come in all shapes and sizes, and you owe it to yourself to get the best loan and terms possible. McCue Mortgage offers a full range of home loans for Connecticut homebuyers, and works closely to match our products with borrowers’ unique needs.
The next step is the loan interview where you will have the opportunity to meet with a loan originator. McCue Mortgage is very flexible about where and when the interview takes place. The bottom line is whatever is most convenient for you. You want to have all the necessary documentation with you when you meet with the loan representative. This would include:
- The sales contract for the house
- Your bank’s address, statements and account numbers
- Pay stubs, W-2 forms for the past two years, or other proof of employment and salary
- If self employed, balance sheets, tax returns, and a year-to-date profit and loss statement
- Information about debts, including loan and credit card numbers, and names and addresses of your creditors
- Evidence of rental or mortgage payments including canceled checks or money order receipts
- The first thing the loan originator will do is make sure you qualify for the loan for which you are applying.
Either over the phone or at an in-person meeting after, you will complete your loan application. The application provides the lender with all the information needed to evaluate the risk involved in lending you money. An important step at this point is to receive an estimate of the costs associated with the mortgage and ask the lender if you can “lock in the rate”. This is important especially if you feel interest rates may rise by the time your loan is closed. You will be required to submit documentation that backs up the information you’ve already given to your loan originator. You will also sign a lot of documents regarding the terms and conditions of your loan before it is submitted for processing.
While processing your mortgage, the lender will order an appraisal of the Connecticut property, request your tax returns and verify the information in your application. If mortgage insurance is required, the loan will also have to meet the underwriting requirements of the mortgage insurer.
The Commitment Letter
When your loan is approved, you will receive an approval letter from McCue Mortgage. This is the formal loan commitment. It states the amount you are borrowing, the loan type, the term of the loan, the points and the monthly principal and interest payment. It may also include some conditions that need to be met for the loan to close. If for some reason your loan is rejected, we will explain to you why it was rejected. We are willing to help you fix any problems before applying again.