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Mortgage | Home Equity
 

Applying for a Mortgage

When you are ready to apply for a mortgage, call our Home Loan Hotline at 1-800-62-APPLY (1-800-622-7759), call your nearest mortgage office, or call 1-800-537-8705.

A mortgage specialist will guide you through the process and help answer any questions you might have. In fact, we can handle the entire application in as little as 30 minutes right over the phone.

There may be terms unfamiliar to you as you apply for your mortgage. Because you may be wondering what they mean, we have prepared a Glossary of the most common terms used during the mortgage financing process. It is important that you completely understand these terms before you begin the mortgage application process. Your mortgage specialist can explain these in detail and provide you with more information.

There are three main steps during the mortgage loan process – application, evaluation (or underwriting) and closing:

1. Application

  • You complete the loan application and pay a loan fee, if it is required. Some of the commonly-requested documents to make loan application are:

    • Two years’ W-2s and one month’s current paystubs+
    • Employment addresses (2-year history)
    • Residence address – last 2 years landlord name and address (if applicable)
    • Last 12-months’ mortgage history (if applicable)
    • Latest two months’ bank statements
    • Open loans – addresses, account numbers, balances and monthly payment or most recent statement, if available
    • Real estate owned, including loan number, addresses, balance and monthly payment or most recent statement, if available
    • Separation, divorce or bankruptcy information at application (if applicable)
    • Contract of sale and legal description
    • Check for credit report and appraisal
  • The lender begins processing your application.
  • The lender requests an appraisal, credit report, and verification of employment and financial information such as bank accounts.
  • The lender provides an initial Truth in Lending Disclosure (Reg. Z) that estimates your loan costs.
  • The lender gives you specific, written loan information and a Good Faith Estimate of closing and related costs.

2. Evaluation (Underwriting)

  • The lender evaluates your application and supporting documentation and makes a decision on the loan.
  • If your loan is approved, lender issues a Commitment.
  • If the loan is not approved, the lender provides written explanation for not approving the loan, and you can begin corrective steps.

3. Closing

  • You will be required to provide proof that you will maintain appropriate homeowner’s insurance on the home you are financing.
  • The lender sends funds to the attorney or closing agent.
  • You sign the closing documents, the seller is paid, and you get title to the home.
  • You make monthly payments on your home until the loan is repaid.

Processing of Your Mortgage Application

The HSBC mortgage team consists of specialists who make sure your application is complete, determine if you qualify for the mortgage, perform quality control checks, and ready your loan for closing. At HSBC, our Mortgage Operations Specialists will assist you through the entire process to ensure there are no unnecessary delays or surprises.

The decision to grant a mortgage is based on your expense-to-income ratios, work history, credit history, assets, and the appraisal of the home. Underwriters are flexible, so don't be discouraged if your application does not meet all of the standards. Underwriters are trained in weighing compensating factors. For instance, stable employment and/or good credit can compensate for high ratios. When your loan has been approved, you will receive a commitment letter notifying you of this approval. The commitment letter provides the details of the transaction, including the mortgage amount, interest rate, points, etc.

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