Doing Business with BalboaMortgage.com

You will need to know not only what you need to get together in order to qualify and receive a loan through us, but it will also be important for you to know how we operate. Please read the following information below:

• Documents Needed for Approval

• Order of Getting Home Financing

 

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Documents Needed for Approval

Please review our various Loan Documentation Types page to understand the type of income / asset / employment documentation you will be requesting for your loan application. Consult your mortgage advisor regarding which types will be best for you: 800-957-7714. The type of documents you will put together for us initially will depend on your employment status, the documentation type you need or want, and the type of transaction you are doing:

What are you doing?

 

Buying a home

1. Purchase Contract (if a home is under contract)
2. Realtor contact information
3. Contact information for any other applicable third parties: appraisers, inspectors, surveyors, insurance agents, HOA manager

Refinancing a Home

1. Recent Moorage Statement(s)
2. Home Owner Insurance declarations page
3. Copy of note and settlement statement for 1st or 2nd mortgage if you: 1) have a 1st and a 2nd mortgage, but are only refinancing one of them, or 2) have owned the home less than 1 year
4. Contact information for any other applicable third parties: appraisers, inspectors, surveyors, insurance agents, HOA manager

Which are you?

• Wager Earner
• Self Employed
• Commissioned
• Both Wager Earner & Commissioned
• Retired

*These minimum document requirements are based on a full documentation loan

Wager Earner Income Documents

• Income- 2 years W2, 2 years of personal tax returns, and one full-month pay stubs
• Assets- recent banks statement or money asset statement, and/or verification of deposits
• Employment- contact information for your employer if not present and legible on the pay-stub or W2.
• Other (if applicable)- Divorce decree, bankruptcy discharge papers, letters verifying deferment for student loans, documentation showing debts not owed, letter of credit explanation, letter of gaps in employment history explanation

Self Employed Income Documents

• Income- 2-3 years of personal and/or business tax returns, and/or 1044's
• Assets- recent banks statement or money asset statement, and/or verification of deposits
• Employment- minimum 2 years business licenses, CPA letter.
• Other (if applicable)- Divorce decree, bankruptcy discharge papers, letters verifying deferment for student loans, documentation showing debts not owed, letter of credit explanation, letter of gaps in employment history explanation

Commissioned Income Documents

• Income- 2 years 1099, and/or 2 years of personal tax returns, and one full-month pay stubs
• Assets- recent banks statement or money asset statement, and/or verification of deposits
• Employment- contact information for your employer if not present and legible on the pay-stub or 1099.
• Other (if applicable)- Divorce decree, bankruptcy discharge papers, letters verifying deferment for student loans, documentation showing debts not owed, letter of credit explanation, letter of gaps in employment history explanation

Wager Earner & Commissioned Income Documents

• Income- 2 years 1099 and W2, and/or 2 years of personal tax returns, and one full-month pay stubs
• Assets- recent banks statement or money asset statement, and/or verification of deposits
• Employment- contact information for your employer if not present and legible on the pay-stub or 1099.
• Other (if applicable)- Divorce decree, bankruptcy discharge papers, letters verifying deferment for student loans, documentation showing debts not owed, letter of credit explanation, letter of gaps in employment history explanation

Retired Income Documents

• Income- 2 months bank statement showing deposits, and award letter or note for receivable regarding income source, and/or 2 years of personal tax returns all schedules
• Assets- recent banks statement or money asset statement, and/or verification of deposits
• Other (if applicable)- Divorce decree, bankruptcy discharge papers, letters verifying deferment for student loans, documentation showing debts not owed, letter of credit explanation, letter of gaps in employment history explanation

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Order of Getting Home Financing

This is the general process of how your loan process will work with us:

Initiating the Loan Inquiry Process

1. Good Faith Estimate (GFE): We email (or issue in person if in Utah) a preliminary GFE to you; you will review, sign and fax back to us a copy upon agreement of the initial terms of the loan
2. Pre Qualification: we order a tri-merged credit report, email a copy to you, and issue a pre qualification based on the credit and preliminary application information taken over the phone.

Working towards getting a loan Pre-Approval

1. Initial Loan Package: We will email or courier by mail a loan package out to you (unless in person- in which case you will need to set up an in-office appointment and bring documents and ID with you). You will review its contents and then fax and/or courier the package to us signed and dated appropriately. Additionally you may send any or all needed documentation needed for pre-approved underwriting with the package.
2. Appraisal and Preliminary Title Report: The appraisal and title report are both ordered the day the initial loan package is sent out or done in person. The appraisal will need to be paid up front upon inspection to the appraiser directly.
3. Rate Lock: We only lock interest rates once you have committed to us you are willing to move forward with the application. Usually this occurs at the time of receiving the loan package back in our possession. Additionally we will often require a rate-lock form be signed and sent back to us in affirmation of the interest rate lock and duration.
4. Pre-Approval Submission: Once we have all required documentation for underwriting, including an adequate appraisal and title report (unless you are doing a purchase and the property is still to be determined), we submit your full application for pre-approval. Underwriting for a pre-approval can varies in time, but usually takes 1-3 business days. The underwriter then issues a conditional approval based on their findings of the application and documentation submitted.

Preparing for Closing and Signing

1. Final Approval (Commitment to Lend): In order to have a clear-to-close the loan and send the lender's instructions to the title company to sign with the escrow agent/attorney/notary, all stipulations and conditions musts be met the underwriter has requested in the pre-approval. The process of actually preparing the documents and instructions to be sent to the title company usually takes 1 business day.
2. Preliminary Settlement Statement: Once title has the instructions from the lender they draw up a preliminary settlement statement that revisits the fees found on the initial Good Faith Estimate. We email and/or review the items found on this form with you to ensure accuracy and to eliminate surprises at signing. If there are incorrect items we get them corrected until it is ready for the final issue of the HUD-1 Settlement Statement.
3. Signing at Closing: You will be contacted by a processor when the final signing will occur. We will coordinate with you and the escrow agent/attorney/notary when and where the signing will take place. Often we have signing take place right in your own home for convenience. For purchases a local title company will often be selected so the real estate agent can also attend if they choose. For long-distant closings we are available by phone to answer any additional questions you may have while signing.

Right of Precision / Funding / Dispersing Funds

1. Right of Rescission: For purchases and investment refinances the lender must wait 1 day before funding. For refinances the lender must wait 3 days before funding.
2. Funding: Pending all funding stipulations are met by the title company, broker (if applicable), and borrower, the lender usually wires all funds to the title company one day following the Rescission period.
3. Dispersing Funds: In order for the title company to disperse funds to the applicable parties involved (i.e. the borrower, the seller, broker, title, etc.) they are usually required to record the note and debt instruments with the local county court house first. Disbursing the funds often happen on the same day of recording. The funds can be wired directly to the your bank account if arrangements are made previous. Otherwise a check will be made out to you which can be picked up directly or mailed out to your residence.

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