Home Buyer

Getting Started:

American Bancshares Mortgage is here to help you make your dream of homeownership a reality; it all begins with our online stress-free mortgage application.

Buying or refinancing a home does not have to be stressful, we have taken out the stress and replaced it with joy- at American Bancshares Mortgage the mortgage application process is joyful!

The best way to start the process is to gather all of your financial documents. Next, speak to your Mortgage Loan Originator and complete your online mortgage application. Keep in mind that additional documents may be needed later in the process.

1. Online Application

   When completing the online application be as thorough as possible. If you have questions reach out to your trained Mortgage Loan Originator for guidance, discuss homeownership goals, and expectations.

   Once we have a complete loan application we will provide you with your loan estimate. The loan estimate will be provided to you within 3 days of us receiving your complete loan application. We also suggest that you go to the Consumer Finance Protection Bureau website and become familiar with your rights and protections as a homebuyer. The CFPB was created to protect you and your interests.

2. Confirmation Of Intent To Proceed

   Once we have electronically received your intent to proceed your loan will go through our initial quality control set up. At this stage, the loan opener will review your credit file and order services, such as appraisal, 4506’s, verifications of employment, and assets.

3. Processing

   Once the loan reaches the processing milestone, the loan processor will ask for additional documents and letters of explanation. It is very important that the client works closely with the loan processor, and returns the requested documentation as soon as possible. The reason the processors ask for additional documentation is that every loan needs to meet specific eligibility criteria for loan approval. The processors are junior underwriters, they know the requirements of the loan program and assure the loan file has all the data required to receive final approval from the underwriter.

4. Underwriting

   The underwriter reviews the complete loan file- credit, appraisal, title, income, assets. Upon complete review the underwriter certifies that the loan meets eligibility criteria to receive loan approval.

5. Approval

   This is your last step prior to closing. You will receive a closing disclosure 3 days prior to the closing date, upon confirmation of receipt of closing disclosure we can work with your attorney or title company to schedule your closing.

6. Closing

   Congratulations are in order, this completes the last milestone of the Loan Manufacturing Process!

Documentation Checklist

The following information is usually required during the loan process. Not all documents may be required for every situation. If you have any questions our staff will be happy to assist you.

Identification Documents:

• Copy of your Social Security card
• Copy of your Driver’s License
• Copy of your Resident Alien Card, if not a US Citizen

Income Documents:

• Your IRS 1040 Tax Returns for the most recent two years, include all schedules and attachments
• If self-employed- year to date profit and loss statement, plus signed returns for the last two years
• Your IRS Form W2’s and/or 1099’s for the most recent two years
• Most recent consecutive 30 days’ pay stubs (if applicable)
• If you receive any other income provide information- pension, social security, child support, stocks, bonds, dividend
• Name, address, telephone numbers for all employment held during the past two years. If a gap of employment greater than 30 days exists, detail dates and reason for gap

Asset Documents:

• Bank statements for the most recent two months be sure to provide all pages front and back
• Provide source of funds for any large deposits not part of your employment income
• Investment account statements for the past two months (if applicable)
• Retirement account statements for the past two months (if applicable)
• Copy of escrow check pursuant to a Purchase and Sale Agreement (if applicable)

Credit Documents – all pages, front and back, necessary:

• Copy of Bankruptcy Discharge (if applicable)
• Copy of Divorce Decree and Settlement Agreement (if applicable)
• Copy of Child Support document (if applicable)
• Copy of Litigation (if applicable)

If you currently own Real Estate:

• Mortgage statement
• Home insurance policy information
• Home equity statement (if applicable)
• Copy of most recent Survey (if applicable)
• Owners Title Policy
• Homeowner’s/flood insurance policy

Miscellaneous:

• Copy of fully executed Purchase and Sale Agreement with all addendums and copy of earnest money deposit
• Certificate of Eligibility, if you are applying for a VA loan
• Letters of explanation for any derogatory credit events such as foreclosure, short sale, judgments, collection and / or late payments
• Landlord information for the past two years: Name, Mailing address, Phone Number, Email Address
• Paper Trail for Gift funds: Talk about down payment with your mortgage loan originator- if part of the money for your down payment or closing cost is coming from a gift discuss with mortgage loan originator. There are specific rules and instructions on how to handle gift funds
• Additional monthly debt that is not reported on your credit report: IRS payments, child support, private loans, etc

Loan Process Tips:

• When asked for documents always provide them promptly, provide all pages front and back, never cross out or alter the documents in any way
• Documents often expire, therefore you might be asked for updated documents during the process
• Do not apply for new credit, or make huge purchases during the loan process
• Start shopping around for Homeowners and Flood insurance quotes if applicable
• All bank statements will be scrutinized and any funds outside of employment income will be questioned and an explanation of the source will be requested

To receive a loan estimate you need to submit only six key pieces of information:

• Your Name
• Your Income
• Your Social Security Number
• Address of the home being purchased or refinanced
• An Estimate of the home’s value
• The loan amount you want to borrow