Qualify for a Mortgage at our NJ Mortgage Company
New Jersey Mortgage Refinancing information from our mortgage company
Buying a home is for most people a life changing event. It’s both a large investment and an opportunity to live the life you envision for yourself and your family. The process of finding the right home and the right mortgage company can be quite an adventure.
At Jersey Mortgage Company in NJ we recognize how nerve-wracking making such a hefty investment in your future can be. We work with you side by side, guiding you through every step of the process so it is as worry-free and simple as possible. You’ll coordinate directly with your own home loan specialist from the day you fill out an application to the day you close.
We’ll help you determine what type of mortgage you qualify for by assessing your debt-to-income ratio; how much you can realistically afford to pay for a new home; and how to tidy up your credit, should it be necessary. This type of “hands-on” approach is just part of how we do business, and why we have maintained an unrivaled reputation for honesty and integrity through the housing market’s fits and starts.
6 steps of mortgage qualification
1. Mortgage qualifications
- Employment history
- Cash available for closing and the source of those funds
- Credit history
2. Documents required for income verification
- A current paystub from employer
- W2s from employer from last two years
- Written verification of employment from the employer
3. Verification of funds to close
In order to close we’ll need to verify that you have adequate assets (cash, stocks, bonds, etc) to fund your closing. To do this, we need:
- Copies of the last 3 months of bank depository or investment company statements
- Written verification of deposit from the depository institution
- For a purchase, a copy of the sales contract on any real estate to be sold
If you are refinancing your mortgage, you will need enough reserves to pay your mortgage, insurance and taxes for approximately 3 months.
4. Credit report check
A credit report will be requested to check for any credit obligations and pay records, and any collections, judgments, liens, repossessions or related debts.
5. Confirmation of property value
Property appraisals use three approaches during the evaluation analysis, with the most emphasis placed on the Market approach.
- Cost approach: The value of the land plus the cost of the improvements less depreciation
- Market approach: Recent sales in your neighborhood
- Income approach: Determines the value based of the rental income that can be derived from the property
Most appraisals begin with a physical inspection of the property by a professional appraiser who measures and inspects the property, notes the overall condition and the surrounding neighborhood. After the inspection, the appraiser locates both the sales activity and current listings in the area, and then prepares a report that values the property and summarizes any important findings.
6. Confirmation of property value title search
During loan processing, a title search will be performed on the property. This search will reveal the legal description, owner of record and any outstanding liens or encumbrances. Liens can be property taxes, mortgage loans, and judgments, while encumbrances may be road maintenance agreements, right-of-way and utility easements.
After the search has been completed, the title company will submit a preliminary title report to the lender with the findings. After the loan is closed, the title company will prepare an ALTA (American Land Title Association) title policy that reflects the new mortgage loan as a lien on the property. If a transfer of title occurred, the new owner usually obtains a title policy as well.