Your Application

Can I apply for a loan before I find the new house?
Yes, applying for a mortgage loan before you find a home may be the best thing you could do! If you apply for your mortgage now, we´ll issue an approval subject to you finding the perfect home. We´ll issue a credit pre-approval letter you can use to assure real estate brokers and sellers that you are a qualified buyer. Having a credit pre-approval for a mortgage may give more weight to make an acceptable offer on the property.

When you find the perfect home, you´ll simply call your Pride Loan Officer to complete your application. You´ll have an opportunity to lock in our great rates and fees then and we´ll complete the processing of your request.

What is a credit Score and how does it affect my application/loan?
A credit score is one of the pieces of information that we´ll use to evaluate your application.

Credit scores are based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that helps a lender to determine the likelihood that you will repay the loan on schedule. The credit score is calculated by the credit bureau, not by the lender. Credit scores are calculated by comparing your credit history with millions of other consumers. They have proven to be a very effective way of determining credit worthiness.

Some of the factors that affect your credit score include: your payment history, your outstanding obligations, the length of time you have had outstanding credit, the types of credit you use, and the number of inquiries that have been made about your credit history in the recent past.

Credit scores used for mortgage loan decisions range from approximately 400 to 800. Generally, the higher your credit score, the better risk you present to the lender.

Using credit scores to evaluate your credit history allows us to quickly and objectively evaluate your credit history when reviewing your loan application. However, there are many other factors when making a loan decision and we never evaluate an application without looking at the total financial picture of a customer.

How will multiple inquires affect my credit Score?
An abundance of credit inquiries can sometimes affect your credit scores since it may indicate that your use of credit is increasing.

But don´t be to concerned. The data used to calculate your credit score doesn´t include any mortgage or auto loan credit inquiries that are made within the 30 days prior to the score being calculated. In addition, all mortgage inquiries made in any 14-day period are always considered one inquiry. Don´t limit your mortgage shopping for fear of the effect on your credit score. We just hope you will give Pride Mortgage the opportunity to complete the transaction.

Will I be charged for my credit report?
There is no charge to you for the credit information we´ll access with your permission to evaluate your mortgage application. You will only be charged for a credit report if you decide to complete the application process with Pride Mortgage as part of the application fee of $350.

How do you know what you need to underwrite my loan?
Pride Mortgage takes full advantage of an automated underwriting system that allows us to request as little information as possible to verify the data you provided during your loan application. We no longer need to verify every piece of data collected during the application. The automated underwriting system compares your financial situation with statistical data from millions of other homeowners and uses that comparison to determine the level of verification needed. In many cases, a single W-2 or pay stub can be used to verify your income or a single bank statement can be used to verify the assets needed to close your loan. Once your loan application is complete your Pride Loan Officer will submit it to our automated underwriting system which will evaluate your request and identify the documents needed to support the loan file. Its that simple.

I’m Self Employed. How will you verify my income?
Generally, the income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period. However, based on your entire financial situation, we may not need full copies of your tax returns.

We´ll review and average the net income from self-employment that´s reported on your tax returns to determine the income that can be used to qualify. We won´t be able to consider any income that hasn´t been reported as such on your tax returns. Typically, we´ll need at least one, and sometimes a full two-year history of self-employment to verify that your self-employment income is stable. Other options can be explored by your Loan Officer for No Income verification or No Ratio loan programs. A variety of programs are available, dependent on your credit score and the amount of equity you have in your home (for refinance transactions). Ask your Loan Officer for those options and details.

How will you calculate my overtime, commission or bonus income?
In order for bonus, overtime, or commission income to be considered, you must have a history of receiving it and it must be likely to continue. We´ll usually need to obtain copies of W-2 statements for the previous two years and a recent pay stub to verify this type of income. If a major part of your income is commission earnings, we may need to obtain copies of recent tax returns to verify the amount of business-related expenses, if any. We´ll average the amounts you have received over the past two years to calculate the amount that can be considered as a regular part of your income.

If you haven´t been receiving bonus, overtime, or commission income for at least one year, it probably can´t be given full value when your loan is reviewed for approval.

I am retired, how will my income and pension income be verified?
We will ask for copies of your recent pension check stubs, or bank statement if your pension or retirement income is deposited directly in your bank account. Sometimes it will also be necessary to verify that this income will continue for at least three years since some pension or retirement plans do not provide income for life. This can usually be verified with a copy of your award letter. If you don´t have an award letter, we can contact the source of this income directly for verification.

If you´re receiving tax-free income, such as social security earnings in some cases, we´ll consider the fact that taxes will not be deducted from this income when reviewing your request. As a result, your gross income will be increased as a percentage of your Social Security benefit.

Can money not reported on my taxes be considered?
Generally, only income that is reported on your tax return can be considered when applying for a mortgage. Unless, of course, the income is legally tax-free and isn´t required to be reported.

Some lenders may offer a stated income program, which means that you can be qualified for a loan based on the income you state rather than that which can be verified. Ask your loan officer for details.

How will rental income be verified?
If you own rental properties, we´ll generally ask for the most recent year´s federal tax return to verify your rental income. We´ll review the Schedule E of the tax return to verify your rental income, after all expenses except depreciation. Since depreciation is only a paper loss, it won´t be counted against your rental income. We actually credit you the depreciation!

If you haven´t owned the rental property for a complete tax year, we´ll ask for a copy of any leases you´ve executed and we´ll estimate the expenses of ownership.

How do you calculate and verify income form dividends and/or interest income?
Generally, two years personal tax returns are required to verify the amount of your dividend and/or interest income so that an average of the amounts you receive can be calculated. In addition, we will need to verify your ownership of the assets that generate the income using copies of statements from your financial institution, brokerage statements, stock certificates or Promissory Notes.

Typically, income from dividends and/or interest must be expected to continue for at least three years to be considered mortgage purposes.

Do I need to provide documents regarding my alimony, child support, or separate maintenance?
Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying this mortgage loan.

Will my part time job income be considered?
Typically, income from a second job will be considered if a one-year history of secondary employment can be verified.

What can you expect when you apply for a mortgage?
First, you´ll complete our on-line application.

The application will ask you questions about the home and your finances and takes less than 20 minutes to complete. As soon as you´ve finished the application we´ll review your request for quick approval. One of our Loan Officers will contact you to continue the process. Your Loan Officer is a mortgage expert and will provide help and guidance throughout the entire process. If you are purchasing a new home, the Loan Officer will also contact the Real Estate Broker or the seller so that they´ll know whom to contact with questions.

We´ll send you an application kit for your review, signatures and return.

The application kit will be sent to you immediately and will contain papers for you to sign and a list of items we´ll need to verify the information you provided about your finances during the on-line application. At this point you will need to pay your application fee.

From here, we´ll order the appraisal from a licensed appraiser who is familiar with home values in your area. Depending on your finances and the loan amount requested, different types of appraisals are used. Sometimes the appraiser will need to view the home. Sometimes they are able to do their evaluation from the street. Your loan officer will advise you with the type required. Title insurance will be necessary. If you´re purchasing a home, we´ll work with the real estate broker or seller to ensure the title work is ordered as soon as possible. If you are refinancing we´ll take care of ordering the title work for you. We´ll use the title insurance to confirm the legal status of your property and to prepare the closing documents.

Your Loan Officer will keep you informed every step of the way. We’ll contact you to coordinate your closing and the date/time.

After we received the application kit back from you and the appraisal and title work, we´ll contact you to schedule your loan closing. If you are purchasing a home, we´ll also schedule the closing with the real estate broker and the seller.

The closing will take place at the office of a title company or attorney in your area who will act as our agent. A day before closing, your Loan Officer will contact you to walk through the final information so that there won´t be any surprises at closing.

That´s all there is to it! You´re on your way to the most convenient home loan ever!

I´ve changed jobs recently
Having changed employers frequently is typically not a hindrance to obtaining a new mortgage loan. This is particularly true if you made employment changes without having periods of time in between without employment. We´ll also look at your income advancements as you have changed employment.

If you´re paid on a commission basis, a recent job change may be an issue since we´ll have a difficult time of predicting your earnings without a history with your new employer.

I just Graduated from School. How do I complete the application?
If you were in school before your current job, enter the name of the school you attended and the length of time you were in school in the "length of employment" fields. You can enter a position of "student" and income of "0."

What happens if my property’s appraised value comes in higher than the purchase price, can I use the difference towards the down payment?
Unfortunately, if you are purchasing a home, we´ll have to use the lower of the appraised value or the sales price to determine your down payment requirement.

It´s still a great benefit for your financial situation if you are able to purchase a home for less than the appraised value, but our investors don´t allow us to use this "instant equity" when making our loan decision.

I´m getting a gift from my parents, Can I use this towards the down payment?
Gifts are an acceptable source of down payment, if the gift giver is related to you or your co-borrower. We´ll ask you for the name, address, and phone number of the gift giver, as well as the donor´s relationship to you. Ask your loan officer for a gift letter that will need to be completed.

If your loan request is for more than 80% of the purchase price, we´ll need to verify that you have at least 5% of the property´s value in your own assets.

Prior to closing, we´ll verify that the gift funds have been transferred to you by obtaining a copy of your bank receipt or deposit slip to verify that you have deposited the gift funds into your account.

I´m selling my current home to move into this new home. What documentation will be required?
If you´re selling your current home to purchase your new home, we´ll ask you to provide a copy of the settlement or closing statement you´ll receive at the closing to verify that your current mortgage has been paid in full and that you´ll have sufficient funds for our closing. Often the closing of your current home is scheduled for the same day as the closing of your new home. If that´s the case, we´ll just ask you to bring your settlement statement with you to your new mortgage closing. Your loan officer can help you coordinate the entire transaction.

I am relocating for job purposes. What do I need to know to complete the application?
Congratulations on your new job! If you will be working for the same employer, complete the application as such but enter the income you anticipate you´ll be receiving at your new location.

If your employment is with a new employer, complete the application as if this were your current employer and indicate that you have been there for one month. The information about the employment you´ll be leaving should be entered as a previous employer. We´ll sort out the details after you submit your loan for approval.

I´ve co-signed a loan for another person. Should I include that debt here? / I’ve co-signed a loan for another person. How do you handle this debt?
Generally, a co-signed debt is considered when determining your qualifications for a mortgage. If the co-signed debt doesn´t affect your ability to obtain a new mortgage we´ll leave it at that. However, if it does make a difference, we can ignore the monthly payment of the co-signed debt if you can provide verification that the other person responsible for the debt has made the required payments, by obtaining copies of their cancelled checks for the last six months.

I have student loans that aren´t in repayment yet. Should I show them as installment debts? / I have Student loans that aren’t in repayment yet. Do I need to show them as liabilities?
Mortgage guidelines require that you are obligated for the minimum payments on any student loans, whether or not you are in repayment. You will be asked to provide documentation from your student loan lender that discloses what your minimum monthly will be when repayment commences. If you are not sure exactly what the monthly payment will be, enter an estimated amount.

How will a past bankruptcy or foreclosure affect my ability to obtain a new mortgage? / How will a bankruptcy or foreclosure affect my ability to get a mortgage?
If you´ve had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy or foreclosure was caused by situations beyond your control, we will generally require that two to four years have passed since the bankruptcy or foreclosure. It is also important that you´ve re-established an acceptable credit history with new loans or credit cards. Ask your Loan Officer for more details on bankruptcy and what you can do to re-establish your good credit standing.

What is an installment debt?
An installment debt is a loan that you make payments on, such as an auto loan, a student loan or a debt consolidation loan. Do not include payments on other living expenses, such as insurance costs or medical bill payments. We´ll include any installment debts that have more than 10 months remaining when determining your qualifications for this mortgage.