Home Purchase Resources
What you will need
In order to qualify for a home loan, you will need:
- A stable income
- A good credit history
- A down payment – Generally between 5-20 percent of the purchase price
- Income Verification forms (W-2, 1099, or Tax Return)
- Two months of bank statements
- A third-party appraisal of the home you wish you purchase
Loan Pre-Qualification Process
- Contact a Bay Equity loan officer and complete an online application
- Sign the credit authorization form.
- Submit a current pay stub covering the most recent full month.
- Submit your W-2, 1099, and federal tax return forms from the past two years.
- Submit a copy of your driver’s license and social security card.
Lock in your interest rate
As rates are constantly changing, it is important to lock in your interest rate to avoid a surprise increase if the market rises.
The Approval Process
There are three major steps that go into the approval process with Bay Equity.
- Appraisal – An impartial third-party appraisal of the home you are purchasing is necessary to ensure that you are paying fair market value for this home.
- Title and Escrow – Once you and the seller have signed a mutually acceptable purchase agreement, you will be asked to place your earnest money while the documents and closing process is completed.
- Underwriting – Each loan is sent to an approved underwriter who reviews the application, documents, financial information, sales contract, appraisal and title to be sure all the necessary criteria are met and the loan is ready for approval.
During closing or “settlement”, you will sign the final mortgage document and the property will be legally transferred to you. Some of the documents that you will sign include:
- The Mortgage Note – A legal document that provides evidence of your debt and formal promise to repay the loan.
- The Mortgage or Deed of Trust – The security investment that you give the lender that protects the lenders interest in your property. When you sign the deed, you are giving the lender the right to foreclose on your property if you fail to pay the mortgage according to set terms.
- The final Truth-in-Lending Disclosure – This document reflects any change to your mortgage since your application date.
- Affidavits and Declarations – Statements declaring something to be true, such as the property will be your primary place of residence.
- The HUD-1 Statement – Discloses the final details of your mortgage such as a statement of charges and your final loan terms.