The Loan Process
STEP 1

If you have good credit, the first thing to do is get an estimate and Pre-Qualification analysis. This is a simple process that can easily be completed online by completing the Pre-Qualify form.

  • This is a short form that should only take a few minutes to complete. It will give us enough information to pre-qualify you and/or complete & email you an estimate.
  • The estimate will detail all the closing costs and monthly payment for the loan.
  • We do not pull your credit report for this pre-qualification. Your credit report will be reviewed when you submit you loan application. No social security numbers are asked for on this form.
STEP 2

If you like the estimate(s) we email you, the next step is to submit your loan application.

Submitting Your Loan Application
The Loan Application, known as the 1003, is a five page form that you can complete online.

  • Page 1 - Information about the loan, the property and the borrower(s), including your name(s) and current address, rental or mortgage history for the last 2 years. and their .
  • Page 2 - Your employment history for the last 2 years, your gross monthly income and your monthly housing expenses.
  • Page 3 - Your assets, liabilities and real estate owned. This page includes all your bank accounts, all your asset accounts (Stocks, Bonds, Retirement accounts, etc.), the value of your autos, household goods, etc. and all your liability accounts (credit cards, auto loans, mortgages, alimony/child support, etc.). You also need to list any real estate you currently own.
  • Page 4 - Declarations (list of questions) and Government Monitoring (race and sex).
  • Page 5 - There are several page 5's, including the continuation sheet for additional information, and additional pages should you need more room for extra assets, liabilities and/or real estate owned.

Click here for a general list of information needed to complete your loan application.

It is very important to supply complete and accurate information. The better you do this the better we will be able to assess your loan application and advise you.

STEP 3

Once we have received your online loan application the data will be entered into our computers, reviewed and then submitted for Automated Underwriting. We will contact you for any missing data or questions we might have concerning your loan application.

Loan Approval using Automated Underwriting System(AUS)
The loan process has and is changing a lot. Most all of our conforming, VA and Jumbo loans are now approved using the latest automated underwriting systems(AUS). These are online computerized systems that analyze your loan and credit information and issue a conditional approval. This type of approval has many advantages:

  • Higher Qualifying Ratios - Allowed on many loan approvals because these systems adjust for the higher ratios with other stronger factors, i.e., great credit and/or strong assets after closing and/or long term employment history, etc.. Instead of just looking at your income to debt ratios these systems look at the whole picture.

Once your automated approval is received your complete loan application, including all disclosure forms will be prepared for you to sign them. We will overnight or deliver your loan package to you for review and signatures, along with copies for your records. The loan package will include a written list of documents needed to verify the information used for the AUS Approval and a return overnight envelope for you to return your signed papers and documents to us. Please don't delay in returning your loan package to us. This paperwork is time sensitive and must be returned promptly.

Note
Should your loan not qualify using the automated approval process it is very possible that we can approve your loan using traditional manual underwriting. The process is a little longer and full documentation is required. Reasons for using manual underwriting can be as simple as correcting inaccurate information on your credit report to more serious credit issues that need to be reviewed by a live underwriter. In any case we will advise you accordingly. See "Loan Approval for Traditional Underwriting" below for more details.
Upfront Fees

Texas One Mortgage only charges for the credit report fee, normally $50.00, on most loans. The appraisal fee, $405 on most conventional loans, $400 on VA loans, $665+ on non-owner properties and from $405 up on Jumbo loans, depending on the size and complexity of the home will be collected from you prior to ordering the appraisal. We collect both the credit report and appraisal fees upfront on most of our VA loans. That's it! If your fees will be different you will be advised as soon as we know what the fees will be so you may approve the cost.

If the surveyor requires payment upfront, we will need to collect the cost from you prior to ordering the survey.

STEP 4

Once we receive your signed loan papers and supporting documentation we will complete the approval process.

Here is a general list of how that goes
  • Setup and review your loan package and documentation.
  • Order appraisal and title commitment.
  • Verifying employment, any VA loan requirements, etc.
  • The interest rate on most loans can be locked once we have the completed appraisal.
  • Submit loan for final approval.
  • If a survey is required it is normally order through the title company that will be closing this loan.
  • Once final loan approval is received we will order documents for closing and schedule your closing time.
STEP 5

Loan Closing. Purchase loans will normally close at a title company chosen by the seller. Refinance loans are closed at a title company convenient to you. We will coordinate that with you during the loan process.

Hélène normally goes to all closings in the Austin area. We will be available by phone for loans closing out of town so you may call us during your closing if you have any questions or concerns.

Loan Funding. Purchase loans normally fund the same day. Refinance loans fund after the 3 day right of rescission. (Example: If your refinance loan closes on Monday, it will fund on Friday.)

Your Done. . .

The Credit Report

  • An in-file credit report is a report secured from the three national credit reporting agencies (EXPERIAN, EQUIFAX and TRANSUNION). This is an inexpensive report costing about $20.00, is payable in advance and is non-refundable. The cost of the in-file report will be credited towards the complete credit report(RMCR) should it be necessary for loan approval. A copy of this report can be supplied to you upon request. Check your Good Faith Estimate for these fees.
  • The complete credit report (RMCR) costs $65.00 and is received from the same three national credit reporting agencies, however, the accounts on this report are updated for accuracy. The credit reporting agency will interview the borrower(s), employers and landlords, if possible, in order to supply accurate and complete information. A search of court records for judgments, etc. will also be conducted. At this time any errors or problems with the credit report can be addressed and corrected. The cost of the in-file credit report is credited towards the cost of the RMCR.
  • CREDIT SCORES - Lenders require a minimum middle credit score of 620. Some loans require higher scores. VA loans require a minimum middle credit score of 620 for most VA loans.
Credit scores provide lenders with a numerical risk assessment, based on your past credit history, to determine the probability of future credit problems on the loan. The higher the credit score number is the better your credit history is and the less likely they are to have problems on your loan.

The Appraisal

A standard 1004 single family appraisal now costs approximately $405.00. Starting May 1, 2009, the HVCC (Home Value Code of Conduct) law requires appraisals to be ordered through a special Appraisal Management Company(AMC) for all conventional conforming loans. We are not allowed to pick the appraiser or have any contact with the appraiser. All contact must go through the AMC. The AMC will randomly assign the appraiser. This, along with a new form(1004MC) that is now required, has driven the price of appraisals higher and made the appraisal process longer and less accurate. We are not pleased with the new system, but are required by law to follow it.

Texas One Mortgage collects the appraisal fee prior to completing the appraisal. Any difference in the amount collected up front and the final appraisal cost will be credited or charged to you at closing. Appraisers must be state licensed.

VA Appraisal fees are set by VA at $400 for a standard 1 unit primary residences. The appraiser is assigned by VA for each case. VA appraisers must be state licensed and approved by VA. Some VA appraisals are higher in cost due to mileage charges or if it is a Jumbo loan. The VA appraiser will notify us if additional costs are required and we will notify you of those costs.

Investment properties, also called Non-Owner Occupied properties are $665 to 755. The additional cost is due to the requirements for an operating income statement, rental comparable properties, etc.

Large properties, rural properties, jumbos, duplexes, etc. can cost $450.00 or more. If we feel the cost will be higher than $405.00, we will advise you before proceeding.

Loan Approval using Traditional Underwriting

This means we will have to document the file more thoroughly. For example, two months of bank statements instead of one month. A full RMCR credit report will be required. Written verifications for deposit accounts, employment, etc. may be required. Generally, the traditional underwrite takes several days longer and can cost a little more. A full RMCR credit report is usually required, $65 instead of $20. A full appraisal will be required, $405. Our fees will remain the same for either a traditional or automated underwrite.

Usually, this method of underwriting is used when erroneous information is on the credit report which needs to be corrected or other circumstance of your loan require a human touch and can't be evaluated properly by the automated computer models that are used in the automated underwriting systems.