Loan Process

Why an Airplane Analogy for a Mortgage Process? Read more. To learn more about the benefits of working with a Cederholm Mortgage Advisors at Edge Home Finance your can check out why you should choose us.

Preparing properly on the front end (pre-flight check), saves you valuable time and eliminates potential problems and stress on the back end (in flight). That’s why we typically begin the process with a quick conversation to allow us to get to know you and your situation, answer any questions you may already have, and ask a few ourselves to determine how we can best help and serve you. 

Our mortgage pre-approval process is just three easy steps:

READY. The First Step is to complete an application, which can be completed online or over the phone, depending on your preference. To Apply  Online, just click the “Apply Now” button on the upper right side of this webpage. It will only take about ten minutes and you’ll be asked about your job, income, and any assets, etc. You know, things you already know.

SET. The Second Step is the collection of any key documents that may help determine fit and approve you for the right loan programs available for you.

GO. In the Third Step we will schedule a Buy or Refi with Confidence Pre-Approval loan consultation workshop with you to review options, loan programs, etc to determine together what will be right for your personal situation.

BONUS: Please review these Client Resources for helpful tips and resources.

We strongly recommend going to Optoutprescreen.com to avoid any unwanted credit solicitations (trust us, it is not coming from us, we do not sell your information to third parties). This is the credit industry’s official site to opt-out and block these “trigger lead” telemarketer solicitations when buying a home or refinancing.  It’s FREE and only takes 5 minutes to prevent the calls! 

Below is a list of documents that are required by any lender when you apply for a mortgage. However, every situation is unique and you may be required to provide additional documentation. So, if you are asked for more information, please help us (we don’t ask for it unless required) and provide the information requested as soon as possible. It will help speed up the application process for you.

Your Property:

• Copy of signed sales contract including all riders
• Verification of the deposit you placed on the home
• Names, addresses and telephone numbers of all realtors, builders, insurance agents and attorneys involved
• Copy of Listing Sheet and legal description if available (if the property is a condominium please provide condominium declaration, by-laws, and most recent budget)

Your Income:

• Copies of your pay-stubs for the most recent 30-day period and year-to-date
• Copies of your W-2 forms for the past two years
• Names and addresses of all employers for the last two years
• Letter explaining any gaps in employment in the past 2 years
• Work visa or green card (copy front & back)

If self-employed or receive commission or bonus, interest/dividends, or rental income:

• Provide full tax returns for the last two years PLUS year-to-date Profit and Loss statement (please provide complete tax return including attached schedules and statements. If you have filed an extension, please supply a copy of the extension.)
• K-1’s for all partnerships and S-Corporations for the last two years (please double-check your return. Most K-1’s are not attached to the 1040.)
• Completed and signed Federal Partnership (1065) and/or Corporate Income Tax Returns (1120) including all schedules, statements, and addenda for the last two years. (Required only if your ownership position is 25% or greater.)

If you will use Alimony or Child Support to qualify:

• Provide divorce decree/court order stating amount, as well as, proof of receipt of funds for last year

If you receive Social Security income, Disability or VA benefits:

• Provide an award letter from agency or organization

Source of Funds and Down Payment:

• Sale of your existing home – provide a copy of the signed sales contract on your current residence and statement or listing agreement if unsold (at closing, you must also provide a settlement/Closing Statement)
• Savings, checking or money market funds – provide copies of bank statements for the last 3 months
• Stocks and bonds – provide copies of your statement from your broker or copies of certificates
• Gifts – If part of your cash to close, provide Gift Affidavit and proof of receipt of funds
• Based on information appearing on your application and/or your credit report, you may be required to submit additional documentation

Debt or Obligations:

• Prepare a list of all names, addresses, account numbers, balances, and monthly payments for all current debts with copies of the last three monthly statements
• Include all names, addresses, account numbers, balances, and monthly payments for mortgage holders and/or landlords for the last two years
• If you are paying alimony or child support, include marital settlement/court order stating the terms of the obligation
• Check to cover Application Fee(s)

At the end of your application, you will be provided with an customized “Documents Needed” list based on your application responses to securely upload into your loan app portal.  These items are required by any lender as they are part of national guidelines depending on your loan type. We review these items and issue you a confident pre-approval letter so you can begin shopping for your home or for refinance.

Uploading Documents: When uploading documents national lending guidelines with any lender do not allow certain forms and formats of documentation and corrected documentation will be required for underwriters to approve your loan.  Our goal is to save you time and remove unnecessary delays or extra work for you later for processing your loan. The faster can get us the documents, the faster we can complete your pre-approval.

Helpful Tips for Uploading & Submitting Documents:

• AVOID Taking a screenshot from your phone or of your computer screen as documentation proof. These unfortunately cannot be used by lenders and you will end up having to upload the document all over again.
• AVOID Taking a picture of or upload a document is blurry, distorted, unreadable, or at a low angle as if we reading the opening intro to a Star Wars© Movie.  See Tips for Scanner App below for best practice.
• AVOID Taking one picture of multiple pages as one image or document.
• AVOID Sending a 4 page document as 4 separate images or pages.
• AVOID Cropping off any corners of a documents page. (Make sure all four corners are visible and showing, hint: the Adobe Scan app will automatically crop the edge correctly for you).
• AVOID Submitting ANY editable document such as Microsoft© Word, Excel, etc.
• ONE EXCEPTION You may take a clear picture (please do not crop the corners) of your Government Issued Photo ID and to upload it.
• PLEASE Scan documents in portrait format, not landscape (sideways) as this will upload the document on it’s side.

Options IF You Don’t Have Access to a Scanner for Uploading Documents:

1) Your local FedEx Kinko’s© or a UPS Store© will, for a nominal fee, scan all your documents to a portable storage drive like a USB Drive and/or Email the scanned documents to you.

2) Download the Adobe© Scan mobile app from your app store which will scan documents into PDFs and allow you to combine pages (ex. 4 pages of a document can be combined into one PDF to then upload).

Best Practices IF Scanning with Phone App:

• Lay document page on a flat surface.  Holding your phone above surface make sure all four corners are visible in scanner app view frame from the top down (not from an angle), allow camera to focus, and take the picture.
• Do the same with each page of the document (ex. if there are 4 pages to the document, take a picture in the app for each page number in order).
• Once you have all the pages of the document, it is best to choose the option to combine them into one PDF.
• Name each document (ex. Bank Statement: Name on Account – Bank Name – Statement Date). Then Save the document to your preferred cloud storage or email it to yourself to then upload it into your loan app portal. 

We “pull back the curtain of Oz”, provide you with transparency and take the mystery out of the home buying process!

Our 30 minute Pre-Approval Workshop Video Call, or in person meeting is usually our clients most valuable and informative part of the process. You will walk away empowered with the knowledge you want and need to make the best informed decisions for your situation based on the current market, trends, and optimal solutions for you to Make Smart Financial Moves. 

We cover topics like:

• Review with you what we found in the pre-approval process and discuss your pre-approval based on your goals and objectives.
• Provide advice and guidance as mortgage experts and answer all your questions (don’t be shy).
• Give you the peace of mind and understanding you need about the process, especially if a first time home buyer (FTHB).
• Either confirm your original thought process or opens up new ideas, concepts, and options (as is typically the case) may not be aware of.
• Interactive workshop designed around you with personalized loan scenarios of the best programs, products, options, and interest rates and strategies to help you achieve your goals.
• Notify and update your real estate agent of your pre-approval details and what you ideal price range is for the goals and budget you shared.
• Now the fun begins… You focus on home shopping and putting in an offer to get accepted!

Note: It is highly recommended to schedule this at time when other key parties (like spouses or partners) can also attend this.

Buying or refinancing a house is a big deal and we want to make sure that anyone involved in the process, even from an emotional support and/or guidance capacity, has their questions and concerns addressed. Even if it has to be nights or weekends, we are happy to accommodate. Please use our Home Loan Calculators to estimate monthly payments and more.

Of all the things to pay attention to in the process of your mortgage loan being approved, this tops the list to ensure you have a Happy Homeowner Experience.

• DO Get pre-approved for a mortgage early in the home search  process. This will give you a good idea of how much you can afford to borrow and make the home buying process go more smoothly.

• DO Work with a qualified mortgage broker. A mortgage broker can help you find the best mortgage for your needs and negotiate the best terms on your behalf.

• DO Gather all of your required documentation. This will include things like your tax returns, pay stubs, and bank statements. See section above.

• DO Communicate transparently with your lender. As mentioned earlier, mortgage approvals are a collaboration between you and the lender. Your lender might have questions regarding your credit or need to clarify something in your financial history. The sooner you respond with clear answers, the more quickly a decision will be forthcoming. Or, at the same time, you might have questions of your own. The earlier you ask any questions about the nature of your loan, the better.

• DO Ask questions. If you don’t understand something, ask us and we will explain it to you.  There are no bad or “dumb” questions.

• DON’T Change, Quit, or Give Notice on your current Employment, Retire, or Make any major financial changes during the mortgage process. Congratulations on finding that new job that pays you double. Now don’t quit. Don’t start the new job until you’ll spoken with us and discussed the details. See above about quitting. Don’t take that new position within your current company without calling us first. Despite it being with the same employer, it too could create issues depending on the situation. This could make it more difficult for you to qualify for a mortgage or could lead to an increase in your interest rate. Mortgage lenders are required to contact your employer to verify employment a few days before closing. One of the questions asks about the likelihood of your employment. Problems occur if their response is anything less than absolute.

• DON’T Take on any new debt or credit (or have your credit pulled again) during the mortgage process. This could also make it more difficult for you to qualify for a mortgage or could lead to an increase in your interest rate or affect qualification for debt-to-income ratios. Having your credit pulled will result in additional paperwork. Every credit inquiry within 120 days of closing will need to be explained with a “Credit Inquiry Letter”. Lenders do update the inquiries right before closing. Do NOT procure any new loans or acquire any new debt. Don’t open any credit cards (even if they’re a zero balance), don’t buy a new car, don’t pull out money on your HELOC, etc.

• DON’T Make any major purchases such as a car, appliances, etc (especially on credit) or take on new debt before your loan is Funded (Not the Closing Day).  It is necessary to wait until you loan “funds” completely, so wait until a DAY AFTER closing for a Home Purchase and due to the 3 day recision laws a Refinance will not fund until 4-5 DAYS AFTER your closing docs are signed (just ask us when you can and we will give you a “safe date”). This includes appliances, furniture, cars, etc.. Call us if you truly need to make these purchases in advance. We’ll review your profile and ensure you can proceed without jeopardizing your mortgage approval.

• DON’T Make any large or “random” deposits into your bank account or transfer money around without being able to document the source of the funds. Maybe it’s a family member giving you a sizable amount of money. Maybe you forgot to disclose a source of income on your application. Whatever the reason, it’s important that your financial records conform to what’s listed on your application. Your lender will need to verify that you have enough money saved for a down payment and closing costs. It is wise to consult your mortgage professional before transferring money around as well as it can save you time and headache to simply wire to title.  All funds have to be origin sourced per federal law. Do not close any accounts as well is good advice.

• DON’T Withhold financial information from your loan officer. Your loan officer is there to guide you and help you navigate, withholding financial information could affect your qualifying or closing or put earnest money in jeopardy per your real estate purchase agreement.

• DON’T Change pay or compensation structure. Changing pay structures, even for more money, can cause major problems with your approval. Call us before making any change in your compensation. Ex: going from salary to commission, adding additional overtime, switching from W2 to 1099 Contracting, etc.

• DON’T Sign documents without reviewing and understanding them. At any stage of the process—even during your closing – never feel pressured to move forward or to sign documents that you may not understand. Always feel comfortable asking for a full explanation of terms, conditions, and anything else related to your mortgage. Given that this will be one of the biggest transactions of your life, it’s crucial you have full understanding of your obligations as a borrower. If you want the smoothest possible process when it comes to the decision on your mortgage, pay careful attention to these relatively simple Dos and Don’ts. The better prepared you are at the beginning and the more you view the process as a working relationship, the easier the mortgage approval process will be. And the sooner you’ll be able to move into the house of your dreams.

NOTE: When in Doubt, Consult us before doing so to make sure it won’t adversely impact your mortgage loan.

As a mortgage broker, we have access to a diverse portfolio of over 100 lenders for just about everything in the real estate lending world available. Below are just some the home loan types and options available:

Traditional Mortgage Types: Conventional (Fannie Mae and Freddie Mac backed loans), FHA, VA (for veterans, active duty, retired, national guard, and reservists), USDA are all government backed loans, Jumbo, Super Jumbo, DPA (Down Payment Assistance) Programs.

Additional Mortgage Types: Home Equity Loans such as HELOC (home equity line of credit), 2nd Mortgages, New Build Construction, Construction to Perm, and Reverse Mortgages (also known as HECMs).

Non-Traditional Mortgage Types: These are loans that do not fit into “Conforming QM” loan standards and are therefore referred to as Non-QM. Examples of these loan types are: Bank Statement loans, Asset-based loans, Asset Depletion loans, Alternative Documentation, Investors, DSCR (debt service coverage ratio investor rental property loans), Minimal/Limited Documentation, Foreign Nationals, and Bridge Loans to name a few.

Home Types including but not limited to: Single Family Dwellings, Townhome, Condo, Manufactured Homes, 2-4 (Duplex, Triplex, FourPlex) Unit Homes for: Primary Residence, Second Home, Vacation Home, Rental Property, Short-term Rental, Investment Property, etc. 

Commercial Real Estate Loans: We also have solutions for Commercial Real Estate Financing and 4+ Unit Buildings solutions!

Home Search Tip #1: Your can maximize home buying power and qualification by paying attention to different annual property taxes and the monthly HOA amounts. 

Home Search Tip #2: Sometimes a condo or townhome compared to a single family home can cost more monthly when you factor in certain HOA monthly dues so pay attention to these numbers. While condos and townhomes typically have lower monthly home insurance (often called hazard insurance) and property taxes , the monthly HOA dues may offset this savings so just be sure to pay attention to these costs, or contact us and we’ll run numbers for you on a home you are considering! 

We specialize in: Thinking outside the box for solutions to your needs. While we help all typed of borrowers, we expertise in helping borrowers who are: first-time home buyers, move-up buyers, veterans or active-duty military, relocation services, and self-employed or business owners.

Whether you are looking to buy a home, refinance to a lower your rate, or pull some cash equity out of your home, we can help!

Congratulations! Together with your real estate agent and our mortgage team you have successfully negotiated and got your purchase offer accepted!

Next Steps:

• One of the first things you’ll do is deposit or wire your earnest money with the title company, that has been selected by the sellers of the home (don’t worry, you’ll get to pick when you sell the home).
• You’ll probably want to order your home inspection right away with your real estate agent guiding you. Note: It is important to alert us if anything comes up in your home inspection with your Realtor©, that you notify us immediately so we can pause the appraisal initial inspection visit if some things need to be worked out for inspection resolution.
• While you order the home inspection, our mortgage team will order the appraisal inspection & report to be completed.

Refinancing? You can disregard this section.

Now that you have reviewed loan programs and options it’s time to proceed with getting the loan into processing and for underwriting review and final approval. The next step is to get the initial disclosures out and “lock in” your mortgage rate.  These two steps often occur at the same time. However, in some cases, locking in the rate may occur after initial disclosures are signed, depending on your needs and scenario.

• Mortgage Rates “Lock Talk”: regarding locking in your mortgage interest rate. We will cover the key things you need to know and be aware of, how the rate lock protects you from market rate fluctuation such as rising interest rates, the terms, and your options if rates suddenly were to suddenly drop significantly, etc.
• Watch your email for your Initial Loan Estimate “LE” Disclosures to e-Sign: You will be receiving time sensitive lender disclosures that will need to be eSigned in order to proceed. These disclosures indicate your intent to proceed with the home purchase or mortgage refinance process and discloses important information to you required by law. These signatures are also necessary prior to ordering your appraisal.

Your initial documentation gets submitted to the lender’s underwriter, who will review and might need additional clarification or confirmation of certain items at times. This is often referred to as a “Conditional Approval” and is a normal part of the process for any borrower. Don’t worry, this is normal.  We’ll keep you informed every step of the way and if we need anything additional from you. and guide you through every step of the way. No need to stress, we got you!

Congrats! Moving Day can eventful, we try to make it easier with our helpful Moving Tips & Checklist.

Time for pizza and cold ones for moving day with  friends and family to help with unpacking those boxes, trips to furniture and home decor stores to get ideas on decorating and designing to make your new home look and feel just the way you want it.

Welcome Home!

We believe in exceptional value-added service and are passionate about what we do. We want you to have such a Great Experience that you are Happy Homeowners and feel want to share your experience working with our team with others you learn or hear about who are looking to learn more about how they can qualify and afford to buy a home or refinance their current mortgage to reduce or manage debt, reduce their mortgage rate, or whatever the goal.

Will you do me a favor?

Will you do me a favor to help me help others realize their homeownership goals with ease? Share with us those people in your social circles who you feel or learn of that we can help have the same great experience such as:

• Friends
• Family
• Co-Workers and Peers
• Other Trusted Advisors and Business Professionals

Helpful Tips for Referring People. It’s as easy as listening for comments like: Someone mentions buying a home, wishing they could afford to buy a home, not sure if they can buy a home, they are currently not experiencing great service with a lender or loan officer, wanting to consolidate or minimize their debt, saving for a down payment, thinking of waiting to buy, wanting to buy another home, looking to invest in real estate, reducing their mortgage interest rate, growing families, down sizing empty nesters, divorce situations (unfortunately true, we help ease the stress with this), or remove mortgage insurance.  Simply sharing your experience working with us helps others, they may even realize it’s worth a call to see what options may work for them.

We truly appreciate you referring them and sharing their info with us.

With gratitude,

Paul Cederholm