Mortgage Process and Products, Essay Example

I searched for a home mortgage company online and found the Ruoff Home Mortgage company. I called their number, 1-800-627-8633 and spoke to a home loan consultant about the mortgage application process and three different types of home mortgage products available.

Before starting the mortgage application process there are a number of documents to have ready related to income, assets, homeowner’s insurance information, and a legal description of the property. The documents include two years worth of W-2’s, tax returns, and current paystubs, bank statements, investment statements, and value of all assets. Information for retrieving a credit report is usually given to the mortgage company over the phone. After the credit report has been reviewed, the application is either filled out and signed in person or filled out over the phone, then mailed or electronically sent for signature. Processing, when the application is looked over for errors and a picture of the applicant’s financial situation is created, takes one to three business days. When everything is okayed the application is sent to the underwriter who evaluates the financial picture set out by the mortgage professional and makes the final approval decision within one to three days. If there are any conditions that need to be met to clear the loan the underwriter will list them.

FHA mortgage loans for existing properties are loans insured by the FHA. Customers pay for the extra insurance, but receive lower down payment requirements and lower closing costs. Fixed rate mortgage loans keep the interest rate the same over the life of the loan and can be taken for 15, 20, or 30 years. Adjustable Rate Loans, ARM’s, allow the interest rate to fluctuate within a defined range. The best product choice varies according to what the customer is looking for and the customer’s situation. FHA’s can be best for those with lower incomes. ARM’s can be best for those who will only be in the house a short time if the market rate is low. For those looking to buy a house for the long-term with median incomes, the conventional fixed rate is best.