The application is broken down into sections and you can track your progress through each section at the top of each screen. It should take less than 20 minutes to complete the application. Move through the application by using the “previous” and “next” arrows at the bottom of each screen.
If you need additional help answering a question, click on the Help button at the button at the bottom of each screen.
If you don’t have time to complete the application once you’ve started, we’ll save the information you have completed When you’re ready to finish, return to the site and enter your email address and password to continue.
have an opportunity to adjust it at anytime during the loan process all the way up to and just prior to the loan closing. Once we receive your online application a loan advisor will work with you to ensure that the both structure of the loan and loan amount suits your needs.
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.
We will always attempt to approve you for the loan without using these sources of additional income to reduce the amount of documentation you need to provide.
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.
Some of the things 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 300 to 850. Generally, the higher your credit score, the lower the risk that your payments won’t be paid as agreed.
Transunion Consumer Relations
PO Box 1000
Chester, PA 19022
Equifax Consumer Relations
PO Box 105873
Atlanta, GA 30348
Experian Consumer Relations
PO Box 2002
Allen, TX 75013
agencies and request that they block the reporting of the information that appears on your credit report as a result of identity theft. The law provides guidance to the credit reporting agencies on when to block and unblock such information.
three national repositories: Equifax, TransUnion and Experian. Customers may obtain their personal credit report through the following website: www.annualcreditreport.com
* As a company offering mortgages via the Internet, our system eliminates the need for a loan broker and highly commissioned loan officer, the two highest cost components of a mortgage transaction.
* We lend from a single location eliminating the cost of brick and mortar branches.
Upon submission of your online loan application, our team will move into action. No later than the end of the next business day, a Loan Advisor will contact you to introduce themselves and to answer any questions you may have. Your Loan Advisor is a mortgage expert and will provide help and guidance along the way. Depending on the strength of your application, we may even secure your approval that same day!!
We’ll Send You an Application Kit and Prepare Your Loan for Closing
A complete set of application forms will be prepared inserting your personal information and transaction numbers. To expedite things as quickly as possible the application forms will be sent to you via email. The email will contain papers for you to sign and a checklist of items we’ll need to verify the information you provided about your finances during the on-line application. Typically this includes documents relating to your income and asset accounts like last year’s W-2 form, recent paycheck stub, and bank statement.
If you prefer regular mail over email we can use a one day delivery service to get your application forms to you. We’ll even include a priority mail envelope to make it as easy as possible for you to return the papers.
There is no loan application fee but you will be paying for your property appraisal using a credit card or even a bank debit card. We accept Visa, MasterCard, Discover or American Express.
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.
Title insurance will be necessary, if you are purchasing a home we’ll work with the Real Estate Broker or seller to insure 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 policy to confirm the legal status of your property and to prepare the closing documents.
Your assigned Loan Advisor will keep you informed every step of the way via telephone or e-mail.
We’ll Contact You to Coordinate Your Closing Date
After we receive your application kit, the appraisal, and the title work, we’ll contact you to schedule your loan closing.
The closing will take place at the office of a title company or attorney in your area who will act as our agent. A few days before closing your Loan Advisor 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! Apply Now you will be on your way to the most convenient home loan ever!
Because everyone looks a little bit different on paper with respect to their income sources, asset accounts and credit history, a more complete checklist will be emailed to you once you complete the online application.
NOTE: Rates are currently at historic lows. If you are applying for a refinance transaction we recommend you lock your rate as soon at time of application. If rates drop further while your loan is in process, you can take advantage of our float down policy. However, if rates suddenly shoot up (which they can do very quickly on unexpected economic news), you will wish you had locked your rate when you applied
You are not required to have an escrow/impound account unless the Loan-to-Value ratio on your loan is over 80%. However, if you decide not to have an escrow/impound account, your closing costs may be slightly higher.
Closing Costs are “one time costs to obtain a mortgage, paid at closing” and include the following:
Guaranteed Lender Fee: We charge one all-inclusive Guaranteed Lender Fee also known as “Origination Charge” , which includes processing, underwriting, doc prep, funding and wire transfer fee. This is guaranteed at time of your loan application.
Guaranteed Discount Points OR Guaranteed Rebate: You may elect to pay discount points to buy down your interest rate. Or you may choose a slightly higher rate and obtain a rebate to offset some or all of your closing costs. This is guaranteed at time of your rate lock and depends on your choice of interest rate.
Guaranteed Appraisal Fee: Your appraisal fee is collected in advance on a credit card. The funds are used to pay for your appraisal, a service performed by an independent third party. Appraisal fees are guaranteed on both purchase and refinance transactions.
Guaranteed Government Recording Charges: The county recorder’s office will charge a recording fee to record your new mortgage or deed of trust.Guaranteed Government Transfer Taxes: Some states, counties and cities charge a transfer tax (also known as a Mortgage Tax or Tax Stamps) when you purchase a property or refinance a mortgage. Government transfer taxes are guaranteed and per government requirements are based on loan amount. That said, they will only change if the loan amount changes.
Closing Agent and Title Insurance: Closing agent (or attorney) and title insurance fees are guaranteed if you use the national service provider we contract with to provide these services in your state. You will notice that these fees are extremely competitive due to the high volume of business that we provide to these service providers.
Prepaids are “recurring costs of homeownership, partially prepaid at closing” and include the following:
Initial Escrow/Impound Account Deposit: If an escrow/impound account is to be established for the ongoing payment of your property taxes and homeowner’s insurance, funds will be collected at close to make an initial deposit into the account so that sufficient funds will be available to pay these recurring expenses as they become due.
Prepaid Interest: Your mortgage payment due date will be the first of each month. If your loan is closed on any day other than the first of the month, prepaid interest will be collected at closing, calculated from the date of closing through the end of the month.
First Year Homeowner’s Insurance Premium:
If your loan is a purchase transaction, your first year’s homeowner’s insurance premium will be collected at closing and paid to your insurance company.
There may also be tax advantages to paying points. For most taxpayers, points paid on purchase loan transactions are tax deductible in the year the home is purchased and points paid on refinance transactions are tax deductible over the life of the loan. Tax consequences vary so we encourage you to consult your tax advisor.
On a 1-unit primary residence or second home, federal regulations require that PMI be automatically cancelled when your loan balance reaches 78% of the original property value at the time the loan was secured. Depending on the loan program, you may be able to request in writing that PMI be removed sooner, based on an increase in the property value as determined by a new appraisal to be ordered by the servicer. Generally, PMI must have been in place for at least two years and you must have a good payment history for PMI to be cancelled under this scenario.
For a refinance where you are simply paying off an existing 1st mortgage loan (plus closing costs if desired) there may be no limit as to the loan to value. So even if you have little equity or even or negative equity in the property, we may have options for you.
For a “cash out” refinance, this also will vary based on loan program and will depend on certain factors like occupancy status, credit score and # of units. In general, the maximum loan to value on a “cash out” refinance will be as high as 85% of the property appraised value.
On jumbo loans, the maximum debt to income ratio is si slightly lower.
On a jumbo loan amount, and depending on the loan program, paying off a second mortgage loan that is “seasoned” will not be considered a cash out refinance.
Your second mortgage lender will ask us to provide some documentation such as a copy of the mortgage note you’ll be signing and the appraisal before they provide the subordination agreement. We won’t be able to schedule your loan closing until we receive the subordination agreement.
When subordinating an existing second mortgage or home equity line, Shoreline Mortgage recommends you take a 60 day lock to avoid potential lock extension fees.
SFR/Condo: $417,000 ($625,500 in Alaska, Guam, Hawaii, and the US Virgin Islands)
2-Unit Property $533,850 ($800,775 in Alaska, Guam, Hawaii, and the US Virgin Islands)
3-Unit Property $645,300 ($967,950 in Alaska, Guam, Hawaii, and the US Virgin Islands)
4-Unit Property $801,950 ($1,202,925 in Alaska, Guam, Hawaii, and the US Virgin Islands)
A super conforming loan is a temporary loan category that was created by the Economic Stimulus Act of 2008. The Act allows Fannie Mae and Freddie Mac to purchase mortgages in “high cost” housing markets. These “Super Conforming” limits are set equal to 115 percent of local median house prices up to a current maximum as of 1/01/2014 of $625,500 (higher limits permitted for 2-4 unit properties and properties located in Alaska, Guam, Hawaii and the US Virgin Islands).
Jumbo loans are loans which exceed conforming and super conforming limits.
Here’s some detailed information explaining how ARM’s work.
Adjustment Period: The interest rate and monthly payment are fixed for an initial time period, generally three, five, seven or ten years. After the initial fixed period, the interest rate can change every year.
Index: Interest rate changes are tied to changes in an index rate. The current values of the indices used on our ARM programs are published weekly in the Wall Street Journal and shown on our website. At each adjustment date, if the index rate has moved up, so will your mortgage rate, and you will have to make a higher monthly payment. On the other hand, if the index rate has gone down, your rate and monthly payment will decrease.
Margin: To determine the new interest rate on an ARM, at each adjustment date, a pre-disclosed amount, called the “margin”, is added to the index to determine the new interest rate.
Interest Rate Caps: An interest rate cap places a limit on the amount an interest rate can increase or decrease at each adjustment. ARMs have three types of caps: an initial cap, which limits the interest rate increase or decrease at the first adjustment; a periodic cap, which limits the interest rate increases or decreases at all following adjustments; and a lifetime cap, which limit the interest rate increase over the life of the loan.
Without such an agreement, the second mortgage holder would move into a first lien position when the existing first mortgage was paid off. The second mortgage lender usually charges a fee to process the subordination agreement, which is incurred by the borrower. Additionally, this process often increases the amount of time necessary to process a first mortgage refinance transaction, so an applicant wishing to subordinate a second mortgage may want to take a 45 or 60 day lock to ensure sufficient time to obtain the subordination agreement.
Once a title policy is issued, if any claim covered under your policy is ever filed against your property, the title company will pay the legal fees involved in the defense of your rights. They are also responsible to cover losses arising from a valid claim. This protection remains in effect as long as you or your heirs own the property.
description and estimate of the value of a property. National standards govern not only the format for the appraisal; they also specify the appraiser’s qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states.
The appraiser will create a written report for us and you’ll be given a copy as soon as we secure it. The report will compare the qualities of your home with other homes that have sold recently in the same neighborhood. These homes are called “comparables” and play a significant role in the appraisal process. Using industry guidelines, the appraiser will try to weigh the major components of these properties (i.e., design, square footage, number of rooms, lot size, age, etc.) to the components of your home to come up with an estimated value of your home. The appraiser adjusts the price of each comparable sale (up or down) depending on how it compares (better or worse) with your property. If your home is for investment purposes, or is a multi-unit home, the appraiser will also consider the rental income that will be generated by the property to help determine the value.
In addition, in most cases an HOA certification is required and must be completed by your HOA. The certification must meet underwriting guidelines. There may be a fee assessed by your HOA, which you will send directly to the HOA for completion of the certification.
The closing will take place at the office of a closing agent, attorney or title company or if you prefer a mobile notary will be sent to the location of your choice which may be a local title company, your home or office.
You will be reviewing and signing several loan documents. The most important documents include:
Note: This is the document you sign to agree to repay your mortgage loan. The Note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.
Mortgage or Deed of Trust: This document pledges your property to the lender as security for repayment of the debt. The Mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower.
Truth-in-Lending Statement (TIL): This document provides a full disclosure of the terms and conditions of your mortgage, including the annual percentage rate (APR) and other fees.
HUD-1 Settlement Statement: This document provides an itemized listing of the final fees charged in connection with your loan.
If your loan is the refinance of a primary residence, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won’t be disbursed until three days have passed (excluding Sundays and Federal Holidays). The closing agent will provide more details at the closing.
On a refinance transaction, we utilize a local title company in your area or a professional signing service to bring the loan documents to your home or business for signing. We wire transfer your loan funds to your closing agent or attorney prior to closing so that they’ll have plenty of time to prepare for your closing.
As long as is no monthly fees for administration of the bi-weekly program, it is an excellent way to pay the loan off quicker.