Once the application has been submitted, the processing of the mortgage begins. All information on the application, such as bank deposits and payment histories, are verified. Any credit issues, such as late payments, collections and/or judgments will be reviewed. The processor also examines the Appraisal and Title Report checking for property issues that may require further investigation. The entire mortgage package is then put together for submission to the Underwriter.

Required Documents

• Current pay stubs for the most recent month (normally 2 pay stubs).
• Most recent monthly bank/asset statements (all pages) to show the funds for the down-payment and closing costs.
• Most recent W-2 Forms (2 years).
• Copy of the Purchase and Sales Agreement and property listing sheet (purchase).
• Copy of property tax bill and home insurance declaration page (refinance)
• Valid photo identification (driver’s license, Passport, etc).

Self-Employed Borrowers (additional documentation)

• Signed personal Federal tax returns – including all schedules (most recent 2 years) and K-1s (if any)
• Business returns (2 years) if own 25% or more of the business

Different programs require varying amounts of documentation. The loan program you select may require more or less documentation. Please contact us for a FREE, no-obligation consultation.

All loans are subject to credit and property approval. Other restrictions and limitations may apply.

An Appraiser researches the market to arrive at a property value. As the Appraiser compiles data pertinent to the report, consideration must be given to the site and amenities as well as the physical condition of the property. Considerable research and collection of data must be completed prior to the Appraiser arriving at a final opinion of value. The Appraiser is an independent vendor and has to be chosen on a rotating basis. Importantly, Draper and Kramer Mortgage Corp. uses a local panel of experienced appraisers. Most larger banks and lenders use national appraisal management companies that will often assign appraisers from outside the immediate area.

There are three common approaches to arriving at an estimate of value:

Cost Approach:
This method derives what it would cost to replace the existing improvements as of the date of the appraisal, less any physical deterioration, functional obsolescence, and economic obsolescence.

Comparison Approach:
Uses other ‘bench mark’ properties (comps) of similar size, quality and location that have recently sold to determine value. This is the approach used for residential lending and the approach given most weight determining the final property value.

Income Approach:

This method is used in the appraisal of rental properties and has little use in the valuation of single-family dwellings. This approach provides an objective estimate of what a prudent investor would pay based on the net income the property produces.

All loans are subject to credit and property approval. Other restrictions and limitations may apply.

Once the Processor has put together a complete package, the file is sent to the Underwriter. The Underwriter is responsible for determining whether the file is deemed an acceptable loan. If more information is needed, the loan is put into ‘Suspense’ and the borrower is contacted to supply more information and/or documentation. If the loan is acceptable as submitted, the loan is put into an ‘approved’ status and any additional conditions are requested of the borrower.

All loans are subject to credit and property approval. Other restrictions and limitations may apply.