Here's everything you need to know to apply for a loan, and some helpful tools to get you started!

Woman Signing Document

All potential borrowers must meet the lender's credit guidelines and income-to-debt ratios. If an evaluation of your credit and financial situation shows that you are not quite ready for a home loan, Southern Mutual Financial Services (SMFS) can work with you to repair your credit, and also offers counseling to help you take control of your finances.

Many of the homeowners who are in their own homes now with loans from SMFS went through a period of credit repair and financial planning to get themselves ready for a home loan, before they actually were approved for a loan.

When the guidelines are met, the applicant receives a Pre-qualification letter from the lender to enter into a Sales Contract (Purchase Agreement). Then the loan proceeds through these simple, logical steps:

Keep in mind that many of the borrowers who are in their own homes today with loans through SMFS did not qualify for loans from conventional lenders, and in some cases, did not immediately qualify for a loan through SMFS. A large part of the work of SMFS is to help potential borrowers repair their credit and undertake better management of their finances, so that they can become qualified as borrowers and fulfill their dreams of home ownership.

Appraisal The Underwriter orders verifications and an appraisal of the property. This reassures the lender and the borrower regarding the property value.
Closing When the above items are complete, the loan officer will request final approval from the Loan Committee and schedule the closing date. Soon you will move into your home!
Education All potential borrowers must complete Homebuyer Education and Skills Transfer Training before loan closing. Homebuyer Education provides helpful information regarding personal finances to keep the borrower successful in loan repayment, and Skills Transfer Training helps preserve cash and maintain property value by teaching the borrower basic home maintenance basics.
Process An application is processed (this involves several key steps and the loan officer will guide the applicant through the process to make sure that everything is understood)
Review The Underwriter reviews the documents, prepares and submit all necessary documents to the Loan Committee for Pre-Approval.
Title The lender submits a Request for Title to the closing attorney. Similar to above, this step ensures that the title work is in proper form.



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