Your guide to home loan success

YOUR GUIDE
TO

HOME LOAN
SUCCESS

Kathy Trolinger

LOAN OFFICER | BRANCH MANAGER
NMLS 662177
619-208-0460
[email protected]

WWW.SUNSTREETMORTGAGE.COM | BR NMLS #1540765 | AZBK #0121829 | CA LICENSE # 41DBO-61255 | EQUAL HOUSING LENDER
EACH LOAN IS SUBJECT TO APPROVAL. ALL INFORMATION, LOAN PROGRAMS, INTEREST RATES, AND CONDITIONS ARE SUBJECT TO CHANGE WITHOUT NOTICE.

KATHY TROLINGER IN THIS GUIDE WE WILL WALK YOU
THROUGH WHAT TO EXPECT DURING
LOAN OFFICER | BRANCH MANAGER THE LOAN PROCESS, GIVE YOU
NMLS 662177 HELPFUL TIPS AND INFORMATION,

AND ANSWER ANY QUESTIONS YOU
MAY HAVE IN REGARDS TO YOUR
1550 HOTEL CIRCLE NORTH, STE 100 MORTGAGE LOAN.
SAN DIEGO, CA 92108

GUIDE CONTENTS
619-208-0460
WHAT WE NEED
[email protected] MORTGAGE DO'S & DON'TS
WHAT IS IN A MORTGAGE PAYMENT?
LOCKING IN YOUR INTEREST RATES
UNDERSTANDING CLOSING COSTS
ROAD MAP TO HOME LOAN SUCCESS

Kathy Trolinger

Loan Officer | NMLS 662177
619-208-0460
[email protected]

www.sunstreetmortgage.com | BR NMLS #1540765 | AZBK #0121829 | CA License # 41DBO-61255 | Equal Housing Lender
Each loan is subject to approval. All information, loan programs, interest rates, and conditions are subject to change without notice.

Basic Mortgage Lending Qualifications FHA Loans

2 forms of valid U.S. ID (driver's license & Social Security card preferred) Primary residence only
Pay stubs -Current Year To Date, covering most recent 30 days (2 Cannot have 2 FHA loans (in most cases, ask for details)
minimum) 580 (banked), 530 (Brokered) Credit Score
Bank Statements 60 days (ALL PAGES). If printout: Stamped & initialed Foreclosure 3 years passed; Bankruptcy 2 years passes
by banker 2 year history of stable employment
2 months Statements for any other Liquid Asset (IRA/ 401 K/TSP) Debt to income: total debt, including new housing payment should be
2 Years W-2's & Federal Tax Returns (all schedules) approximately 45% of your gross monthly income. Income calculations can
Previous employer phone numbers, addresses and employment dates vary, depending on a variety of factors.
Homeowners Insurance: Company, Agent Name, Phone Number Down payment: 3.5% of purchase price and can be gifted.
Final divorce decree and/or settlement agreement Seller can pay costs up to 6%
Proof of alimony or child support payments received in past 12 Non Occupying Co-Signers are allowed
months. Must include debts of a spouse even if they are not on the application.
DD214 (or Statement of Service if active duty military)
Award letters verifying pension, social security and/or annuity income VA Loans
2 years corporate tax returns and applicable W2's & Kl's
YTD Profit and Loss statements and Balance Sheets More flexible underwriting than FHA or Conventional
(If Self-Employed) Letter from CPA stating self-employed for minimum Must have termite report
2 years 100% Financing
No Monthly MI
Self-Employed Mortgage Lending Upfront funding fee of 2.15%-3.3% (Can be as low as 1.25% in some cases)
Qualifications Primary Residence
2 eyars since short sale, bankruptcy or foreclosure
Always need tax returns for self employed borrowers (personal and Borrower and spouse only or 25% down on co-borrower half of the loan
business)
Always check for non-reimbursed employee expenses. Conventional Loans
Tax returns must match IRS Transcripts.
Can't use bonus, overtime or commission income until there is a 2 Primary, second home and investments
year history. Can apply as sole and separate. Spouse debts and credit not considered.
Credit is pulled again before funding and after closing. 620 credit score
Credit counseling generally OK after 12 months. Foreclosure 7 years; bankruptcy 2-4 years
2nd homes must never be converted to a rental per the closing Short sale 4 years passed without late payments
documents. Down payment: 3% (minimum credit score and maximum debt ratios
Buy and bail situations. If they say they are goign to rent existing apply)
home out they must do it. Rate is sensitive to credit scores and down payment
Buy-in for a realtive to occupy is an investment property to the borrower.

Other conditions and restrictions may apply. Rates and available loan programs are
subject to change without notice. Contact your Loan Officers for more information.

Kathy Trolinger

Loan Officer |Branch Manager | NMLS 662177
619-208-0460
[email protected]

www.sunstreetmortgage.com | BR NMLS #1540765 | AZBK #0121829 | CA License # 41DBO-61255 | Equal Housing Lender
Each loan is subject to approval. All information, loan programs, interest rates, and conditions are subject to change without notice.

DO: DON'T:

KEEP OR HAVE ACCESS TO ORIGINAL CLOSE OR OPEN BANK ACCOUNTS, OR
PAYSTUBS, BANK STATEMENTS, AND OTHER TRANSFER FUNDS BETWEEN ACCOUNTS
IMPORTANT FINANCIAL DOCUMENTS. WITHOUT TALKING TO YOUR LOAN
PROVIDE EARNEST MONEY DEPOSITS FROM ORIGINATOR ABOUT HOW IT MAY AFFECT
YOUR PERSONAL BANK ACCOUNT OR GIFT YOUR LOAN.
FUNDS. GIFT FUNDS ARE ONLY ACCEPTABLE DEPOSIT ANY MONEY OUTSIDE OF YOUR
IF CERTAIN CRITERIA IS MET. AUTOMATED PAYROLL DEPOSITS, ESPECIALLY
PRESENT ALL OF THE DOCUMENTATION CASH OR SALE OF PERSONAL PROPERTY
FROM THE SALE, INCLUDING SALES WITHOUT NOTIFYING YOUR LOAN
CONTRACT, CLOSING STATEMENT, ORIGINATOR.
EMPLOYER RELOCATION INFORMATION IF CHANGE JOBS, EMPLOYER, EMPLOYMENT, OR
APPLICABLE, IF YOU ARE SELLING YOUR WORKING HOURS. THIS CAN IMPACT YOUR
CURRENT HOME. LOAN QUALIFICATION.
LET YOUR LOAN ORIGINATOR KNOW ABOUT MAKE MAJOR PURCHASES PRIOR TO OR
ANY EMPLOYMENT CHANGES SUCH AS A DURING YOUR CONTRACT. THIS COULD
RECENT RAISE, PROMOTION, TRANSFER, INCLUDE BUYING A CAR, APPLIANCES,
CHANGE OF PAY, ETC. FURNITURE, ETC.
BE AWARE THAT YOUR CREDIT MAY BE APPLY FOR ANY NEW CREDIT, OPEN ANY NEW
PULLED AGAIN JUST PRIOR TO CLOSING TO ACCOUNTS OR INCREASE CREDIT CARDS,
GENERATE A NEW CREDIT REPORT. STUDENT LOANS AND LIABILITIES, OR ANY
CONSULT YOUR LOAN OFFICER FIRST IF OTHER LINES OF CREDIT.
YOU MUST MAKE A LARGE PURCHASE COSIGN FOR FAMILY OR FRIENDS.
(ANYTHING OUT OF THE ORDINARY)

Kathy Trolinger

LOAN OFFICER | BRANCH MANAGER
NMLS 662177
619-208-0460
[email protected]

WWW.SUNSTREETMORTGAGE.COM | BR NMLS #1540765 | AZBK #0121829 | CA LICENSE # 41DBO-61255 | EQUAL HOUSING LENDER
EACH LOAN IS SUBJECT TO APPROVAL. ALL INFORMATION, LOAN PROGRAMS, INTEREST RATES, AND CONDITIONS ARE SUBJECT TO CHANGE WITHOUT NOTICE.

WHAT IS IN A
MORTGAGE
PAYMENT?

PRINCIPAL THE PORTION OF YOUR MONTHLY PAYMENT THAT IS
INTEREST APPLIES TOWARDS LOWERING THE BALANCE OF YOUR
LOAN.
TAXES
THE PORTION OF YOUR MONTHLY PAYMENT THAT
INSURANCE COVERS THE INTEREST ACCRUED THE PREVIOUS MOTNH
ON THE BALANCE OF THE LOAN.
HOA FEE
PROPERTY TAXES- ASSESSED BY THE COUNTY AND ARE
BASED ON THE SALES PRICE. 1/12TH OF THE PAYMENT
WILL BE INCLUDED IN YOUR BILL EACH MONTH.
MELLO ROOS- SPECIAL TAX ASSESSMENT CHARGED TO
HOME OWNERS USED TO PAY BACK THE COST OF
INFRASTRUCTURE IMPROVEMENTS IN CERTAIN
COMMUNITIES.

HOMEOWNERS INSURANCE-CIVERS DAMAGE TO YOUR
PROERTY FROM THEFT OR FIRE. 1/12TH OF THE ANNUAL
PREMIUM CAN BE INCLUDED IN YOUR PAYMENT.
MORTGAGE INSURANCE- PMI OR MIP IF REQURIED,
PROTECTS THE LENDER INT HE EVENT OF A DEFAULT ON
THE LOAN.
FLOOD INSURANCE-IS REQUIRED FOR PROPERTIES IN
FLOOD HAZARD AREAS.

NOT INCLUDED IN THE MONTHLY MORTGAGE PAYMENT
TO THE LENDER. AN HOA FEE IS PAID DIRECTLY TO THE
CONDO ASSOCIATION OR PROPERTY MANAGEMENT
COMPANY.

Kathy Trolinger

Loan Officer |Branch Manager | NMLS 662177
619-208-0460
[email protected]

www.sunstreetmortgage.com | BR NMLS #1540765 | AZBK #0121829 | CA License # 41DBO-61255 | Equal Housing Lender
Each loan is subject to approval. All information, loan programs, interest rates, and conditions are subject to change without notice.

LOCKING IN
YOUR
INTEREST RATE

WHAT IS A RATE LOCK?

A RATE LOCK IS AN AGREEMENT BETWEEN YOU (THE BORROWER) AND US (THE LENDER) THAT A
SPECIFIC INTEREST RATE WILL BE PROVIDED TO YOU FOR A SPECIFIC PERIOD OF TIME (THE RATE LOCK
PERIOD).

WHEN IS MY RATE LOCKED?

WE WILL CONFIRM AND LOCK YOUR INTEREST RATE WITH YOUR VERBAL AND WRITTEN
AUTHORIZATION.

WHAT IF RATES GO UP BEFORE I CLOSE ON MY
LOAN?

IF INTEREST RATES INCREASE, YOU ARE PROTECTED AND CAN BE ASSURED TAHT YOUR LOCKED RATE
WILL BE HONORED ON YOUR LOAN PAPERS ON THE DATE OF CLOSING. WE WILL NOT ASK YOU TO PAY A
HIGHER INTEREST RATE SIMPLY BECAUSE THE MARKET HAS WORSENED. IF NECESSARY, THE RATE LOCK
PERIOD CAN BE EXTENDED FOR AFEE.

IF RATES APPEAR TO BE DROPPING, SHOULDN'T I
WAIT TO LOCK A RATE?

ASK YOURSELF WHAT GIVES YOU MORE PEACE OF MIND:
-LOCK A RATE AND POSSIBLY MISS A LOWER RATE IF THE MARKET SHIFTS AFTER YOU LOCK? OR
-NOT LOCK A RATE AND FACE A HIGHER RATE BECAUSE THE MARKET SHIFTS?

IT IS OUR GOAL AS LOAN OFFICERS TO ADVISE AND ASSIST YOU IN DECIDING WHAT WILL WORK BEST
FOR YOUR HOME BUYING SCENARIO. KEEP IN MIND THAT IF RATES DROP AFTER YOU PURCHASE YOUR
HOME, WE CAN ALWAYS REFINANCE YOUR LOAN AFTER 7 MONTHS.

Kathy Trolinger

Loan Officer |Branch Manager | NMLS 662177
619-208-0460
[email protected]

www.sunstreetmortgage.com | BR NMLS #1540765 | AZBK #0121829 | CA License # 41DBO-61255 | Equal Housing Lender
Each loan is subject to approval. All information, loan programs, interest rates, and conditions are subject to change without notice.

Understanding
Closing Costs

Lender Fees

ORIGINATION CHARGES-The fees charged by the Lender for processing and underwriting of the loan application
(processing fee and underwriting fee). Other lenders may have additional fees such as an Application Fee and a Loan
Origination Fee.
DISCOUNT POINTS- A fee paid in exchange for a reduced interest rate. Also called "Buying Down the Rate". One
point is equal to 1% of the loan amount. Ask your Loan Officer for specific details.

Third-Party Fees

APPRAISAL FEES-The fee paid to a qualified appraiser for preparing an Appraisal Report which provides an opinion
of market value for the property. This fee can range from $495-$800+, depending on the value of the home and the
complexity of the report. Sometimes reinspections are required and can cost up to $150+.
CONDOMINIUM DOCUMENT FEE-When applicable, a condo certification is required to ensure the condo project's
eligibility for financing.
CREDIT REPORT-The fee paid to obtain a copy of a mortgage credit report from the 3 credit bureaus.
TAX SERVICE-A fee typically paid to the tax service agency. The role of tax service is to find if there are delinquent
property taxes to alert the mortgage company in order to avoid tax liens from existing against the property.
FLOOD CERTIFICATION-Federal regulations and secondary mortgagers require lenders to obtain a certification from
a surveyor indicating whether a property is within a flood hazard area and if flood insurance is required.
ESCROW FEES- The escrow company usually serves as a neutral intermediary between all parties involved in a real
estate or mortgage transaction. The escrow company handles all monetary transactions between parties. Once the
transactions have been concluded the seller will receive their funds and the buyer will receive the keys. The escrow
fees can depend on the amount of the loan or the purchase price.
TITLE FEES-A Title Company performs a title search which ensures there are no outstanding issues with the property
such as liens for unpaid taxes, special assessments, judgments, demands, or other legal issues. Other Title related
fees can include endorsements fees, and wire and courier fees.
TITLE INSURANCE-Homebuyers typically need two title insurance policies: an Owner's Policy which protects the
homeowner and a Lender's Policy which protects the lender. Title insurance protects against problems with a title when
there is a transfer of property ownership.
RECORDING FEES- Fees paid to the County to record the new Deed of Trust, ensuring that you are the new official
owner of the property.

Kathy Trolinger

Loan Officer |Branch Manager | NMLS 662177
619-208-0460
[email protected]

www.sunstreetmortgage.com | BR NMLS #1540765 | AZBK #0121829 | CA License # 41DBO-61255 | Equal Housing Lender
Each loan is subject to approval. All information, loan programs, interest rates, and conditions are subject to change without notice.

UNDERSTANDING
CLOSING COSTS

RESERVES FOF AN IMPOUND/
ESCROW ACCOUNT
(if applicable)

Think of this as your savings account within your home loan for taxes and
insurance. When you close escrow, the lender will collect a certain number of
months upfront to set up the impound/escrow account so that sufficient monies
are available when the property tax and insurance premium are due. The number
of months collected for property taxes depends on the exact month in which you
close escrow. The lender usually collects 2 months of your insurance payment to
have as reserves. This is YOUR money and not a fee. When you sell or refinance
your home, you will receive a refund of any remaining balance in this impound/
escrow account.

In California, taxes are paid in 2 installments and are due by December 10th and
April 10th:

Taxes due in December are for July 1 to Dec 31 of that year.
Taxes due in April are for Jan 1 to June 30 of that year.

PREPAID ITEMS (Interest, Taxes and Insurance)

PREPAID INTEREST - Prepaid interest is collected by the lender to pay for the
interest charges for the remainder of the month during which the loan closes
escrow. I always say, "Mortgage - you payback. Rent - you pay forward." In
In other words, when you pay rent, you are paying for the upcoming month BUT a
mortgage payment covers the previous month's interest.

Example - If you close escrow on January 10th, there are 21 days remaining in
the month. Therefore, you will be charged 21 days of interest for January. See the
example below.
First Payment Date - March 1st, this is why it feels like you got to "skip" a payment.
PREPAID INSURANCE - At the close of escrow, you will prepay the annual
premium for the Homeowner's Insurance on your property. Your home will then
be insured for the Ist year.
PREPAID PROPERTY TAXES - At closing, the buyer is responsible for paying
the prorated property taxes due from the date of closing through the end of
the tax billing cycle. Similarly, the seller is responsible for paving the prorated
property taxes due from the start of the previous billing cycle through the close
of escrow date.

Kathy Trolinger

Loan Officer |Branch Manager | NMLS 662177
619-208-0460
[email protected]

www.sunstreetmortgage.com | BR NMLS #1540765 | AZBK #0121829 | CA License # 41DBO-61255 | Equal Housing Lender
Each loan is subject to approval. All information, loan programs, interest rates, and conditions are subject to change without notice.

ROAD MAP TO
HOME LOAN
SUCCESS

Must do ASAP! CONDITIONAL LOAN APPROVAL - Once your

INITIAL CONTRACT DEPOSIT - Make sure that loan file is reviewed by our underwriter,

you deliver the initial deposit in the format and conditional

timeline agreed upon in your sales contract. As loan approval will be issued and any pending

part of our 5 Star Service. we provide a Fed Ex borrower documentation will be requested.

label so you can send your Earnest Monev Check Please

to escrow. provide any requested documentation ASAP.

INSURANCE - Choose your homeowner's insurance CLOSING DISCLOSURE - Once your loan is

provider and provide us with a copy of the quote. approved,

For your convenience, we can provide a quote we will issue a Closing Disclosure which you will

from a trusted insurance agent. need to sign electronically on the day of receipt.

VESTING - Determine how you want to hold This will trigger the 3 day mandatory wait time
title to the property. For your convenience, we
can provide a quote with a chart showing you The Final Stepsbefore you can sign the final loan documents.

the options available.

BORROWER DOCUMENTATION - Make sure to

provide any documents we request as quickly as FINAL LOAN APPROVAL - When all underwriting

possible to ensure a timely closing. conditions are satisfied, you will receive final loan

approval and your loan will be "clear to close"

What's Next? SIGN LOAN DOCUMENTS - Escrow will contact
you

INITIAL LOAN DISCLOSURES - Within 3 days, to schedule a signing appointment with a notary.

we will send initial loan disclosures for vou to WIRE FUNDS TO CLOSE - At the signing, you

acknowledge via an electronic signature. Please will be

sign these upon receipt. provided with printed "Wiring Instructions" which

APPRAISAL - We will be ready to order the you can use to wire any remaining funds needed

appraisal once the Loan Disclosures are to close

acknowledged. Be prepared to provide vour FUNDING & RECORDING - Once your loan

payment information. funds

Congratulations!and the deed of trust is recorded with the County

Recorder's Office, you will be the official owner

Kathy Trolinger of the property!

Loan Officer |Branch Manager | NMLS 662177
619-208-0460
[email protected]

www.sunstreetmortgage.com | BR NMLS #1540765 | AZBK #0121829 | CA License # 41DBO-61255 | Equal Housing Lender
Each loan is subject to approval. All information, loan programs, interest rates, and conditions are subject to change without notice.

Kathy Trolinger

LOAN OFFICER | BRANCH MANAGER
NMLS 662177
619-208-0460
[email protected]

WWW.SUNSTREETMORTGAGE.COM | BR NMLS #1540765 | AZBK #0121829 | CA LICENSE # 41DBO-61255 | EQUAL HOUSING LENDER
EACH LOAN IS SUBJECT TO APPROVAL. ALL INFORMATION, LOAN PROGRAMS, INTEREST RATES, AND CONDITIONS ARE SUBJECT TO CHANGE WITHOUT NOTICE.