Bankruptcy Home Loan Process
The bankruptcy home loan process follows the general sequence for all loans. The effectiveness of each step’s execution determines the speed of loan approval and closing. It is important for all borrowers to familiarize themselves with the home loan process. Additionally it is important to find a mortgage company that understands the common obstacles that can arise during the home loan process. Working with an experienced bankruptcy mortgage provider can help decrease the waiting time to your home loan’s approval.
1) Client Consultation
We begin the bankruptcy home loan process by talking with you about your financial and personal goals. These answers form the foundation of the loan process because it gives our loan officers the information they need to pursue the appropriate mortgage product.
2) Loan Application
Once we have been able to clearly identify your financial goals, you will complete our home loan application. This application spells out the property address, your employment history, current debt, current assets, and federal disclosures statements.
3) Credit Review and Repair
After the home loan application is received, we run a “tri-merge” credit report, which draws data from all three credit reporting bureaus: Equifax, TransUnion, and Experian. Following careful review of the 3-in-1 credit report, our loan officers consult with you about a number of topics ranging from credit repair, employment verification, and asset accumulation to which loan product is best for your situation. At this time, disclosure documents (informing clients of their rights under state and federal laws) and income and asset verification’s are sent via e-mail or overnight delivery. The speed with which you complete and return this paperwork goes a long way in determining the speed in which the home loan closes.
4) Loan Packaging
With the help of our processing specialists, we package the loan by gathering all the necessary information required to support the loan request. This will include a property title search, appraisal, inspection, and proof of insurance as well as the documents and disclosures that you return to our team. There may additional information required at this point in anticipation of the underwriter’s request. The more complete a loan package is, the more complete the story we tell our underwriters. This, in turn expedites the bankruptcy home loan process.
5) Clearing Conditions
The borrower will receive a list of conditions from the Underwriter that request further clarification or proof in order to clear the loan to close. These can range from proof that a certain debt was settled to additional comparable sales statistics for the appraisal.
6) Home Loan Approval!
The final step of the bankruptcy home loan process is when you obtain the approval for your home loan. At this time, a closing date is set with the closing attorney or the your escrow agent. At the closing, all final documents are signed, witnessed, and notarized. Next we will register the home loan information with the appropriate government bodies. The final step is the transfer of the property ownership over to you.
7) Staying in Touch
Peoples Bank Mortgage keeps in touch with the borrower through a yearly mortgage review, quarterly newsletters, and personalized updates about mortgage trends that can assist you in meeting your objectives in a more cost-effective manner.
Ready to Start?
We look forward to working with you in securing a loan. Contact us, or give us a call today at (843) 606-6058 or toll-free at (855) 406-0197 for a free consultation.