Mortgage 101

Pre-Qualification
As you get nearer to finding your home, you can contact a Sovereign Mortgage^® Representative to obtain a pre-qualification. A pre-qualification letter can increase your bargaining power with a seller because he or she will know that you have been approved for financing and will be able to close quickly.

To obtain a written pre-qualification, complete our online pre-qualification or speak with a Mortgage Representative.

Apply
Contact a Sovereign Mortgage Representative at 877-729-4801, visit your nearest Community Banking Office, or apply online.

When you are ready to apply, please be prepared to provide the following personal and property information:

Personal Information

• Home address for the last 2 years
• Social Security Number
• Employment information for the last 2 years, including employer name, address, and phone number
• Income information, including salary, overtime, commissions, bonuses, interest, dividends, pension, and any other source of continuing income
• Bank accounts, including bank name, account number, and type
• Other assets, including automobiles owned, retirement accounts, and bonds
• Liabilities, including creditor names, outstanding balances, and monthly payments for all debts such as alimony, child support, 401(k) loans, or co-signed loan
• Real estate owned, including property address, market value, outstanding liens, rental income, mortgage payments, taxes, insurance, and association dues

Property Information

• For purchase transactions
  • Sales contract
  • Name and phone number of real estate agent (if applicable)
  • For a condominium or a Planned Unit Development (PUD): name of project and phone number of association

• For a new construction
  • Year land was acquired
  • Original cost of land
  • Amount of liens
  • Estimated cost of construction

• For refinance transactions
  • Year property was acquired
  • Original cost of home
  • Cost of improvements (if applicable)

• Amount of outstanding liens

Closing
Soon after you apply for your loan, you will receive notification about whether your mortgage is approved. If it has been approved, the mortgage process will end with your closing or settlement.

The actual closing process differs from state to state. Your closing agent will advise you of the documents and closing costs that you will need to bring to the closing. You may want to seek the advice of an attorney who will be able to advise you on the specifics of your transaction and assist you at the closing.

Some of the documents you will be asked to provide at or before your closing include a homeowner's insurance policy and a paid receipt. Your closing costs will include charges for points, title insurance, escrows, and other fees.

Closing costs will vary from case to case, but you should expect your total closing costs at 3% to 6% of the purchase price of the home you are buying, or 3% to 6% of the loan amount of the home you are refinancing.^*