Many people describe the mortgage lending process as confusing. With the advent of Web the process of securing a loan is becoming easier. We pride ourselves in making the loan process as uncomplicated as possible... whether you apply online or in person. Our goal at Spruce Mortgage is to give you superior service as we help you to secure your loan.

Whether you apply for your loan on the Internet, or you speak with a one of our mortgage consultants by phone, all lenders require an actual application. The form is standardized and known as the "1003'' which is the Fannie Mae designation for this form.

We will verify information about you the borrower(s) and will require additional property information. Borrower information will include verification of income and employment, assets, and credit history of the applicants.

You, the applicant, as part of your application process, will provide some of this information. For example, you will be requested to provide copies of W-2 forms for 2 years, pay stubs, and bank statements for asset verification. Other information, such as your credit history, will be obtained directly from the credit bureaus (even if you have a current credit report on hand). We also order an appraisal and a legal description of the property, such as a title report. In the case of a purchase, other inspections may also be done, such as a pest inspection, and are separate from the appraisal.

The Approval Process - During the "processing" and/or "underwriting" period, your credit, assets, income and other qualifying information are verified and compiled. The underwriter then reviews this information and either approves it outright, approves with conditions to be met, or declines it.

Conditions are further documentation or verifications we may need to finalize your loan before funds can be dispersed. Because the loan may go through several review processes prior to actual funding of the loan, conditions are often identified towards the end of the process. When all conditions are met, your loan documents are drawn up and forwarded to the title company or closing attorney.

At closing you will sign the documentation to take ownership of your home (if you are purchasing) or transfer your home loan to us (if you are refinancing), as well as get title insurance for your home. If your loan is an ‘escrow’ loan, you will deposit an amount to fund your escrow account, which we will maintain to pay the property taxes and hazard insurance premiums on your home as they come due. You will receive a ‘settlement statement’ that will detail all of your expenses in the transaction, as well as how your loan proceeds were distributed. You will also receive a title policy that insures your ownership of the property. If there are repair items to your home that have not yet been completed, the title company or closing attorney may hold the funds to make the repairs and have you, the seller and the contractor who will do the work sign an escrow agreement for the funds.