Guild Mortgage Basics and requirements for Application

Guild Mortgage upholds an enduring presence in the lending community with over five decades of experience in providing loans, service and expertise to home buyers.

Guild Mortgage basics

Below are some of the basics you need to understand when it comes to mortgage in general and not just as it relates to Guild.

  • Adjustable Rate: your interest rate is periodically adjusted based on an index.
  • Appraisal: this is used to determine if a home’s sale price are appropriate.
  • Closing cost: this includes origination fees, escrow fees, title insurance, mortgage insurance and discount points.
  • Amortization: this has to do with paying off debt over time and part of each payment goes toward the loan principal while the other part goes toward interest.
  • Discount points: this is usually a one time pre-paid interest charges on your loan and each point is 1% of your total loan amount.
  • Down Payment: this is a portion of your total home cost paid up-front.
  • Closing Disclosure: this is a five-page document that contains all final details about your mortgage.
  • Escrow: This is where your earnest money deposit is held by a third party until the closing of your transaction.
  • Origination Fee: this fee is paid to the lender for the cost of processing the loan.
  • Loan Estimate: lenders are to provide an estimate of the fees that will be due at closing to the borrowers.
  • Fixed Rate: throughout the loan period, your interest rate will remain the same.
  • Refinancing: a time may come during the period of your loan that you might wish to refinance either to consolidate debt or take advantage of lower interest rates.
  • Underwriting: this process is used to know how much of a risk you and your mortgage will be to their company and they evaluate the following

Requirements needed to start a loan

  • Be prepared to be verified by transcripts or diploma if you were a full-time student at any time in the past two years.
  • Supply Landlord’s name and address if you rent (cover a two year period).
  • Self-employed and commissioned borrowers:
  1. A year-to-date profit and loss statement
  2. Balance sheet
  3. Signed copies of federal tax returns (for the past two years)
  • Schedule of real estate owned including:
  1. Taxes and insurance amounts
  2. Rental agreement
  3. Type of loan
  4. Type of property
  5. Monthly principal and interest
  • Year-to-date pay stub and W-2 forms (for the past two years).
  • Account numbers, names, address of each bank account where deposits are held, zip codes of each depository and two months statement for each bank account.
  • A copy of your earnest money check and Sales Contract.
  • Present and previous employers name (s) and addresses (covers two full years).

 

[alert-warning]Be sure to review all documentations that you will be presented with before signing any documentations.[/alert-warning]

How to Apply

To apply for Guild Mortgage, you can follow this link here.

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