Steps to the Lending Process
PRE-APPROVAL PROCESS | TYPES OF FINANCING | CONTRACT TO CLOSING
Lending a Helping Hand Home to
Summit Home Mortgage, LLC provides the promise of longevity and security along with a commitment to service excellence. We are recognized as the industry leader in mortgage partnerships because we are experts in our business and deliver outstanding service to our customers.
We offer numerous loan product choices to our customers, but our strength lies in the knowledge and experience of our loan officers. Our loan officers have successfully handled all types of home buying situations. Our loan officers are responsive, professional and readily available to customers to answer questions, address issues, and move through the mortgage process smoothly.
Meet Your Lenders
ROCHELLE BIRMANN President
269-615-0129 | NMLS # 1395521
ROCHELLE.BIRMANN@SUMMITHOMEMTG.COM
Rochelle brings with her thirty-plus years in the real estate community. She has an extensive title background that accelerated her career change to loan origination where she has ranked nationally. I believe integrity is the cornerstone of my business. I believe a mortgage should be about building relationships and helping people achieve their home financing goals…it’s not just a transaction. I pride myself in outstanding customer
service and am committed to the entire process. I have the ability to think outside the box to ensure every buyer attains the dream of home ownership.
As an MLO I take a consultive approach to the home loan process by communicating and customizing each loan. Giving solutions to my buyers. My mission is not to just get you a loan it is to get you the right loan. Simply put I love what I do.
JULIE VICKERY Senior Loan Officer
269-806-6671 | NMLS # 438907
JULIE.VICKERY@SUMMITHOMEMTG.COM
Julie is a seasoned Loan officer with over 30 years of mortgage experience in Southwest Michigan. Known for her work ethic, she is dedicated to providing exceptional service, ensuring clear and consistent communication with clients. With a proven track record of closing loans on time, Julie prioritizes building strong, lasting relationships,
guiding borrowers through the mortgage process with expertise and care. Always available to address client’s needs, Julie combines her industry knowledge with a commitment to delivering results, making clients homeownership dreams a reality.
Elizabeth Britner Loan Officer
317-403-0357 | NMLS # 2699562
ELIZABETH.BRITNER@SUMMITHOMEMTG.COM
Elizabeth brings over five years of real estate experience and a deep commitment to client education in every mortgage transaction she handles. Her background in real estate gives her a well-rounded perspective on the home buying process, allowing her to anticipate needs and provide valuable insights throughout the journey. Clients appreciate Elizabeth’s strong attention to detail, organizational skills, and prompt
communication. She is known for being highly responsive and thorough, ensuring that every step— from pre-approval to closing—is smooth, clear, and timely. Whether working with first-time buyers or experienced homeowners, Elizabeth is passionate about making the mortgage experience feel informed, personalized, and empowering.
Contents
STEPS TO THE LENDING PROCESS
Segment 1: The Pre-Approval Process
Prequal vs. Pre-approval
Fully Underwritten Pre-approval
Application Process
Credit Boost
Credit Bootcamp
Notes Page
Segment 2: Different Types of Financing
Loan Programs
Program Highlights
Conventional Loans
Government Loans - VA - FHA - USDA
Down Payment Assistance Loans - Chenoa
Smart Series Loans
Jumbo Loans
Portfolio Loans
Anatomy of a Mortgage Payment
Notes
Segment 3: Contract To Closing
The Big Picture
Closing Costs Explained
Mortgage Process Step-by-Step
Contract to Closing Checklist
Notes
Segment One
THE PRE-APPROVAL PROCESS
Segment One
PRE- APPROVAL BENEFITS
Pre-Qual vs. Pre-Approval
WHILE A PRE-QUALIFICATION AND A PRE-APPROVAL HAVE MANY SIMILARITIES, THERE ARE IMPORTANT DIFFERENCES TO BE AWARE OF.
Pre-Qualification
A quick process that determines the amount a homebuyer will be qualified to borrow prior to officially applying for a loan.
When to get pre-qualified: Before they begin the home search your clients need to get an idea of how much they can borrow.
They’ll provide: A summary of income, assets, and more.
Your Loan Officer will: Tell what loan amount they are most likely to qualify for and loan program will best fit their needs. The whole process takes just a few minutes and can be completed online!
Pre-Approval
An in-depth assessment that gives a conditional approval from the lender for a specific loan amount prior to purchasing a home.
When to get pre-approved: When your buyers are serious about purchasing a home.
They’ll provide: A loan application and documentation such as pay stubs, W-2s, bank statements, and tax returns.
Their Loan Officer will: Upon approval, give you a pre-approval letter to increase negotiation power and help score them the home of their dreams!
Increase your buyer’s negotiating power and win more bids! Buyers with a Fully Underwritten Pre-Approval are more likely to have their offers accepted and it will stand out among multiple offers. Get an edge on the competition. (TELL YOUR BUYERS THE PERKS)
Simply having a pre-qualification or pre-approval letter on your buyer’s side may not cut it when it comes to winning the bid on the house of their dreams. Our Fully Underwritten Pre-Approvals are pre-approved and verified by an underwriter up-front, increasing negotiating power by
• Eliminating the financing contingency in your buyer’s offer. This means you can compete with cash offers!
• Reducing financing anxiety since assets, income, and credit are all fully underwritten.
• Providing more closing date flexibility - these loans can close faster than traditional pre-approvals!
Is
your buyer ready to get pre-qualified or pre-approved?
Regardless of where your buyers are in the home search, its never too early or too late in the process for us to take a look at their credit status.
Segment One
SIMPLE | EASY | CONVENIENT
Application Process
BEGINNING THE PROCESS IS AS EASY AS 1, 2, 3!
STEP 1:
Have your buyers call us
It's time to make a formal application for financing. A quick and easy process, they'll apply online, fill out the application, and we'll take it from there. Have them visit our website to apply!
STEP 2:
Gather the Following Documents Together
• Most recent paycheck stubs covering 30 days of pay, showing year-to-date earnings W-2s for the past 2 years
• Federal tax returns for the past 2 years - ALL pages, ALL schedules, if applicable
• Legible copies of their driver's license or other government issued ID
Your last 2 months statements on requested asset accounts: checking, savings, 401(k) and stocks. They include ALL pages of statements - even if blank. Online statements are acceptable providing they show the account holder's name, account number and sixty days of activity
STEP 3:
Send Us Your Documents
After they've collected ALL documents, they can bring them directly to our office OR send them to us electronically via email.
Buyer Alert!
WHAT IS A TRIGGER LEAD?
• A trigger lead is a marketing product created by the national credit bureaus (Experian, TransUnion, Equifax)
• When your client fills out a loan application and gives a lender permission to pull their credit report, the national credit bureaus take note of the inquiry which they then take that information (trigger lead) and sell it to competing lenders, often within 24 hours
• Your client then starts receiving calls and emails with unsolicited offers from other companies — and it’s completely legal
BEWARE
This could open the door for many issues, including but not limited to:
• Identity Theft
• Unreliable Lenders
• Confusion of the Mortgage Process
• Irritating Phone Calls
Do Not Call Registry
The National Do Not Call Registry lets you limit the telemarketing calls you receive. Stop unwanted sales calls by registering your phone number: Online: Visit DoNotCall.gov By phone: Call 1-888-382-1222 or TTY: 1-866-290-4236 If you register online, you will receive an email to complete your request. You must click on the link in that email within 72 hours in order for your registration to take effect. Visit DoNotCall.gov or call 1-888-382-1222 to verify the status of, or unsubscribe, your phone number on the registry.
Segment One
Credit Boost
THE BEST PRODUCTS & RATE PROGRAMS - FOR FREE!
Why It Matters
• One point or even a credit delinquency on your credit report can mean the difference between getting approved or not for a mortgage. That's why we offer FREE Credit Boost to our customers so that you can be assured that you get the absolute best mortgage program for you.
Where We Focus
Improve overall credit: To potentially allow you qualify for the best mortgage option for you.
Enhance your score: Enabling you to qualify for the best product and rate program.
Clear delinquent credit: Avoid items that affect closings such as judgments, charge-offs, duplicate accounts, and credit disputes.
Eliminate last minute roadblocks: By resolving delinquent credit items that affect closings, we remove the obstacles to ensure a smooth process.
Program Highlights
Customized to your unique profile and cash reserves.
May save you money by qualifying you for a better rate! There is never a charge for this service.
Credit BootCamp
SUMMIT HOME MORTGAGE
WE CAN ASSIST YOUR BORROWERS BY HELPING TO ENHANCE THEIR CREDIT SCORES, SO THEY CAN QUALIFY FOR THE BEST POSSIBLE PRODUCTS AND RATE PROGRAMS AVAILABLE.
The goal of the program is to raise the credit score of an unqualified borrower to a new score that allows them to qualify for the loan program which meets their needs.
Geared to potential buyers who do not qualify for lending only on account of credit issues
• Typical clients need extensive credit attention, such as:
Outstanding collections
Late payments
Charge offs
Previous bankruptcies
• Buyers must have NO CREDIT SCORES or a FICO® under 580 Applicant must apply for a mortgage
• Process could range from 1-12 months
Success Story
A VA applicant applied with us in January 2023 and had a 533 FICO® credit score. Unfortunately, he could not qualify for a VA loan. The applicant entered our Boot Camp and by April 2023 achleved a qualifying credit score and subsequently closed on their new home in May 2023. Success!
Segment TwoDIFFERENT
TYPES OF
as
Conventional Loans Down Payment Assistance Loans
FANNIE MAE & FREDDIE MAC
• Up to 97% LTV for First-Time Homebuyers
• Custom Loan Terms Available (10 - 30 years)
• Loan Amount Limit $806.500.00
Non-Occupant Co-borrowers Allowed
• Gift and Grant Funds Allowed
• 620 + FICO
HOMEPOSSIBLE & HOMEREADY
• Loans Up to 97% LTV - 3% down for first time home buyers
80% Area Median Income (AMI) Limit
• Reduced PMI
• Gift & Grant funds allowed
• 620 + FICO
Government Loans
VA
Up to 100% Financing on Purchases
• 580+ Credit Score
• Must be a Veteran
FHA
• Non-Occupant Co-Borrowers Allowed 580+ Credit Score
• FHA 203K - Standard and Limited - 96.5% LTV 620 Credit Score
• Loan Amount Limit $524,225.00
USDA
• Up to 100% Financing
620+ Credit Score
CHENOA
• 620 Credit Score 2nd Lien Position
• 10 Year Payoff
• FHA Product
Segment Two
Innovative SMART Series LOAN PROGRAMS 2023 CONTINUED
Our SMART Series of Non-QM loans are designed to help increase your competitive position and serve borrowers seeking a loan with characteristics that are unavailable for Qualified Mortgage Loan Products (QM).
SMARTSELF: BANK STATEMENT PROGRAM FOR SELF-EMPLOYED
• Loan amounts up to $3M
• Use 12 or 24 month bank statements or asset based income to qualify
• No tax transcripts or tax returns required
• Min credit score 620
SMARTVEST: INVESTOR CASH FLOW MORTGAGE
• Loan amounts up to $2M
• Fixed rate and adjustable rate interest only options Uses cash flow analysis - not debt ratio
• No tax transcripts or tax returns required
• Allows up to 20 financed properties
SMARTCONDO: FINANCING FOR CONDO PROPERTIES
• Loan amounts up to $2.5M
• Fixed and adjustable loan terms
• Fund non-warrantable condos and condotels
SMARTEDGE: NON-QM JUMBO
• Loan amounts up to $3M
Interest only options for 30- and 40-year fixed rate and 5/1, 7/1, & 10/1 adjustable rate loans
• Qualify using asset based income
• Min credit score 620
SMARTTRAC: A SECOND CHANCE TO QUALIFY FOR A MORTGAGE
Refinance cash out up to $1M
• Fixed and adjustable rate interest only options
• Multiple 30-day mortgage rates allowed
• 12 mo. seasoning on BK, short sale, and deed-in-lieu
SMARTFUNDS: ELIGIBLE ASSETS QUALIFICATION
Loan amounts up to $3M
• Fixed and adjustable options available
• No employment or income verification needed
Min $500K ‘eligible assets’ required to qualify
Jumbo Loans
DREAM BIG JUMBO
Up to $1.5M loan amounts for owner occupied
• Up to 89.99% LTV
• Non-occupant co-borrowers allowed
Only one appraisal required up to $1.5M
Portfolio Loans
BANK STATEMENT LOAN
• Use 12 months of bank statements to qualify
• No tax transcripts or tax returns required
Financing up to $3M and 680+ credit scores
INVESTOR LOAN
• Based on property cash flow
No tax transcripts or tax returns required
FULL JUMBO SERIES
• Up to $3M loan amounts
• 1-4 unit primary residences
• 10 to 30-vear fixed rate terms
Primary 2nd home + Investment Properties
• Financing up to $2M and 660+ credit scores
ITIN
• Allows non-permanent resident aliens
• Qualifies with a ITIN number
Segment Two
MORTGAGE PAYMENTS EXPLAINED
The Anatomy of a Mortgage Payment
What exactly does a mortgage payment involve? Let’s dissect what each mortgage payment includes.
What goes into a mortgage Payment?
After the initial down payment, buyers will make monthly payments based on certain aspects of their mortgage. These consist of:
• Principal Payments
• Interest Payments
• Private Mortgage Insurance
• Real Estate or Property Taxes
Summit Home Mortgage
Jaqua partners with Summit Home Mortgage to provide your clients with convenient, trustworthy and knowledgeable financial advisors. They offer a full line of mortgage products provided by experienced, highly skilled home mortgage consultants who are located directly inside all of our offices. When Summit is the lender, you and your buyers can be confident every aspect of the financing process is receiving expert attention.
Segment Three CONTRACT
TO CLOSING
Navigating the
MORTGAGE PROCESS
Consultation
1
Sit down with your Loan Officer to discuss the mortgage process and your budget for the monthly payment and down payment.
Pre-Approval
Review the Disclosure Package
6
We suggest reviewing all aspects of the disclosure package including the payments, loan program and closing costs. Your Loan Officer will review this with you and make sure you’re prepared for closing.
Income and asset documentation should be provided in order to receive a pre-approval letter with a conditional approval for a specific loan amount.
Find Your Home & Put In an Offer
Work with your real estate agent to find a home and place an offer. Your pre-approval letter will give you the negotiating power you need, and let the seller know that your financing is certain.
Home Inspection
You have the option of hiring a home inspector to evaluate the condition of the home before finalizing the purchase.
Apply for Your Loan
2 3 4 5
Gather all required documents and upload them securely via email, our online portal, or our mobile app. Then you’ll receive the Loan Estimate, in which you’ll need to communicate your Intent to Proceed.
Appraisal & Title Search
Then a preliminary title will be ordered, as well as an appraisal on the home.
Underwriting Review
7 8
While your loan is being reviewed by an underwriter, you may be asked to provide additional documents. Try to respond promptly to inquiries and maintain status quo around your finances.
The Closing Disclosure
This five-page document contains the locked-in costs of your loan. You’ll review, sign, and return the Closing Disclosure to your Loan Officer within 3 days of receipt.
Closing
9 10
Signing of the closing document will take place at the lender’s or agent’s office, where you’ll be asked to review and sign several documents with both parties present. Once everything has been signed, you’ll receive the keys!
Notes Page
Segment Three
CLOSING COSTS EXPLAINED
Wondering what all those costs associated with closing on a home mean?
COMMISSIONS: Usually 6% of the sales price divided equally between the buyer and seller agents, this is the only payment the real estate agent receives. The seller typically handles this, but it can be required. split equally between the buyer and seller.
HOMEOWNERS INSURANCE: If the mortgage company covers the homeowners insurance, then 2 months of premiums are required.
LOAN ORIGINATION FEE: Also called a “point”, this fee is usually 1% of the total loan amount. The buyer usually handles this, though in some areas it may be split between the buyer and seller.
LOAN DISCOUNT (POINTS): A loan discount may be given for every point of the loan that is paid in advance. Paying multiple points results in lower principal payments and a discount on the interest rate charged. It’s beneficial to pay as many ‘points’ as possible to save money over the life of the loan. The buyer usually handles this, unless the seller agrees to help in some way.
APPRAISAL FEE: This fee is associated with the third-party appraiser who is trusted with stating a fair value for the property. The buyer, regardless of whether or not the home actually is sold, usually pays this fee.
ESCROW ACCOUNT FUNDS: It is common for there to be a special escrow account set up, guaranteeing that funds will be available to cover property taxes and homeowner’s insurance. This is handled in advance, and is normally slightly higher than the actual expected amount to cover instances of delayed payment.
LENDER’S INSPECTION FEE: Associated with new construction or required repairs, this pays an independent inspector to verify that the new home will be habitable and was constructed with materials worth the assessed value. The buyer pays this.
HAZARD INSURANCE PREMIUM: This is charged for homes built in areas that they probably should not be built in. Hurricanes, mortgage insurance, then 2 months of premiums are required. earthquake, and volcanoes all qualify in rendering a property an insurance hazard.
CITY PROPERTY TAXES: If the mortgage company covers the property taxes, then 2 months worth of expenses are required.
FLOOD INSURANCE PREMIUM: Depending on the state, most mortgage companies require homes in traditional flooding zones to carry special flood insurance.
COUNTY PROPERTY TAXES: If the mortgage company covers the property taxes, 2 months worth of expenses are required.
INTEREST: Most mortgage companies require the interest that will be acquired on the loan before the first payment be handled in advance. The buyer typically handles this.
ANNUAL ASSESSMENTS: If your HOA requires an annual assessment, this fee may be included in the loan payment.
CREDIT REPORT FEE: A credit report is required by the lender to verify credit-worthiness, income verification, and that there are no other properties tied to the buyer that are distressed.
Segment Three
MORTGAGE, STEP-BY-STEP
1. BECOME PRE-APPROVED/CONDITIONAL APPROVAL
Becoming pre-approved is important while helping your buyer house hunt. They’ll know how much house they can afford so that time is not wasted looking at properties that are not within their price range.
2. GET ORGANIZED
Your buyer will need to provide numerous important documents to help verify expenses and income. This allows us to give them the most accurate assessment of how much they can afford to borrow.
Gather these documents:
• W-2s from the last 2 years
• Last 2 months of any stock, mutual Pay stubs for last 30 days
• Copy of divorce decree (if applicable)
• Last 2 months of bank statements (all banks and all pages)
3. APPLY FOR LOAN & PROVIDE DOCS
Employment & Income Info:
• W-2s from the last 2 years
• Pay stubs for the last 30 days, showing YTD earnings
Most recent tax return
• If self-employed: tax returns for past 2 years
• For VA applicants: DD214 and Certificate of Eligibility
Assets:
Last 2 months of all bank, stock, mutual fund, and/or IRA/401k statements (all pages)
Liabilities:
• Divorce or bankruptcy papers
Alimony payment info
• Child support info
Property Info:
• Residence history for past 2 yrs
• Contract of sale on present home (if applicable)
Current real estate purchase contract
Additional Info:
• Driver’s license
Next: Receive Loan Estimate and communicate Intent to Proceed.
4. UNDERWRITING/APPROVAL
Once your buyer has completed the loan application, we will begin the loan process which includes researching credit history, employment history, assets, and the property value of the home.
At least 3 days before your buyer closes on the home, they will receive an Initial Closing Disclosure. It is critical they confirm the receipt immediately.
5. CLOSING YOUR LOAN
Bring a cashier’s check for your down payment and closing costs (if applicable)
Review and sign all documents
Now the loan is complete!
CHECKLISTContract to Closing
1. Lender pre-approval of buyer.
2. Contract is signed and dated, and your earnest money deposited. No cash allowed
3. Loan application signed. Refer to the second page list of the initial loan documentation required at application. You should decide whether you will lock or float your rate. If you lock your rate, you will be guaranteed that rate for 30 days and will no longer have to worry about market fluctuations.
4. Property inspection and/or pest inspection ordered by buyer or Realtor. A pest inspection, otherwise known as a WDO or Wood Destroying Organism, is required on FHA and VA loans. Also, if the home has a well or septic, additional inspections may be required as well.
5. Send a copy of the WDO report to the lender so it can be determined if there will be any lender required repairs.
6. Loan processing begins. The processor will verify title work as well as your income and employment, and your rental history (if applicable).
7. Appraisal ordered by lender.
8. Appraisal complete. The appraisal may contain lender required repairs.
9. Seller orders repair work with priority to lender required repairs, then to buyer repairs. Notify the lender once repairs are complete and we will ask for a re-inspection by either the appraiser or pest inspector so the lender can be issued clear compliance reports.
10. Initial review by loan processor. Additional documents may be requested at the time prior to submission to the underwriter. Your cooperation in obtaining these documents helps to ensure we meet all contract deadlines.
11. File will be given to the underwriter, who will issue the approval for your loan. Any final/additional documents to satisfy approval will be requested at this time. Once again, your cooperation in obtaining these documents helps to ensure a timely closing.
12. The REALTOR or title company will order the survey if required.
13. Survey approved by the title company.
14. Repairs, if any, are completed and approved by the lender and buyer.
15. Underwriter reviews all additional documents and clears the file to close.
16. Closing date set.
17. Cosing package is sent to the title company, who will prepare your settlement statement and send it to our closing department for approval.
18. Your Mortgage Loan Specialist confirms the final dollar amount needed at closing and will call you to review final numbers with you. Buyer must bring a cashier's check or arrange a wire transfer to the title company. Bring a valid photo ID.
19. Close on your home.
20. Don't forget your keys and garage door openers!
Notes
Notes
