Homebuying Guide: How to Secure a Home Loan From Town Square Mortgage
At Town Square Mortgage, we bring together the best of personalized service and technology with the goal of making getting your home loan as fast and easy as possible.
Your dedicated Loan Originator will work with you throughout your entire loan journey. They will support you by phone, text or screen sharing and communicate with you via our easy-to-use mobile app.
You can use our easy-to-use mobile app or Web app to upload documents, track your loan status and get the answers you need from virtually anywhere.
Talk with your friendly TSM Loan Originator.
Download the mobile app (or access the Web app) and complete your application.
You can do it on the App on your own or with help from your Loan Originator.
Determine how much house you can afford.
Your Loan Originator can help review your qualifications and available funds for your down payment to determine your budget for a new home.
There are 4 qualifying pillars of a home loan:
Income: This is your capacity to pay back the loan and includes the source and type of income (salary, commission, self-employment), length and stability of income and a review of your monthly debts.
Assets: This is your readily available money and savings, including money market funds, assets or investments that can be converted to cash, cash gifts from family members, cash from down payment or closing cost assistance programs, grants or matching funds.
Credit: This is your credit score from one or more credit agencies. A score of 580 and above typically qualify you for a home loan.
Collateral: This is the value of the home you plan to buy. Your home is pledged as security against the loan.
To get an idea of potential loan scenarios, visit our Mortgage Calculator.
For own vs. rent scenarios, visit the Own vs. Rent page.
For more information, visit the Four Pillars of a Home Loan.
Consider your down payment funds.
Down payments vary by the type of loan solution. Most require down payments between 3% to 20% of the home price. Some, such as VA loans, allow zero down payment.
We offer support with Down Payment Assistance programs to access cash for your down payment for which you qualify.
If you are a first-time homebuyer, we offer programs designed specifically to help you.
Your Loan Originator will help you review the options and access the programs that will best support you.
Receive your pre-approval letter with the help of your Loan Originator.
Once you complete your application, you will receive a pre-approval letter that shows exactly how much you can afford.
You can utilize this letter in making offers to gain a competitive advantage, especially where there are multiple offers.
Shop for your dream home, make an offer and get it accepted.
Now is the time to connect with a real estate agent and find a home you love.
Your real estate agent will help you make offers and get you under contract for your new home. Having your pre-approval letter can give you a competitive advantage, especially where there are multiple offers.
Once you are under contract, your Loan Originator will work in partnership with your real estate agent to ensure that important deadlines are met for an on-time close.
Complete your home loan application.
Now it’s time for you to complete your application we can begin working on your loan.
At this time, your Loan Originator will help you determine the right home loan solution for you. Different types of loans offer varying benefits for the various types of homebuyers.
We offer a wide variety of types of loan solutions including Conventional, FHA, VA, Jumbo, Non-QM, USDA, ITIN and more.
Finish Your Documentation, Appraisal, Contingencies & Underwriting.
Your Loan Originator will work with you to handle everything that is needed to finalize your loan.
You will upload your documents (such as tax returns, pay stubs, etc.) via our mobile App or Web App. Our in-house Processing team will review your documents to ensure that everything that is required has been received.
An appraisal of your new home will be ordered to ensure that it meets the fair market qualifications for your loan.
Our Underwriting department will review your files to ensure that your documentation meets the requirements to close your home loan. They will identify any contingencies to your loan, such as a request for a recent paystub, and prepare your file for closing. We do everything in-house so there’s no waiting.
Conduct Your Optional Home Inspection.
Your real estate agent can assist you in scheduling a home inspection by a certified home inspector.
During this inspection, the inspector will inspect the workings of the home (such as the HVAC equipment, appliances, plumbing, etc.) to identify any issues. Your real estate agent can help negotiate any necessary repairs or other solutions before you become the homeowner.
Pre-Closing: Finalize Loan Approval.
You are very close to closing your loan!
You will receive your closing disclosures with all your loan details for your review.
This gives you an opportunity to review your monthly payment, down payment, interest rate and closing costs.
It will also detail your conditions to close which could include submitting the latest pay stubs, employment verification, confirmation of funds available for closing (your down payment), updated income/asset documentation, a letter of explanation for a recent credit inquiry, a gift letter or clarification of information in your tax return.
Sign Your Loan Documents Digitally or In Person.
At this time, you will pay your down payment and loan closing costs.
And sign your loan documents!