For Borrowers

Education and being thorough with our clients is one of our core company values at Liberty Home Mortgage. On this page, you will find helpful information and answers to many questions which you might have as you travel through the home buying or refinancing process. This page was created to help better explain which loan is the right one for you and your family, the loan process and what occurs after your loan is closed.

What paperwork should I put together in order to qualify for a loan with Liberty Home Mortgage?

This list is not all inclusive nor and every situation is different, but it does cover much of what you will need to provide to our team at Liberty Home Mortgage:

• 2014 & 2015 w2's and/or 1099's
• Pension Awards Letter (if you receive this)
• Social Security Awards Letter (if you receive this)
• 2014 & 2015 personal tax returns (all pages and all schedules)
• 2014 & 2015 business tax returns (all pages and all schedules)
• Last 2 months of bank statements (all pages)
• 2 most recent paystubs dated within the last 30 days
• Valid driver's license & social security card
• Bankruptcy papers (all pages and all schedules)
• Divorce Decree (all pages)
• Separation agreement (all pages)
• For those who collect child support, letter from Child Support Enforcement Agency showing the last 12 months of receipt of child support and birth certificates for the children.
• For those who PAY child support, letter from Child Support Enforcement Agency stating that there are no arrearages
• Last 12 months of cancelled rent checks (if you rent)
• Name & phone number for whomever you wish to use for homeowners insurance
• Name & phone number of your landlord (if you are renting)
• Phone number for human resources for your employer
• Copy of your business license
• Copy of Articles of Incorporation
• DD-214 & Certificate of Eligibility
• Year-to-date profit and loss sheet
• In 2-4 sentences, type, sign and date letters of explanation on any bankruptcy, foreclosure, collections or deposits greater than $100 into your bank account which are not payroll deposits.
• Accurate Address history for where you have lived from today back 2 years.
• Accurate employment history from today back 2 years including the employer name, address, city, state, zip, phone number, position held, start & stop date and phone number for human resources.
• If you are a recent college graduate, copy of your diploma and transcripts along with the full name, address, city, state, zip code, phone number for admissions and start & stop dates for school.
• For any collections which are paid off, verification letter stating that they are paid off.
• Cancelled earnest money check (for purchases).

What if I have had a bankruptcy or foreclosure?

At Liberty Home Mortgage, we understand that life sometimes throws curveballs and has some bumps at unexpected times. For that reason, bankruptcy, foreclosure and negative marks on a credit report are acceptable in certain circumstances and situations. These situations are analyzed and decisions are made on a case-by-case basis.

Is it possible to raise a credit score in a short period of time?

Even though every single individual has a unique score and following the same process for two different people might not end in the same exact result, there are a few common principles to follow. Pay all of your accounts on time, keep your credit card balances low relative to their limits, try to have multiple accounts reporting to your credit report, try to have long established accounts and do not allow multiple people to check your credit. Ask questions before allowing your credit to be pulled.

Pre-Qualification vs. Pre-Approval - What is the difference?

Every mortgage lender will apply a different definition to a Pre-Qualification versus a Pre-Approval. At Liberty Home Mortgage, we believe a Pre-Qualification is simply having a conversation with an individual and based on what they tell us, making a determination on whether or not they may qualify. It is extremely important to know that before going out and looking at homes or having a real estate agent drive you around to look at homes, a Pre-Qualification is not recommended. A Pre-Approval is a much more thorough process in the process of getting approved for a mortgage loan. At Liberty Home Mortgage, we require a full credit check with the major credit reporting agencies, collection and review of income and assets and an analysis of any major derogatory accounts before issuing a Pre-Approval. For this reason, our Pre-Approvals are much more trusted and respected in the industry.

Fixed interest rate vs. Adjustable interest rate - Which loan is better?

This is a question which always comes up. Since every situation is different, there is no exact answer; however, Liberty Home Mortgage truly believes that being safe and conservative is always the best financial decision for a family which is why we will more oftentimes than not, recommend a fixed interest rate mortgage loan. Adjustable rate mortgage loans are good loans for those who do not believe that they will be in the house for a long time or are expecting a significant increase in income in the near future and will be putting down a significant amount of money thus ensuring that they have equity in the case of having to refinance into the future. In the end, every situation is analyzed and what is in the best interest of the borrower is what Liberty Home Mortgage does.

Home Equity Loans - What are they and how can they be used?

A Home Equity Loan is a type of mortgage loan in which the equity of the home is used for some other purpose. Those purposes may include, but are not limited to, paying off other debt (such as credit cards or other types of loans), buying additional real estate (such as rental properties), investing in the kids' college tuition or making home repairs or upgrades. Many lenders actually advertise taking out equity to go on a dream vacation - we do not. We believe in a conservative financial approach to debt because in the end, debt-free is what everyone strives for. Even though Liberty Home Mortgage is not a financial advisor, we do believe in sound management of one's financial affairs. Knowing this, all of our representatives are trained to take this type of approach with our clients.

How does a rehab loan work?

Rehab Loans provide money to purchase a home and then make additional upgrades or repairs to the homes. The borrower is given one single loan and has one single payment; however, the loan is disbursed accordingly such that the seller (as in the case of a purchase) is paid off immediately and the contractors are paid as work is completed. For the most part, rehab loans do not allow a borrower to do the work themselves unless they are skilled and trained in that area of renovation. More oftentimes than not, the borrower must higher licensed & bonded professionals to complete the work.

Who is responsible for ordering an appraisal?

At Liberty Home Mortgage, we follow the Home Valuation Code of Conduct Rules and do not order appraisals directly from an appraiser. We make a request to an Appraisal Management Company who is a third-party, non-affiliated company who then goes and selects a local appraiser who then goes out and completes the appraisal. That appraisal is then returned to the Appraisal Management Company who then sends the appraisal back to Liberty Home Mortgage.

Is the mortgage loan with the lowest interest rate always the best loan?

No matter what someone is shopping for, a car, a mortgage, a house, they always seem to search for the "lowest price" or "lowest rate". Unfortunately, finding the "lowest" of something does not necessarily mean that you are finding the "best" that there is available. In the world of mortgages, the absolute lowest rate oftentimes comes in the form of a Variable Rate Mortgage or additional fees, costs and points. Do not be fooled by advertisements on the internet or television commercials. The correct way to shop for anything is to ask questions, get educated and find the people who will deliver what they promise.

Is it good to use a real estate agent to help buy or sell a home?

This question is like asking, is it good to go to a doctor when you are sick or diagnose yourself by going online and googling it? A real estate agent is almost an absolute must when it comes to shopping for a home or selling a home. They are an invaluable asset and oftentimes put out most of the fires which arise while buying or selling a home. An agent ensures that the contract is abided by, it is written correctly, the processes of buying or selling a home are followed properly and their client's best interests are followed. A real estate agent has a fiduciary duty to operate in the best interest of their client. Additionally, real estate agents are some of the most service-oriented professionals across any industry. Not using an agent for a real estate transaction is often a major mistake and leads to terrible consequences down the road. Liberty Home Mortgage prides itself in having a large real estate agent network and is highly respected within the real estate agent world.