Page 17 - KHovanian Homes - Pathway to Homeownership

Section 3 | Financing Your Dream Home Loan Application Once you have signed the Purchase Agreement, the next step is to confirm the financing details for your home. K. Hovnanian® Homes has developed relationships with some of the area’s leading financial institutions and have created innovative programs just for our customers in order to make your dream home a reality. Our goal is to provide you with the best financing programs available so that your new home purchase is as easy and affordable as possible! Please note, incentives are conditioned upon the use of K. Hovnanian® American Mortgage, LLC or one of our three other preferred lenders. In this case, the greater of the first $10,000 of incentives offered or 3.0% of the sales price is tied to the customer using K. Hovnanian® American Mortgage, LLC. If a customer chooses to not use K. Hovnanian® American Mortgage, LLC, any incentive offered will be reduced by the greater of the first $10,000 or 3.0% of sales price. Unless otherwise specified, incentives may be applied toward closing costs, upgrades or options. K. Hovnanian® American Mortgage, LLC. MORTGAGE APPLICATION PROCESS To apply for a mortgage, you’ll need your employment, income, assets, liabilities, and real estate owned for all borrowers. Your lender will verify this data, so it is important that it is complete and accurate. After the mortgage application is complete you will receive an approval letter from your lender—don’t worry if you see conditions, it’s a common occurrence! The sale of a previous home or evidence of liquid funds for closing are two examples. Please do not send original documents to the mortgage company when submitting documentation. We encourage you to keep a copy of everything you send in your personal files. Please discuss any concerns you may have about such conditions with your lender and obtain any requested documentation as soon as possible. The lender should work with you to satisfy all conditions requested by the mortgage company. MORTGAGE DOCUMENTS Below is a list of documents you may encounter with financing your home. Letter of Approval Notification that you have been approved for a specific mortgage amount. Document Checklist This checklist contains a list of the documents the mortgage company requires you to submit prior to issuing a Commitment. Credit Report and Appraisal Your lender will order a credit report and an appraisal. Your credit report indicates the amount of money you owe to each of your creditors, minimum monthly payments and your payment history. The appraisal confirms the value of the home you are purchasing and is ordered from an independent appraisal company. Loan Estimate The Loan Estimate provides a detailed breakdown of your estimated closing costs which you will incur at closing. Some of the numbers listed on this form are pro-rated (i.e., homeowner’s insurance, association fees, property taxes and interest) and are subject to change based on the actual date of closing. Others are set fees that should remain the same. Closing Disclosure A closing disclosure provides the final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and closing costs. NOTE: You will not receive a Closing Disclosure if you choose a reverse mortgage you will—instead— receive a HUD-1 Settlement Statement and a final Edition July 2019 | 11