How do I apply for a mortgage?
Our application process can be completed fully digitally. All of your information and documentation needed for a mortgage application can be entered on our convenient application portal. Once you have created a login for our portal, you will be able to log back in at any point to check on the status of your application.
What do I need to apply for a mortgage?
There are several documents that will be needed for our loan team to be able to make a decision on a loan. You don't need to have these documents at the time of application, but it may help speed the process along to have them on hand when you apply.
The documents are:
- Most recent paystub showing gross year-to-date income
- Last 2 years of W2s
- Last 2 filed federal tax returns
- Most recent bank statements
- Most recent mortgage statements for any properties you own with mortgages against them
- Insurance policies for any properties you own
If you are retired:
- Current Social Security benefit letter
- If you receive a pension or annuity, a letter from the managing company stating your monthly benefit
- Most recent statements for any retirement or investment accounts that you use as income (401K, IRA, etc.)
If you are a business owner
- Last 2 years of business tax returns (if tax returns for the business are filed separately from your personal tax returns)
What should I expect after submitting a mortgage application?
After you submit an application, your loan officer will reach out to you to ensure that all needed details of the application are filled out. They will also coordinate the delivery of the needed financial documents. Using our online application system, you can upload all of your financial documents right to your loan officer.
Is there anything I should or shouldn't do after applying?
- It is recommended that you do not take out other loans or credit cards during your mortgage application process. If you take out additional loans, it can affect the underwriting process of your application and in some cases, may lead to a loan being denied that might otherwise be approved.
- If you are expecting any changes in employment or income, this should be discussed with your lender.
What are the disclosures I received after applying?
- Loan Estimate (LE): provides an estimate of the terms and costs associated with your mortgage loan, including interest rate, monthly payments, closing costs, and loan terms. The Loan Estimate is provided within three business days of submitting your mortgage application.
- Borrower’s Certification and Authorization: acknowledges that you, as the borrower, have willingly entered into this loan application process and that the lender will be proceeding with the underwriting process. You are authorizing that the information you provided on your application is correct. You are also giving permission for your lender to obtain verifications as it relates to the loan application such as employment and home owners insurance verifications.
- Mortgage Servicing Disclosure: outlines whether the lender intends to service the loan themselves or transfer the servicing to another company. It also provides information on how to make payments, contact customer service, and handle any issues related to loan servicing.
- Hazard Insurance Authorization: covers what kind of insurance you will need to have on the property being used as collateral for the mortgage.
- Equal Credit Opportunity Act Notice: states that the lender is operating within the confines of the Equal Credit Opportunity Act and cannot discriminate against applicants based on race, color, religion, national origin, sex, marital status, or age.
- Fair Credit Reporting Act: states that the lender is operating within the statutes of the Fair Credit Reporting act in connection with your application and subsequent loan. Also, if the borrower is late on payments under this loan, late payment information will be reported to the appropriate credit bureaus.
- Privacy Policy Notice: explains how the lender collects, uses, and protects your personal information throughout the mortgage application process and during the life of the loan.
- Escrow Account Disclosure (if applicable): If your lender requires an escrow account to cover property taxes and homeowners insurance, you'll receive a disclosure that outlines how the escrow account works and how funds will be managed.
- Homeownership Counseling Disclosure: outlines information about homeownership counseling services available in your area. This disclosure encourages borrowers to seek out counseling to better understand the responsibilities of homeownership.
- Borrower Consent to the Use of Tax Return Information: gives the lender authorization to access and view information on your tax returns. This allows the lender to make informed underwriting decisions.
- Wisconsin Marital Property Application Disclosure: is a document stating that as the borrowers, you understand that Wisconsin is a marital property state, and the mortgage you are pursuing is on a property that is in the state of Wisconsin.
- Acknowledgement of Intent to Proceed: states that you have reviewed the initial disclosures and intend to proceed with the mortgage process.
- IRS 4506C Request For Transcript of Tax Return: is a document that allows the lender to acquire a transcript of previously filed tax returns from the IRS. The transcript provides a summary of the tax return information that the IRS has on file which the lender can then compare to the information on the application.
If you have applied for an Adjustable Rate Mortgage (ARM)
- Wisconsin Variable Rate Loan Disclosure: provides you with information about the terms and conditions of ARM loans.
- ARM Disclosure: provides details on the specific type of ARM you are applying for, detailing rate structure, how long the initial rate will last, when it can change, what determines the new rate and any rate floors or ceilings.
What do I do after being approved for a mortgage?
Depending on the type of loan, there are a few things you will need to do before your mortgage closing:
- You may be required to pay an administration fee to fund the ordering of the appraisal of your property.
- If your property is being appraised, make sure your home is prepared for the appraiser to walk through and inspect it. Be ready to coordinate a day and time for the appraiser to view the home.
- If you are buying a new home, you will need to have your homeowners insurance policy ready and have a year of premium paid for before the closing date. You should have the effective date of the insurance be the day of your closing.
- If you are getting a fixed-rate mortgage, you will need to lock in your rate with your lender. Your rate is not locked until you have signed your rate lock form and returned it to your lender.
What do I need to bring to the mortgage closing?
You should bring your ID card, as well as a way to pay for the loan's closing costs that are due. If you are paying for closing costs out of an account here at Citizens, you do not need to bring the payment method. The payment can be pulled directly out of the account at the time of closing.
What should I expect after the mortgage closing?
- If you are doing a cash-out refinance, there is a three day period that the bank is required to wait before paying out the loan proceeds from your mortgage. This period is due to the right of rescission, which gives borrowers a three day period in which they could cancel their mortgage transaction.
- If funds from your mortgage are being used to pay off other loans, credit cards, or lines of credit, check in with those organizations within the next weeks to ensure that the payments have been properly applied.