The Loan Process

Prequalification is the term used to explain the short mathematical equation that determines how much of a loan you can afford. This may be performed by going to the Loan Advisor or by contacting one of our 300+ Loan Originators on staff at (888) 250-6522. Prequalifying for a loan usually takes less than 5 minutes.

Applying for a home loan with USA Mortgage could not be easier. You may call to set up a convenient time to meet face-to-face with one of our professionally trained Loan Officers or, if you prefer, have your loan application taken over the phone, which usually is completed in less than 15 minutes.

If you prefer to apply online, you can start our quick, easy and secure online application here. You can also print the very application Loan Officers use for your private completion. If you wish to fax your completed application, please send it to (314) 628-2035.

Processing a loan may be better described as verifying information. One of our courteous Processors will contact you shortly to discuss the facts presented on your loan application. Typically, the Processor will ask for 3 items to verify these facts:

  1. Your last 2 pay check stubs (a year-to-date P & L if self employed)

  2. Your last 2 W-2 forms (personal and/or corporate returns will only be requested if needed)

  3. The last 2 statements you received in the mail from any institution with which you have money on deposit (checking, savings, investment, 401k, etc...)

While this information is being collected, your Processor will order your credit report and the appraisal on the property being financed. If you are purchasing this new home, please submit a copy of your purchase contract, too.

The appraiser will contact you (your Real Estate Agent if you are purchasing a new home) to set a mutually agreed upon time to spend 15 minutes exploring the inside of the property being financed. Then the appraiser will spend hours researching "comparables", like-homes in size and lot that have sold as geographically close in proximity as possible to the subject property and within the last 6 month period of time.

Simply put, an Underwriter is the brain trust of a lender. They determine if a loan is approved or rejected and under what terms. If your loan is not approvable under the terms for which you have applied, then a counter offer is usually made if possible. For example, if you applied for a 15 year fixed rate mortgage, but the Underwriter felt the larger payment would be overly taxing based on your other debts and as a function of your income, then they may offer a 30-year fixed rate mortgage instead.

USA Mortgage is different than almost every other lender in that our Underwriters are in-house and on campus in our Headquarter facilities in St. Louis, Missouri. As a result, your file does not leave our office unless there are special circumstances. The result is a faster approval as a result of human interaction.

The name speaks for itself. Usually your closing will take place at the title company of your choice or at our offices if you prefer.  A Closer will call you usually 24 hours prior to your closing to make sure everything has been properly coordinated between you, your Home Owners Insurance Agent, your Real Estate Agent (if applicable) and your title company.

DAS Acquisition Company partners with other major financial institutions for payment administration, also referred to as loan servicing.  What this means for you is that shortly after your loan is finalized, a new institution will begin collecting your payments, handling your escrow accounts, and answering your questions.  We understand the transfer of servicing may cause confusion on where to send your mortgage payments.  Don’t worry!  We have you covered.  Click here for more information.

Mortgage Shopping Quick Tips

Before shopping for a mortgage, there are several factors that you should take into consideration.When you first begin shopping, the process seems relatively simple, just compare rates and pick the lowest one. But, after several calls to lenders that may not ask all the qualifying questions, you begin to realize that comparing lenders may become a difficult task. In addition, you may be speaking to loan officers that are not thoroughly trained, and therefore provide wrong information. So where can you go to shop for the right mortgage? Do not worry! Shopping for a loan can be made simple. Read the article below, use the loan comparison sheet provided, and soon you will see how easy it is to get the best deal.

Before applying for a mortgage, you should decide which program you would like. We have simplified the process by offering the top 5 programs. Look through our Personalized Loan Advisor section for assistance in the selection of your mortgage. A mortgage is a major purchase, it is important to know that you have the right program for you.

Comparing what different mortgage brokers and lenders are charging you to get an interest rate is often the most difficult part of mortgage shopping. First make sure that you are comparing the interest rates on the same day. Rates change when the bond market changes, which occurs daily, if not a couple of times a day.

One of the difficulties in shopping for a mortgage is that lenders seem to have their own way of expressing costs. Compare total costs to get the loan. Get to the bottom line, and look at the GRAND TOTAL SUM of ALL costs before you compare the interest rates. We believe that you will find has the lowest cost mortgages anywhere.

For Example: For a loan amount of 100,000 on a 30 year fixed rate mortgage, ABC bank is offering you a rate of 8.375% with 0 points and 1% origination fee and $450 in lender fees. XYZ Bank offers you 8.5% on the same loan with 0 points and no origination fee, and $450 in lender fees. Both lenders are quoting a zero point loan. Which lender has the better deal? Lender XYZ probably has the better deal because paying origination fees is like paying "points". You should most likely get a .25% improvement in the rate for a "point". On the same day ask lender XYZ what it would cost to have 8.375% and then compare the total cost for both lenders to at that exact rate and lock period on our loan comparison sheet below. It is best to fix all lenders at one rate and lock period to compare the total costs to attain this rate and lock period on this particular day.

Fees can be broken into one or four categories:

  1. Appraisal/ Credit Report Fees or Application Fee - These are fees paid to companies other than your lender for services necessary to obtain your loan. In addition, some lenders may have "application fees". If this is the case make sure this fee is either credited to you at closing or is used for your credit and appraisal report.

  2. Loan Origination and Points - An origination fee or point is 1% of your loan amount. By converting these fees to actual dollars, you can get a truer cost comparison. Some lenders quote zero point loans but charge an origination or broker point. USA-Mortgage does not charge any origination points and YOU always choose whether you pay any other points.

  3. Lender Charges - (i.e. underwriting, processing, document preparation, tax service, flood, etc.) These fees can vary significantly depending on your lender.

  4. Title Fees - These fees are paid directly to a title company. These fees include; title insurance, recording fees, closing fee, survey, termite, and attorney fees if applicable.

Lastly, watch out for lenders playing the short lock-in game, where they are quoting you rates on a 15 day lock. If the lock expires prior to you closing on your mortgage, you lose your lock. At USA-Mortgage, we quote all of our rates on 30, 45, and 60 day locks, to allow you plenty of time to get your mortgage closed.

All USA Mortgage rate quotes are based on 30 day locks by default, but we do offer 15, 45, 60, and even 90 day locks as well. Please ask your loan officer for details. All USA Mortgage programs require you have the ability to document your income.