Step Two - Application

(Application is the formal request for a mortgage approval. When filled in with the borrower's personal information and submitted with income and asset documentation, the lender underwrites and either approves or denies a borrower's request for a mortgage)

- Application - It can occur in person, over-the-phone, or on-line through AmericanSystemBuiltMortgage.com (depending what is most convenient for the borrower(s) and lender). The borrower's personal information is collected and added to the application document. The application and the appropriate mortgage loan disclosures are sent to the borrower(s) to sign and forward back to American System Built Mortgage.

- Good Faith Estimate - Your loan officer sends each borrower an itemized list of estimated costs that the borrower(s) may incur during the mortgage transaction. The estimates are generally higher then the actual costs due to the fact that they are estimated off of information that is not state specific. For example, tax and title insurance information is not given to the lender/loan officer until the borrower's closing agent provides it.

- Underwriting - once your American System Built Mortgage Loan Officer receives the application, disclosures, and income and asset information, an Underwriter reviews your request for a mortgage. American System BuiltMortgage issues a mortgage commitment letter upon approval.

- Mortgage Commitment Letter - Upon approval, American System Built Mortgage issues the commitment letter to officially state, in writing, under what terms the is considered approvable. Usually, the terms of the loan are called loan conditions.

- Closing Conditions - The documentation that needs to be obtained prior to closing a loan. Standard closing conditions include, but are not limited to, the following examples: an acceptable appraisal, title insurance, source of the funds (money) needed to make down payment and closing costs, signed contracts between the borrower(s) and builder, and any applicable insurance policies (homeowners/flood).

***Please note that the borrowers are not obligated to American System Built Mortgage for anything at this point. Borrowers do not have to start repayment of the mortgage until they go to closing. Borrowers may revoke their dealings with the mortgage company at any time before closing.***