Frequently Asked
Questions

Factors that affect your financing:

• Debt-to-income (DTI)* ratio

• Assets

• Debt

• Credit

• Affordability

*Debt-to-income ratio is monthly income debt/expenses divided by gross monthly income.

Your credit score is a numerical representation of your statistical likelihood to repay the credit that is extended to you. A credit score is a snapshot of a specific moment in time but can and will change with new actions and the passage of time.

Expect the lowest possible interest rates and best terms in the below range

Excellent: 800-850

Very Good: 750-799

You will be eligible for most loans with good rates in the below range

Good: 700-749

Fair: 650-699

Only secured loans are given for people in the below range

Poor: 600-649

Very Poor: 300-599

*Fairway is not a registered or licensed credit management service provider

Step 1: Initial Consultation

This consultation covers:

• How long you plan on living in the home
• How much down payment you will need
• How much you want your monthly payments to be

Step 2: Pre-Approval

A pre-approval* is based on a preliminary review of credit information provided to the lender and signifies that you’ve done an application and provided the necessary documentation. This lets sellers know you’re serious about purchasing a home.

*Pre-approval is based on a preliminary review of credit information provided to Fairway independent Mortgage Corporation which has not been reviewed by Underwriting.

Final loan approval is subject to a full Underwriting review of support documentation including, but not limited to, applicants’ creditworthiness, assets, and income information, and a satisfactory appraisal.

Step 3: Processing

After you have completed a loan application, your loan file is submitted to the loan processor.

• The processor reviews your file and orders your property appraisal.
• Depending on your situation, the processor may need additional documentation during this step.
• Once your loan file is completed, the processor submits it to underwriting for approval.

Step 4: Underwriting

The underwriter reviews your loan file to ensure all guidelines are met for the specific loan program and issues a loan decision.

Once your mortgage has been approved and all conditions have been cleared, your loan is moved to “Clear to Close” status.

Step 5: Pre-Closing

You will receive a loan commitment letter that contains details of your loan, including:

• Rate
• Amount
• Term
• Outstanding conditions that need to be addressed before the file is sent to closing

Once everything is cleared by the underwriter, our closing department will complete your final documents.

Step 6: Closing

During closing, you will sign a variety of final documents.

Be sure to bring:

• Photo ID
• Proper form of payment to cover down payment, closing costs, prepaid interest, taxes, insurance or any additional costs – don’t worry, we help you know what is a proper form of payment.

From there ta-da – CONGRATS! You are now a homeowner!

• Don’t close or open any asset accounts or transfer funds between accounts without talking with your Loan Officer about the proper documentation required for your loan.
• Don’t deposit any monies outside of your automated payroll deposits, particularly cash or sale of personal property, without notifying your Loan Officer.
• Don’t change jobs/employer without inquiring about the impact this change might have on your loan.
• Don’t make major purchases prior to or during your contract, such as a new car, furniture, appliances, etc.
• Don’t open or increase any liabilities, including credit cards, student loans or other lines of credit during the loan process.

• Keep originals or be able to access on your employer/bank websites all pay stubs, bank statements and other important financial documents.
• Provide your Earnest Money Deposit from your own personal bank account or acceptable gift funds.
• Notify your Loan Officer if you plan to receive gift funds for closing. Gift funds are acceptable only if certain criteria are met.
• Notify your Loan Officer of any employment changes, such as a recent raise, promotion, transfer or change of pay status (for example, from salary to commission).
• Be aware that a new credit report could be pulled just prior to closing.