Financial Service Representatives

Kelly Donovan	215.983.9444	Email
Susan Donovan	610.937.9955	Email
Jim Kernan	267.312.7229	Email
Monica Palatano	610.637.1155	Email
Christina Zulueta	215.605.2759	Email

Dear Future Homeowner

Congratulations on choosing Coldwell Banker Preferred, recent recipient of the real estate industry's top honor - The Cendant Mobility Broker Network Cup. This award reflects the hard work and dedication of the great colleagues of Coldwell Banker Preferred. This honor is a testament to the passion for excellence that exists in the agents, managers, relocation staff, mortgage, and title partners. It is the culmination of enduring quality service.

The first and most important step before you begin searching for your dream home is to understand how much you will be able to finance, and finding a level of comfort within the range you desire. PHH Preferred Mortgage is here to provide the knowledge and the guidance that will enable you to make those decisions and realize your dream. Our goal is to provide meaningful and relevant solutions to our customers. We simplify our customers' lives by delivering a comprehensive range of financial solutions.

Our mission is to make the entire process as efficient and stress-free as possible. In order to accomplish this, we utilize a simple four-step program that promises ease and simplicity to guarantee a great home loan experience. On this site, you will find:

1. A simple and concise explanation of the mortgage underwriting process, and how your loan approval is determined.
2. A checklist of the documents usually required for mortgage application and approval.
3. A list of some of the most common mistakes that you can avoid to make the approval process even easier for you.
4. A pre-approval form you can submit from this website.

Please review our information and call one of our Financial Service Representatives Financial Service Representatives with any questions.

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Understanding How Your Loan Approval is Determined

The loan approval process is a review of a combination of several factors to determine the risk involved with lending money to the borrower(s).

These factors include but are not limited to: credit score, income, assets, employment history, and funds available for down payment and closing costs. This is accomplished by utilizing an automated underwriting system that analyzes these factors, or may be manually reviewed by an underwriter. The borrowers' eligibility is determined after these factors are reviewed, and the borrower is assigned a risk level.

This risk level will determine the options that are available to you, and you will then work closely with your PHH Preferred Mortgage FSR to determine which one of the many available products best fulfils the needs of you and your family.

Please review the detailed list of required documentation under the Documentation You Will Need section. You will find a checklist of the documents most commonly requested by PHH Preferred Mortgage. It is a good idea to have these documents available when you apply for your loan so your application is as accurate as possible.

Please remember - your approval is only as accurate as the application you provide!

In addition, you will need to provide the social security numbers and dates of birth for all borrowers on the application. Prepare a two-year employment and housing history along with all dates, addresses, and zip codes. It is very helpful to have employer/human resource contact numbers for the most recent two-year period. Also, the names and phone numbers of your landlords/management companies will need to be provided for rental verification.

Be sure to retain all of your financial records, including your pay stubs, and all of the pages of your asset statements. Begin gathering these documents, and keep them in a safe place so they are available to you when you need them.

If you have any questions, please call one of our Financial Service Representatives

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Documentation You Will Need

1. If you are in a salaried or hourly position, you should provide the most recent month of pay stubs showing your year-to-date earnings, along with your W-2 for the previous tax year. (If you are self-employed, be prepared to provide the most recent two years of tax returns. Don't forget to sign them!) If you receive bonus income, you will generally need to show an average of two years. Consult with your mortgage professional regarding this and other income sources.
2. You will need the two most recent months of your asset statements to show the source of funds for your down payment and closing costs. These may include checking, savings, certificates of deposit, stocks, bonds, 401K, IRA, etc. Most mortgage programs require that after the transaction is complete, you still have two months of housing payments in reserve, also referred to as PITI (principal, interest, taxes and insurance.) The purpose of using two months statements is to show that your funds are indeed your own, "seasoned" and not borrowed. Any large non-payroll deposits will require an explanation for the source of the funds. Please refer to Common Mistakes To Avoid. Do not overlook your retirement plans as sources of funds for purchasing a home. Check with your plan administrator or your financial adviser.
3. You will need to provide a Human Resources or personnel contact for your employer, as your employment will be verified by the lender prior to settlement.
4. You will need the agreement of sale for the home you are purchasing. It must be fully executed and signed by all parties before submission to the lender. If an addendum is added later, it is important that you notify your mortgage representative immediately. Your real estate agent will supply a copy for you, as well as one for the lender. Always get and retain a copy of any checks you write towards earnest money deposits.
5. Discuss the possibility of a "seller assist" with your real estate agent and your PHH Preferred Mortgage Professional, particularly if a shortage of funds can prevent an otherwise mutually advantageous sale from becoming reality.
6. If you are intending to receive a gift of funds, always discuss this with your PHH Preferred Mortgage Representative first, and prior to depositing any funds. Some mortgage programs have very specific requirements regarding gift funds, and there is also a specific procedure for documenting the receipt and transfer of these funds.

If you have any questions, please call one of our Financial Service Representatives.

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Common Mistakes To Avoid

1. Always retain all of the pages of your financial statements, even if they are provided for you online by the financial institution.

   Online statements will not be valid unless they contain the following:
   • Customer/Account Holder name and address
   • Name of the financial institution
   • Statement Date
   • A full or truncated number matching the one provided by the customer
2. Do not deposit gift funds or other large amounts without first discussing the proper procedures with your PHH Preferred Mortgage FSR
3. Always retain a copy of any check provided for deposits of earnest money, and check with your mortgage representative as to whether or not you will need to provide bank verification that any certified checks came from your own funds.
4. Make your mortgage representative aware of any 401K or other loans, which may not appear on your credit report.
5. Do not make purchases that promise "no interest, no payments until . . ." If no payment appears on the credit report, and it cannot be verified, the lender will use 5% of the total as a monthly payment for approval purposes. This amounts to $600.00 per month on a furniture purchase of $12,000!
6. Avoid excessive credit inquiries, as your score can be adversely affected.
7. Do not begin closing and/or paying off revolving credit card accounts, whether you use them or not. Closing accounts with zero balances can adversely affect your credit score by decreasing the overall percentage of available credit. Paying down existing balances could use up cash that may be necessary for settlement costs. The lender will use only the minimum payment due for approval purposes, usually 2% of the balance, therefore paying $2,000 against a credit card balance may only lower your monthly liability by $40 per month.
8. Do not begin moving your money from one account to another. The "paper trail" required to trace the source of funds can become difficult when one statement shows the funds as withdrawn, but there is not yet another statement showing the funds as deposited.
9. If you have any questions, please call one of our Financial Service Representatives.

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