Mortgage 101

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Loan Process

The loan process can seem long and exhausting. But here at Tucumcari Federal, we strive to make the process as simple as possible for you. We can sign docs electronically to save you time from the comfort of your couch.

Here is what you can expect during your loan process:

1. Application
   • Once we receive a completed application, your timeline will begin. Generally, the loan process from start to finish will be about 45 days on residential loans.
   • During this pause, you will complete an application and provide us with all supporting documentation such as paystubs and tax returns.
   • We will provide you with your initial disclosures, including a Loan Estimate, and a commitment letter. You can expect to receive a general idea of your loan payment and down payment.
2. Underwriting
   • During this time, our loan processors will begin ordering all of the necessary work such as appraisals, pest inspections, and title work.
   • You will be required to provide Hazard and Flood (if applicable) insurance on the property before we can fund your loan.
   • This process generally takes two to three weeks.
3. Closing
   • Once we have received all of the required documentation, we will begin the closing process. You will receive a Closing Disclosure that will provide your actual closing costs.
   • We will schedule closing with your title company. Here you will sign your paperwork and your loan will be funded! Unfortunately, this part cannot be done electronically, a wet signature is required.
   • If you are refinancing or paying off any existing debt with the funds, the title company will issue the necessary checks to vendors. If you are buying a house, the title company will pay the seller any funds due.

It’s easy to apply for a mortgage - follow our guide to apply!

STEP 1: APPLICATION

Completing the application is the first step.  The information you give on the application is extremely important and must be complete in order for us to make a good lending decision.  Please make sure all information is current and accurate.

1. Download the application or Apply Online Now
2. Fill it out as thoroughly as possible
3. Visit, call or email our Loan Officers. Contact US (Link to your contact information)

STEP 2: GATHER DOCUMENTS

Gather the documents below: (This information is not required to receive a loan estimate. However, in order to be approved the data will be required.) The following items need to be provided with the completed application:

For All Loans

• Complete Application
• Copies of current Driver’s License or photo ID
• Borrower’s Certification and Authorization (Document will be provided)
• Customer Information Sheet (Document will be provided)
• Appraisal
• E-Sign Consent if you wish to be contacted electronically and sign electronically (Document will be provided)
• Copies of 2 most recent Paystubs
• Copies of 2 most recent complete Personal Tax Returns, include all schedules, K-1’s and all referenced worksheets (if self-employed)
• Copies of 2 most recent complete Business Tax Returns, include all schedules, K-1’s and all referenced worksheets (if applicable)
• Retirement, SSI or Other Income supporting Statement of Earnings
• Purchase Agreement (if applicable)
• Account Statements for the last 2 months (if applicable)
• If paying off an existing mortgage loan, we will need name, account number, address, and phone number of the lending institution currently holding your mortgage.

For Construction Loans

• Copies of expected expenses
• Contractor’s agreement (if applicable)
• Permits
• Plans and Drawings

STEP 3: INSURANCE REQUIREMENTS

You will need to obtain a one (1) year Prepaid Homeowners Hazard Insurance policy on the property, whether it is a new loan or a refinance. It will be your responsibility to contact an insurance agent of your choice and obtain the insurance policy, or if there is a current policy in force, a Policy Endorsement adding Tucumcari Federal as the mortgagee. The policy must be in place three (3) days before the loan is funded. The coverage must be more than or equal to the loan amount requested. Temporary financing for a year or less is exempt.

Tucumcari Federal does not arrange for or provide insurance.

Ask your insurance agent to provide you with a copy of the Binder or endorsement and deliver it to us as soon as possible upon approval of your loan request. We are not able to establish a closing date until arrangements are made for insurance. The policy should include the following endorsement:

We will advise you if your property is in a flood zone at the time of Initial Disclosures.

If the property you are purchasing is located within a FLOOD PLAIN, as designated by FEMA, a Flood Insurance Policy with a one (1) year prepaid receipt will be required at closing. The endorsement for this policy should read as stated above.

STEP 4: CLOSING

Once you receive your actual closing costs from your Closing Disclosure, we will need proof of funds for your part of the closing costs. This must be a copy of your bank statements with the balance of the account.

At time of closing, you will need your funds for closing in the form of a Cashier’s Check or a wire transfer. Title companies do not accept personal checks.

Apply Online! Download the application