Mortgages - Applying FAQs

A realtor, or Real Estate Agent is trained to assist someone buy or sell their home.

Applying for Pre-approval is not available online so if you are interested in being pre-approved, contact an ESL Mortgage Originator at 585.336.1502 or 800.352.6669 Ext. 1502.  Being pre-approved for financing prior to finding a property can be a very smart thing to do.  Having a Pre-approval letter shows real estate brokers and sellers that you are a qualified buyer and may give more weight to your purchase offer.

Yes, you can borrow funds to use as your down payment!  However, any funds that you borrow must be secured by an asset in your name.  Borrowing money against any asset that you own such as a second home is a perfectly acceptable source of funds.  If you are planning on obtaining a loan, make sure to include the details of this loan in the Liabilities section of the application.

We will accept your mortgage application even if you are not an ESL member when you apply online. However, because membership must be established before you close on an ESL Mortgage, all borrowers on the application will be asked questions regarding membership eligibility through one of our many member groups.

Once eligibility is confirmed, each borrower will be asked to open an ESL Savings Account, prior to closing on your mortgage loan.

All borrowers on the application must be listed as a primary owner of at least one ESL Savings Account.

Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying this mortgage loan.

In the online mortgage application, click on "I'd like to refinance the existing mortgage balance on my home".  Be sure to add the closing cost amount to your current mortgage balance to determine how much you would like to borrow.  At the end of the application there is a comment section.  Please make a note of your intention to finance your closing costs.

In the online mortgage application, click on "I'd like to refinance the existing mortgage balance on my home".  Since you plan on paying for your closing costs out of pocket, you do not need to include the closing cost amount as part of your current mortgage balance.

If you own rental properties, we'll generally ask for the most recent year's federal tax return to verify your rental income.  We'll review the Schedule E of the tax return to verify your rental income, after all expenses except depreciation.  Since depreciation is only a paper loss, it won't be counted against your rental income.

If you haven't owned the rental property for a complete tax year, we'll ask for a copy of any leases you've executed and we'll estimate the expenses of ownership.

Congratulations on your new job!  If you will be working for the same employer, complete the application as such but enter the income you anticipate you'll be receiving at your new location.

If your employment is with a new employer, complete the application as if this were your current employer and indicate that you have been there for one month.  The information about the employment you'll be leaving should be entered as a previous employer.

We will ask for copies of your most recent pension or social security award letter, documentation of receipt of the most recent consecutive two months payments and the past two year's 1099's.

If you're selling your current home to purchase your new home, we'll ask you to provide a copy of the settlement or closing statement you'll receive at the closing to verify that your current mortgage has been paid in full and that you'll have sufficient funds for our closing.  Often the closing of your current home is scheduled for the same day as the closing of your new home.  If that's the case, we'll just ask you to bring your settlement statement with you to your new mortgage closing.

Two years personal tax returns are required to verify the amount of your dividend and/or interest income so that an average of the amounts you receive can be calculated. In addition, we will need to verify your ownership of the assets that generate the income using copies of statements from your financial institution, brokerage statements, stock certificates or Promissory Notes.

Typically, income from dividends and/or interest must be expected to continue for at least three years to be considered for repayment.

Any student loan should be included in the application.  If you are not sure exactly what the monthly payment will be at this time, enter an estimated amount.

Gifts are an acceptable source of down payment, if the gift giver is related to you or your co-borrower.  We'll ask you for the name, address, and phone number of the gift giver, as well as the donor's relationship to you.

If your loan request is for more than 80% of the purchase price, we'll need to verify that you have at least 5% of the property's value in your own assets.

Prior to closing, we'll verify that the gift funds have been transferred to you by obtaining a copy of your bank receipt or deposit slip to verify that you have deposited the gift funds into your account.

Generally, the income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period.  

We'll review and average the net income from self-employment that's reported on your tax returns to determine the income that can be used to qualify.  We won't be able to consider any income that hasn't been reported as such on your tax returns. Typically, we'll need a full two-year history of self-employment to verify that your self-employment income is stable.

Generally, a co-signed debt is considered when determining your qualifications for a mortgage.  If the co-signed debt doesn't affect your ability to obtain a new mortgage we'll leave it at that.  However, if it does make a difference, we can ignore the monthly payment of the co-signed debt if you can provide verification that the other person responsible for the debt has made the required payments, by obtaining copies of their canceled checks (or other proof of payment) for the last twelve months and all payments have been made in a timely fashion.

Completing our on-line application is as easy as 1-2-3!  Use it to apply for a Purchase Mortgage (a signed offer to purchase a specific property is required), a Cash Out Refinance, or a No Cash Out Refinance.

We'll ask you questions about your personal finances and the home. You'll probably know all the answers off the top of your head.

But just in case you may want to have the following information available (for all applicants) before you start your on-line sessions:

• Personal information including dates of birth, social security numbers, current and previous residence address, and employment information (including full address and phone numbers)
• A summary of all debts including outstanding balances, account numbers, and monthly payments
• A summary of assets including current values, institution names and type of accounts

The application is divided into sections and you can track your progress through each section at the top of each screen.  It should take less than 20 minutes to complete the application.

Move through the application by using the back and next arrows at the bottom of each screen.  Don't use the back and next button on your browser while your completing the application.

We use exciting new technology in order to provide you with the most convenient on-line mortgage application ever!  As you answer some of the questions, you'll note that questions below may change, disappear or new questions are added instantly.  We don't ever want to waste your time asking for information that isn't important in your situation, so we evaluate the information we need based on your answers.

If you need additional help answering a question, click on the question mark at the end of the question for more information.

If you don't have time to complete the application right now or if you need to gather information before you finish, we'll save the information you have completed.  When you're ready to finish, return to the site and enter your User ID and password to continue.

Application:

Our online application will ask you to provide information regarding your income, source(s) of income, employment and employer, assets, the property you are interested in purchasing or refinancing, and other personal identifying information. You will be informed that a credit report will be required in connection with your application and asked to approve us pulling your credit report for your application.  Additionally, you will be asked to identify the method of payment (credit card charge or debit of ESL account) for fees you will have to pay before closing.

The process should be quick and easy, but will be made even easier if you have your paystubs, monthly statements and other documents about your income and assets with you when you complete the online application. If you are prepared and know the information being requested, the application can take as little as 20 minutes to complete.

An ESL representative will contact you if we need clarification of the information you have submitted, or you have omitted information critical to successfully submitting the application.

Applying for a product or program ESL does not currently offer, or one that is available only through an ESL Mortgage Loan Originator, your submission will not be successful.  We will send you an email notification if this occurs.  

Once your application is submitted successfully, we can offer the option to request that your interest rate be locked.  

ESL will prepare and mail you your application package.  This package contains important documents and disclosures, some of which will require your signature and signatures of any co-borrowers.  It contains a list of the supporting documentation ESL will need from you to verify information you have provided in your online application.  

Your package will contain important information regarding our need to receive your express intent to continue with the application you have submitted.  

Please pay close attention to these directions.  No further processing of your application will take place until we receive your intent.

• Your delay in providing us with your intent could:
• Impact the ability to close your loan in a timely fashion or within your rate lock period if you have locked your rate,
• Result in your application being withdrawn for incompleteness.

Once you have provided your intent to continue, you will also need to provide any fees that are due prior to closing.  The appraisal will be ordered at this time.

Approval:

Once your loan request is approved, we will issue a mortgage loan commitment letter that outlines the terms and conditions of approval.  You may need to clear certain conditions prior to being able to schedule a closing.  Please read your commitment letter carefully and sign and return all documents requested.

Closing:

We will contact you to coordinate your closing date.

Title insurance may be necessary.  If you are purchasing a home that is new to you, we’ll work with your attorney to insure the title work is ordered as soon as possible.  If you are refinancing, we can order the title work for you – at your request.

Closings for a purchase transaction will be coordinated directly with your attorney.  We will schedule a refinance closing directly with you.  

All closings take place at ESL Corporate Headquarters- 225 Chestnut Street, Rochester, NY 14604. Exceptions to this are made only infrequently and must be requested and approved well in advance of your given closing date.

We look forward to making this process as easy and convenient as possible!

If you'll be withdrawing funds from a 401(k) or retirement account to fund your down payment, we will ask you to provide evidence that you have the funds available by providing a recent statement.  We need to verify what the terms are for withdrawing funds.  Prior to closing, we'll verify that the funds have been transferred to you by obtaining a copy of your bank receipt or deposit slip.

In order for bonus, overtime, or commission income to be considered, you must have a two year history of receiving it and it must be likely to continue.  For overtime and bonus income we'll need to obtain copies of W-2 statements for the previous two years and a recent pay stub to verify this type of income. We'll average the amounts you have received over the past two years to calculate the amount that can be considered as a regular part of your income.  For commission income we will need to obtain copies of  tax returns for the most recent 2-year period to verify the amount of business-related expenses.  We'll average the amounts you have received over the past two years to calculate the amount that can be considered as a regular part of your income.

Typically, income from a second job will be considered if a two-year history of secondary employment can be verified.

Generally, only income that is reported on your tax return can be considered when applying for a mortgage.  Unless, of course, the income is legally tax-free and isn't required to be reported.

Your information will be saved once you click on the Next button, which appears at the bottom of each page.  If you only complete a partial page and plan to return later, be sure to click on the Save & Close button to ensure that the information you entered on that page is not lost.  You can revise your information at any time before you submit your loan.

Having changed employers frequently is typically not a hindrance to obtaining a new mortgage loan.  This is particularly true if you made employment changes without having periods of time in between without employment.  

If you're paid on a commission basis, a recent job change may be an issue since we'll have a difficult time of predicting your earnings without a history with your new employer.

Your best estimate of the value of the additional assets you own will be acceptable, if you do not have exact figures.  

Please remember that, in some instances, we use the estimates you provide to determine if you have sufficient cash to close the transaction and sufficient savings after your closing for underwriting approval purposes.  As part of the application process, we may require you to provide account statements or other documents to show us the exact value of your assets.

If you can't remember your password, please contact ESL at 585.336.1402, for TDD 585.336.1399.

Information About Our Site Security

We use leading-edge technology to ensure that all customer information is 100% safe. We protect our customers by using a combination of security measures that are among the most state of the art in the e-commerce industry.

Encryption

All customer information is encrypted using Secured Socket Layer (SSL) technology supported with digital certificates provided by Starfield Technologies. This means that your loan application information is safe and secure as it travels over the Internet.

Firewall Security

We use leading firewall and network security technology to protect our internal computer systems from unauthorized access. Our customers can be confident that their personal information is completely safe and private after they apply.

 Your credit score is a number that reflects the information in your credit report.  Your credit score can change, depending on how your credit history changes.

There are many credit scoring models, but the one that dominates the U.S. market currently is the FICO credit score.  The majority of financial institutions in the United States use FICO scores in their decision making process.  FICO scores range from the low 300’s to 850.  

A consumer has three FICO scores, one for each credit report provided by the three major credit reporting agencies: Equifax, Experian and Trans Union.

ESL pulls scores from all three agencies in conjunction with your application and use the middle score of the three when evaluating your application.  If there is more than one borrower on your application, the lower of the two middle credit scores is used in the underwriting process.

The availability of all three credit scores and your actual credit score can impact the amount of fees you will be required to pay, your interest rate, or our ability to approve your loan request.

If you're sure you are already an ESL member, type "Yes" in response to the question asking for your member number. We'll locate your member number when we process your loan.

By law, ESL must provide certain online disclosures. Therefore, your agreement to receive certain disclosures online is a pre-requisite to being able to submit your application request electronically.  

ESL will provide online:

• The Servicing Disclosure Statement. 
• The HUD Settlement Cost Booklet.
• The Consumer Handbook on Adjustable-Rate Mortgages if you are applying for an adjustable rate mortgage.

Paper copies of the above disclosures, along with the Good Faith Estimate of Closing Cost disclosure form, the Truth in Lending disclosure form, and the New York State Pre-Application Disclosure will be provided at no additional cost to you in the application package mailed to you after you’ve successfully submitted your application online.

You often do not need top-tier credit to qualify for a mortgage. The minimum credit score required is dependent on the type of mortgage you are looking to obtain. The minimum score for conventional mortgages is 620, and this minimum may be lower for government-backed mortgages.

A pre-approval letter verifies that your financing is in order, as confirmed by the lender. At ESL, a preapproval is valid for 90 days. Your lender will also re-verify the details from your pre-approval (assets, debts, income, credit) prior to closing.

A mortgage pre-approval will count as a “hard inquiry” on your credit report and may have a small short-term impact on your credit score. However, the number of inquires on your credit report is generally considered to be less influential in calculating your overall credit score.

When applying for a mortgage, your Mortgage Originator will confirm your monthly income and expenses (such as student loan payments) to calculate your debt-to-income (DTI) ratio. The specific calculation will vary based on your student loan type and type of mortgage you are applying for.

If you are putting less than 20% down on a purchase, or have less than 20% equity when you refinance, your loan approval will be subject to ESL’s ability to obtain PMI (or mortgage insurance premium for a Federal Housing Administration government loan) for your loan. The PMI premium is based on several factors including the term of your loan, your loan amount, your property value, your credit score, and whether your loan is a fixed rate or adjustable rate loan.

When speaking with your lender, you’ll want to be prepared to discuss your employment history, goals, budget, and credit history. Identifying your current monthly expenses, and funds available for down payment and other costs are all factored in to your mortgage application. Working with a trusted real estate lender, like ESL, can help answer questions for your specific goals and needs, based on your finances and homeownership goals. Find a Mortgage Originator.

There are many factors to consider here. If the property is zoned commercially, this will affect what type of mortgage options are available (ESL can help with these options). Your Mortgage Originator will also work with you to verify income history during the previous two years.

Yes, most lenders will allow for two single people to apply for a mortgage together. It is best to work with your lender and real estate attorney, to determine how applying for the mortgage would affect your homebuying process.

The credit score of each mortgage borrower will be reviewed during the application process. If you are concerned about your credit score, or looking to make improvements, ESL has a number of resources available related to credit.