Lake Area Bank

STEP 1: MORTGAGE APPLICATION
You must meet face-to-face with a Lake Area Mortgage loan officer to:
(1) complete and sign a residential loan application; (2) sign verifications of employment, deposits, credit letters and other exhibits necessary to verify information in the residential loan application; (3) receive certain disclosures and information regarding the loan transaction; and, (4) pay any appraisal, credit report, commitment or other fees.

STEP 2: INTEREST RATE AND POINTS COMMITMENT
At the application, the loan officer will explain the loan programs, and interest rate and discount commitments available to you. You may select a loan program at this time and determine whether you wish to avail yourself of any interest rate and discount commitments made available to you by Lake Area Mortgage.
   If you elect to float (and be subject to any market changes), or if your original interest rate and points commitment should expire, Lake Area Mortgage will not advise you of changes in the interest rate and points it offers to the public from time to time. Rather, it is sole responsibility to call Lake Area Mortgage in order to monitor changes in interest rates and discount points. If you elect to lock-in, there are no circumstances under which you will be permitted to close at a lower rate of Interest or points than expressed in the Loan Agreement. Further, your election to lock-in applies only to the specific program selected by you. If you subsequently apply for any alternative loan program, the interest rate and discount point commitment may not apply to the new program.
   The decision of whether to lock-in or float is solely your responsibility. Lake Area Mortgage MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER AS TO WHETHER IT IS ADVISABLE FOR YOU TO LOCK-IN OR TO FLOAT. Lake Area Mortgage employees have no authority to provide such advice, and you are not entitled to rely on any such advice that a Lake Area Mortgage employee may give to you.
   All agreements entered into regarding interest rate and point commitments must be in writing. Lake Area Mortgage may not induce you into accepting an oral agreement, nor are you permitted to accept an oral agreement. A written interest rate and point agreement is a contract enforceable both by Lake Area Mortgage and by you. The only exception to this is if such an agreement is made within 10 days of closing.
   Not all locked-In loans close prior to the Interest rate and discount point commitment period. A "third party delay" may result which is not Lake Area Mortgage's responsibility, but is the result of actions, or inactions, of an independent third party over which Lake Area Mortgage has no control. Such delay often occurs in times of high loan volume which strains the capacity of "third Party" companies. In the case of new construction loan, Lake Area Mortgage cannot control the progress of the actual construction and therefore cannot be responsible if the closing is delayed. While Lake Area Mortgage cannot be responsible for such "third party" delays, Lake Area Mortgage shall attempt to monitor the timeliness of these third parties in an effort to process your loan within the lock-in period.

STEP 3: PROCESSING
Once the application has been taken, Lake Area Mortgage will mail out the verifications of deposit, verifications employment, deposit, credit letters, etc., to the appropriate parties in order to verify each item of information disclosed to Lake Area Mortgage at application. Lake Area Mortgage will order a credit report, appraisal, title policy, and private mortgage insurance policy, if applicable. Once these documents are returned, Lake Area Mortgage will compare the verified information to the information disclosed by the applicant on the application. If the information differs, you may be asked to explain or reconcile any difference in a manner satisfactory to Lake Area Mortgage, provide other documentation regarding the information In the loan package, or take other recommended action that circumstances warrant.

STEP 4: ASSEMBLE AND PACKAGE THE LOAN DOCUMENTS
Lake Area Mortgage will organize, assemble, and package the various
documents to allow it to be readily analyzed by the loan underwriter. Depending upon the loan program, you may be required to return to Lake Area Mortgage to sign certain documents which summarize your financial circumstances. Once assembled, Lake Area Mortgage will submit the loan package for underwriting.

STEP 5: ANALYSIS OF THE PROPERTY AND LOAN APPLICANT CREDITWORTHINESS
The underwriter will examine the creditworthiness of the loan applicant, specifically focusing on the applicant's credit history, ability to save, 'employment stability, adequacy of income, debt load, and the liquidity and source of the assets which are to be used In the transaction.
Next, the underwriter will examine and analyze the written appraisal of the subject property in order to insure that the property meets, and will maintain, the stated value, meets FHA, VA, or Conventional loan program requirements, and satisfies the Company's standards regarding property condition.

STEP 6: DRAFT THE FINAL DETERMINATION

Based on the loan analysis, the underwriter will approve, reject, or suspend the loan application. Lake Area Mortgage will communicate the final determination to the applicant. If rejected, a Notice of Adverse Action will be given stating the reasons for denial. If suspended, the applicant will be requested to provide additional information needed for the underwriter to make a final determination. Even if approved, the underwriter may impose conditions which must be satisfied by the applicant before final settlement can occur.
In addition to Lake Area Mortgage's approval, you may be required to obtain private mortgage insurance. This must be obtained prior to closing.

STEP 7: PRE-CLOSING ARRANGEMENTS

It is the loan applicant's responsibility:
1.To satisfy all conditions imposed by the Company's underwriter;
2.To satisfy all title requirements imposed by the Title Insurance Company as a condition of issuing a title insurance policy insuring marketable title;
3. On torrens property, to deliver an Owner's Duplicate Certificate to the closing if the transaction is a refinance transaction;
4.To secure and bring to closing a Hazard Insurance Binder, together with a paid receipt evidencing one year prepaid insurance;
5. For refinance transactions, to secure correct and current payoff figures for any contract for deed or mortgage to be paid off, and it is further your responsibility to arrange to have a deed, satisfaction of mortgage, or other necessary title documents available at closing;
6.To notify the company, prior to closing, if the applicant experiences job loss or other negative financial changes that materially affect the information upon which Lake Area Mortgage relied in approving the loan;
7.To allow the company a reasonable amount of time between the time of approval and the proposed date of closing to prepare all of the necessary and related documents to effect settlement; and
8.To Contact the Title Company's settlement agent to reserve an appropriate closing date, provided all of the pre-closing requirements outlined herein can be satisfied on or prior to the date of closing and that the proposed closing date is accepted by Lake Area Mortgage and seller; and,
9.To call Lake Area Mortgage at least 48 hours prior to closing at 651-209-2900 with the Hazard Insurance annual premium amount, renewal date of the policy, an the amount of coverage.

Lake Area Mortgage will prepare the closing documents except for the transfer deeds, satisfaction, etc., required by the Title Insurance Policy.

STEP 8: CLOSING

Lake Area Mortgage is responsible to see that the closing occurs establishing an appropriate 1st mortgage lien. The settlement agent is responsible for conducting the closing in an orderly manner, insuring that the mortgage, note, and other related documents are duly executed. It is the applicant's responsibility to insure that the transaction is closed in accordance with the terms and conditions of the purchase agreement, reviewing all closing documents, and for signing all documents necessary and incidental to effect settlement.
It is the applicant's obligation to cooperate and re-sign any documents if it is discovered that the document was improperly drafted due to a clerical error at the closing.