Loan Procedure Information

First Time Home Buyer Program

Loan Procedures

1. Applicant(s) works with lender of choice to obtain the primary lender’s pre-qualification letter.

2. Applicant(s) applies for program through the Business & Housing office at the Town of Paradise. Applicant            provides Town of Paradise with a copy of:

• • The pre-qualification letter provided by primary lender
  • Completed Town of Paradise Interest Form
  • Town of Paradise First-Time Homebuyer loan application
  • Income documentation: 3 months pay stubs and completed 3^rd party verification forms from all employers
  • Asset documentation: 6 months bank statements (checking and savings); Statements from all cash or market assets (CD’s, IRA’s, Stocks, Whole Life Ins. policies, etc.).
  • Income Tax Statements + W-2’s for the 3 most previous years. Forms must be signed by Applicant(s). A completed 4506-T form(s) must be signed.
  • Homebuyer’s Workshop Certificate of Achievement
  • Any other documentation requested by the Town of Paradise that is necessary for determining eligibility

3. After review of all Items, a Letter of Eligibility or a Letter of Denial is sent to Applicant. For those eligible, the following documents are included for the Applicant’s completion and signature(s).

• • Loan Procedure and Terms Acknowledgment
  • Race and Ethnic Data Reporting Form
  • State of California Fair Lending Notice
  • Lead Base Paint booklet and Receipt for same

4. Once eligibility has been determined, Applicant(s) works with real estate agent to select home.

5. Only after eligibility has been determined, Applicant selects home and enters into a purchase contract, contingent upon receiving Loan Approval from the Town. Agent obtains signatures of both Buyer and Seller on Town of Paradise disclosure statement (Disclosure to Seller with Voluntary, Arm’s Length Purchase Offer) and includes it as part of the purchase agreement.

6. Real estate agent provides Town with a copy of:

• Escrow Information Sheet (submitted to Town within 5 days of escrow opening)
• Fully executed Real estate Purchase Agreement and any subsequent addendums
• Town’s Disclosure Statement (Disclosure to Seller with Voluntary, Arm’s Length Purchase Offer) signed off by both Buyer and Seller.
• Structural pest control report and clearance of Section 1 items
• Lead based paint inspection report and clearance for homes older than 1978