Documents you will need to bring to your initial appointment:
- Driver’s license and social security card
- Copies of pay stubs for each applicant, reflecting a minimum of 30 days of income
- Names/addresses of employers for the last two years
- W-2s for the last two years
- Copy of most recent tax return
- Bank statements for the last three months
- Proof of pension income, if applicable
- Social Security and Disability payments, if applicable
- Dividend earnings or bonus, if applicable
- Child support or alimony payments (optional for you to disclose)
- A copy of earnest money deposit
- Information on debts such as car loans, student loans and credit cards
- Security accounts (stocks, bonds, life insurance)
- If self-employed: your year-to-date profit and loss statement, plus two years of bank statements and tax returns.
Yes! We provide access to several loan programs that do not require a down payment but you may be required to meet certain credit, employment, or other factors. Some zero-down payment loans may require the home to meet certain requirements as well. Contact one of our mortgage consultants to see if this is an option for you.
Mortgage insurance is a way for the lender to protect against a financial loss in the event the borrower is unable to keep making payments. Mortgage insurance is typically required when the loan is approved with little or no down payment, when the loan is for 80% or more of the purchase price, or if the borrower has poor credit.
Aside from putting down 20% or more as a down payment, mortgage insurance can be avoided with a loan program such as an 80/20, where the borrower takes out a 1st mortgage (80% LTV) and 2nd mortgage (20% LTV) for the property. No down payment is required with an 80/20.
Another option is the Lender Paid Mortgage Insurance (LPMI). With this option, the lender pays the mortgage insurance, but offsets this cost by charging a higher interest rate.
Even with a bankruptcy in your past, you can still qualify for a mortgage loan. Qualifying may depend on the type of bankruptcy you filed (Chapter 7 or Chapter 13) and how long ago it was. Our mortgage representatives are well trained in all aspects of home lending and can review your situation to see if you qualify for a home loan .
Government loans have become more attractive to borrowers because they are typically easier to qualify for, have lower interest rates, and affordable monthly payments. Many of these loans require little or no down payment, opening the door for a home loan to a larger pool of individuals. Many of these loans also have no early pay-off fees and limited out-of-pocket expenses for fees and closing costs.
ARM, or Adjusted Rate Mortgages, have varying interest rants that can change on a monthly basis – it all depends on current market conditions how the rates may change. The rates are determined by adding a margin to an index on a specific date.
Other loans (conventional or government backed loans) are paid incrementally over the life (term) of the loan so that by the end of that time, the total cost (interest and principal) has been paid off. Whereas a balloon loan’s principal is paid in one sum at the end of the term, which is usually 5 or 7 years. That sum is called the balloon payment. Borrowers can refinance at the end of the term or pay the balloon payment.
Your monthly mortgage payment includes a payment to the principal balance, interest, and escrow (property taxes and insurance).
Pre-qualification is a lender’s judgment of your ability to make payments on your mortgage, based on your verbal statement of income, assets, and employment history. Pre-approval is the underwriting decision that you are conditionally qualified for a specific loan amount, and are subject to the lender’s review of your completed application, verification of your income, assets, employment history, credit check, the home appraisal, and other determining factors.
No, applying online is free.
Once I’ve submitted my application online, how long will it take before I know if I’ve been pre-qualified?
One of our mortgage consultants will call you within 24 hours (during standard business days) of submitting your application. The pre-qualification process is fairly quick but it does not guarantee that you will be approved for a mortgage loan.
The interest rate is the rate you agree to pay on your mortgage loan and determines the interest portion of your monthly payment. The annual percentage rate (APR) includes your interest rate and prepaid finance charges to give you an average yearly rate.
A discount point is a percentage of the loan amount that is paid to the lender in order lower an interest rate.
An escrow account is set up to collect your payments for property taxes and homeowner’s insurance in equal amounts over a 12-month period. The account is then used to disperse the payments for property taxes or your homeowner’s insurance premium when those bills are due.
A rate lock is a contractual agreement between the lender and buyer with four components: loan program, interest rate, points, and the length of the lock.
Points are an upfront cash payment required by the lender as part of the charge for the loan. Points are expressed as a percent of the loan, so ‘2 points’ means a charge equal to 2% of the loan balance.