The Steps to Buying a House Can Be Confusing. We Clear it Up
We know there is lots of complicated forms to fill out and information to be collected when you’re applying for a mortgage and buying a house. Your mortgage adviser does one short call to collect the right information and we take care of the rest.
All you have to do is electronically sign the paperwork and your application gets processed fast. Your dedicated team of professionals will take care of the details of your application, including documentation, home appraisals, underwriting, and answering all your questions at the right time.
What Types of Mortgage Loans are Available?
Have You Already Made an Offer?
Once you find the right home, you’ll need to act quickly. And while it doesn’t guarantee your mortgage application will be accepted, getting pre-approved is smart for these reasons:
1. You can make a quick and confident offer on the home.
2. Get into a home you can afford, knowing what the limits are on how much you can borrow and what your monthly mortgage payment will be.
3. You can protect yourself from rising interest rates by being in a position to lock-in your rate as soon as your contract is accepted.
4. Re-affirm your budget knowing that the term, amortization, and mortgage payments are guaranteed at the time of approval.
Here’s are the items you want handy before you apply
1. Photo ID
2. Proof of income such as last (2) years W2’s and recent pay stubs. (2) years tax returns if self-employed
3. An offer letter from your employer if starting a new job stating your start date and proposed salary
4. Proof of assets for down payment such as bank statements, 401K or other investment accounts
Read: Mortgage Application
Are You A First Time Home Buyer?
Before you consider searching for a home, one of the first steps you should do is get pre-approved. Why? Let’s look at it for a second. As a first time home buyer, you’re more likely to have a lower down payment and will need to borrow most of the price of the home. That is why getting a pre-approved is a smart decision before you start your home search.
Read: First Time Home Buyer
Are You a Vacation Home Buyer?
You can figure out quickly how much to borrow for your vacation home with the help of experienced mortgage advisor by doing a few calculations over the phone.
Read: Buying A Second Home
Are You Looking for A Conventional Loan?
A conventional loan is any mortgage that is not guaranteed or insured by the federal government. Conventional loans usually follow the guidelines set out by Fannie Mae and Freddie Mac. Conventional loans that are non-conforming do not fit the conforming guidelines set out by government sponsored enterprises like Fannie Mae and Freddie Mac.
Read: Conventional Mortgage
Are You Looking for a Government Loan ?
A government-backed loan is a loan subsidized by the government, which protects lenders against defaults on payments, thus making it a lot easier for lenders to offer potential borrowers lower interest rates. Its primary aim is to make home ownership affordable to lower income households and first-time buyers.
There are numerous types of government-backed loans, which vary dependent on the country and status of the borrower. Arguably, the most widely known type of government-backed loan is the US Federal Housing Administration FHA loan, in existence since 1934.” – Wikipedia
The government loan programs are made up of three major loan products:
VA Loans – These loans are designed for active duty military member’s and veterans who have given service to their country and meet the eligibility requirements.
FHA Loans – This flexible loan program has a low down payment, interest rates and easier qualifying requirements for borrowers
USDA loans – These loans are designed for rural residences and must meet specific income requirements that are based on a median income level in the area you are purchasing a home in.
Read: Government Home Loans
Are You Looking for Jumbo Loan?
Jumbo Loans sit outside of the conforming conventional loans you see with Freddie Mac and Fannie Mae loans that are non-conforming are called Jumbo loans and do not fit the conforming guidelines set out by government sponsored enterprises like Fannie Mae and Freddie Mac.
This not necessarily a bad thing it just means that the loans have more flexible limits and conditions than the conforming loans. A Jumbo Loan is any loan over $417,000 in most US counties.
Read: Jumbo Loan