Loan Application/Financing Your Purchase
Unless you are in a position to pay all cash for your home, you will need to obtain a home loan (mortgage) to complete the purchase. We can assist you in this process by helping ensure that you obtain financing that meets your needs. Here are some things to consider:
Being pre-approved for a loan before you submit an offer will put you in a stronger negotiating position and can save time in the loan approval process.
We can introduce you to experienced loan officers at leading mortgage companies or you can consult one of your choice. Your loan officer will help be your principal guide through the financing process.
There are various financing options which may be available to you, including:
- Fixed Rate Mortgage-the rate of interest charged for credit does not change over the life of the loan
- Adjustable Rate Mortgage-a mortgage where the interest rate is subject to change over the term of the loan as determined by market influences, such as the interest rates on treasury securities.
- Government-Assisted (e.g. FHA or VA) Financing- there are several government-assisted mortgage programs. The qualification parameters for these programs vary, but they generally have specific criteria.
- Seller-Assisted Financing-the seller of the home helps with the financing by underwriting all or part of the loan.
No matter what type of financing you obtain, most lenders will ask for standard information regarding your income, expenses and obligations. The following information is typical when applying for a mortgage:
Purchase Contract and Property Information
- a copy of the sales contract
- the mailing address and property description
- contact information for access to the property
- plans and specifications if new construction
- social security number
- years of schooling
- marital status
- number and ages of dependents
- current address and phone number
- address for past 7 years
- current housing expenses such as rent, mortgage, taxes, etc.
- name and address of landlords or mortgage holders for past 2 years
Employment History and Income
- 2 years of job history with complete details
- recent pay stubs and 2 years of W-2 forms
- complete tax returns and financial statements if self-employed
- written explanation of employment gaps
- proof of other income
- complete information of all bank and money market accounts
- two months of bank statements
- current values of stocks, bonds, mutual funds or other investments
- vested interest in retirement funds
- value of life insurance
- information on any vehicle you own
- information on any real estate you own
- value of significant personal property you own
Liabilities and Debt
- itemized list of current debts (loans, credit cards and other bills)
- written explanation of past credit problems
- full details of bankruptcy
- credit report and appraisal fees (usually $500 or less)