Obtaining a loan in today's lending market can be
challenging. That is why it is ever so important to work with
a loan
officer who has experience, is knowledgeable about lending
guidelines, and is motivated to look "outside the box" and come up
with the best solution for you! It is imperative in today's
market that you are pre-qualified by a lender prior to looking at
homes.
There are three main loan products in today's market that
buyer's are utilizing:
Veteran's Administration (VA) Loans: Only individuals who
have served in the military under specific situations and time
frames are eligible for this loan product. The VA loan is
typically looked upon as the "best" loan product available in our
marker for two reasons:
- 100% financing, does not require a down payment
- No mortgage insurance
- Must be a primary residence
Fair Housing Administration (FHA) Loans: This is the next
best option for someone who has limited funds for a down payment or
who's credit may not be perfect. The FHA loan offers the
following:
- Low Down Payment, 3.5% of the purchase price
- Credit Flexibility
- Fixed Interest Rates
- Do Not have to be a First Time Home Buyer
- Must be a primary residence
Conventional Loans: These loans are for people who are
putting a large down payment down on the purchase of a home. The following are
some of the characteristics of a conventional loan:
- 10% minimum down payment
- No mortgage insurance if 20% down payment is put down
- Aggressive rates
- Can be primary, secondary, or investment property
So what's the process for getting pre-qualified? It is
relatively easy and requires some paperwork and some time.
Your lendercan
typically pre-qualify you in as little as a 10 minute phone
conversation. During this time he/she will ask you about your
income, debt, assets and will pull your credit report.
Shortly after this phone conversation, he/she will need you to
submit paperwork verifying the information you gave in the phone
consultation. Some of the documents he/she may need include:
- Two years tax returns
- 30 days bank statements
- 30 days pay stubs
- 401k/IRA/other investment vehicle statements
Please contact
ustoday with questions regarding financing or to obtain your
pre-qualification!