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For most loans, lenders mainly want to see you have the funds to close in your bank account, but they also are looking for any suspicious large deposits (anything over 50% of your monthly income). For this reason, you want to pre-plan and have any deposits needed for your upcoming closing already in your bank account prior to the 60 days. However, if you will not be able to, contact us so we can help by letting you know what to do).
When delivering the bank statements to us for your loan, you will need to make sure that the bank’s website URL address is at the bottom of the page you printout. This is how they trust the document. If you are asked to pull a “transaction history” because the official statement is not out yet, the website address must be at the bottom of the page.
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If you are self-employed, you will need to send in your last 2 years of tax returns. If you did not file, call us so we can let you know how to proceed, as well as other loan options available to you.
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You will be asked to provide some sort of photo identification, whether it be a drivers license, military ID, or passport…either one of these will work. If you are a woman and recently married, you might be required to submit your marriage license, to prove the link between your new name and your maiden name.
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Depending on the loan program that would meet your specific needs, will determine what additional paperwork will be requested. At the pre-approval stage, we will know what is needed after speaking with you.
FAQs
How long does it take to close on the loan?
It depends on the type of loan you are getting…the standard FHA, Conventional, VA, and USDA loans take between 20-30 days to close from the date you sign the purchase contract. Other loans can take as little as 10-15 days…these are mostly for investors.
Can I buy a new construction home?
Yes. The builder has there own in-house mortgage company but they will always give you a higher rate to build in the “credit” toward closing costs they offer you. This credit always come with a higher price in the effect of a much higher interest rate and therefore, a higher monthly payment. Check with us for a lower interest rate and still will be able to provide credits toward your closing costs.
What is the minimum credit score for a loan?
If your credit is not good, you might be able to get into the FHA loan program since they require a 580 minimum for 3.5% down payment and 10% down if your credit score is between 500-579. If you need credit repair, we can direct you to the consultants we recommend.
How much are my closing costs?
It depends on the title company being used. They have their own fees and along with the county/state fees. Once your loan has been final approved and moves out of underwriting, we will be able to itemize all of the fees. Until that time we let you know the rule of thumb estimation which is between 2% - 2.5% of your loan amount.
Can I have someone co-sign for me?
Yes. As long as they qualify, we can add them to your loan to help you increase your purchasing power.
Should i get pre-approved before finding a home?
Always yes. For several reasons, but mainly because you want to be sure there are no surprises when you get into underwriting. Also, sellers can fight to keep your escrow deposit once you’re under contract should your loan fail. Therefore, knowing the exact maximum price you will qualify for is important. Also there may be something you need to start of stop doing before going into underwriting and only a pre-approval will be able to make that determination, so it is always smart to get pre-approved prior to home shopping.