Loan Options for Buying a Home
The Mortgage Application Process
Application
Submitting Paperwork
Pre-qualification
Search for your Dream Home
Work with your realtor to find the home that fits you. Continue to maintain good credit and check with your loan officer about any financial decisions that may affect your pre-qualification. Work with your loan office to customize a home financing plana for the home you want.
Make an offer with your realtor.
Make a full loan application
Once a contract is accepted, reach out to your loan officer to set up home financing. Provide all required documents in a timely fashion. Work with your realtor to select a closing agent/title company that will handle your title services and closing.
Home Appraisal
Your loan officer will order an appraisal (which you will pay for).
Home Insurance
You will need to obtain homeowners insurance for your new home
Underwriting and Application approval
Work with loan processors and underwriters to formally approve the loan.
An underwriter will look over your loan application from start to finish. They will see if any additional information is required and then make the decision to approve your loan
Settle on your new home
Meet at the settlement table, sign on the dotted line and walk out with keys to your new home.
Common Loan Options
Conventional
A conventional loan is a mortgage loan that's not backed by a government agency. These loans come in all shapes and sizes, and while they don't provide some of the benefits as FHA, VA and USDA loans, conventional loans remain the most common type of mortgage loan
FHA
An FHA loan is a type of government-backed mortgage loan that can allow you to buy a home with looser financial requirements.
Limited FHA 203(K)
Provides financing for minor renovations and repairs up to $35,000 of your mortgage. Eligible repairs include:
Minor remodeling
Roof and Gutters
Plumbing and electrical
Decks, patios, porches
Door, windows
Septic and/or well
Fencing
Any non-structural repairs, excluding luxury items.
3.5% down
Primary residence only
Purchase or refinance
30 year fixed rate
Standard FHA 203(K)
This loan allows the flexibility to finance major rehabilitation costing a minimum of $5,000 up to the FHA county limit. Eligible repairs include:
Repairs on a limited 203(k) PLUS
Structural damage
Major rehabilitation
Room Addition
Work that requires up to 6 months
Work that displaces a homeowner for 30+ days
Basement finishing
Any repairs, excluding luxury items, supported by after improved value appraisal.
1 general contractor
3.5% down
30 year fixed rate
Primary residence only
Purchase or Refinance
Homestyle
FNMA HomeStyle allows you to purchase and renovate a primary residence, second home, or investment property with a minimum down payment of 5% in a single mortgage up to FNMA county limit. Eligible repairs include:
Any and all improvements that are fixed to the property and add value
Structural improvements
Deck, garage, driveways
Landscaping, fencing
Interior updates such as a theatre or game room
May be used to add swimming pools, rec room, garages, accessory units and luxury items.
All conventional loan guidelines apply.
As little as 3% down
Purchase or refinance
Primary, second home or investment
Amortization terms: 10, 15, 20, 25, 20
Up to 75% of after improved value.
Documents Needed for Tips for a Smooth Loan Approval
Personal Identification
Copy of Driver's License or Passport
Copy of Resident Alien Card if not a U.S. citizen
Employment & Income
W-2s and/or 1099s for the past two years.
Most recent pay stubs covering 30 days of employment. Must include employers name and year-to-date income
If self-employed or you have other non-salaried income: two years signed federal tax returns. A year-to-date profit and loss statement may be requested, depending upon the date your tax returns were filed.
Assets and Liabilities
Two most recent statements for all bank, stock and retirement account. One statement if it covers a quarterly period.