Loan Application Information
Loan Application Information
Applying for a Loan
Congratulations! You are only a few steps away from realizing your dream of homeownership. When the offer you make on the home of your dreams is accepted and you have a signed purchase contract in your hand, call us immediately. As of that moment, your interest rate protection will be extended for 45 more days (or for up to 60 days in the case of government loans), giving us enough time to completely process your loan.
The Documentation You Will Need
To be approved for a loan, we need to know about your sources of income, your debts, and your credit history. You have already given us the necessary information to at least pre-qualify you for a loan. Now is the time to apply formally for a loan, filling out a complete application, and supplying us with documents that verify the information that you have given us. Having the proper documentation makes the loan process much quicker and easier for everyone.
Below you will find the documentation that you should bring with you when you are applying for a loan:
- If your income comes from a salary:
- Original W-2’s for the past two years.
- Original paycheck stubs covering most recent 30 days
- If you are self-employed:
- Tax forms for the past two years
- Your current account balance
- Declarations of Gains and Losses from the beginning of the year
- If you have income from other sources:
- Pensions, etc. – Authorization letter(s)
- Real Estate Properties – Tax forms for the past two years – Rental contract(s)
- Other – Any proof that you are receiving other sources of income
- If you have checking or savings accounts:
- Past three months’ statements
- If you have co-borrowers who would like to be approved together with you for the loan, please bring:
- The name(s) of the co-borrower(s)
- If you do not have a credit history, do not give up. Our Home Loan Consultants will do everything possible to help you get a loan. Please bring:
- Gas and electricity payment receipts
- Telephone payment receipts
- Rent payment receipts
- Any evidence of regular and timely monthly payments you have made. This can include auto of life insurance payment receipts, furniture or jewelry payment receipts, catalog purchase payments, computer payments or encyclopedia payments.
Choosing the Ideal Loan
In the home loan world, there are two types of loans – those with fixed interest rates, and those with variable interest rates. We offer a large variety of fixed-rate and variable rate loans to accommodate each borrower’s needs and preferences. Of course, we will also help you choose the ideal loan for you, but it is important that you know the difference between these loans.
Fixed-Rate Home Loans
The most popular home loan is the traditional fixed-rate mortgage. Generally this interest rate is a little higher that the initial rate you receive with a variable-rate mortgage. But what makes this loan so popular is that with a fixed-rate loan, you have the assurance that your interest rate will never rise. Also, your monthly payments of interest plus principal will always remain the same. If you are the kind of person who prefers the stability of knowing exactly how much you will pay each month, this could be the ideal loan for you.
Why are down payments so low on some properties?
These are offers that lenders make, but they are not ideal for everyone. A borrower must qualify for the exact loan offered. Remember that in many cases, the lower the down payment, the higher the monthly payment, and the higher the probability that the borrower needs to purchase mortgage insurance. If you are interested in a loan with a low down payment, ask us about getting one. We offer many types of loans with low down payments and less stringent qualification guidelines.
Variable-Rate Home Loans
In recent years, the Adjustable-Rate Mortgage (or ARM) has become famous for its low initial interest rate. The primary advantage of this loan is that it permits you to qualify more easily for a loan, or to get a larger loan. Due to the fact that the variable-rate home loan is based on a published rate called an Index*, your interest rate can rise or fall, meaning that your monthly payments can also increase or decrease. Variable-rate home loans can even save you money in the long run, if interest rates remain constant or fall. *Indexes are published in the financial section of many newspapers and are also available on the Internet.
Additional Types of Loans
In addition to offering you home loans, we also offer a variety of loans for home improvement, to help you save energy, and to consolidate your debt. Ask us how we can help.
Special Loan Programs
We offer special types of loans that cover the cost of the home, as well as the costs of needed repairs or improvements. This type of loan is based on the value of the home after the repairs/improvements are made.
Reasons to Select Certain Loans
Your Homeownership Objective Your Home Loan Strategy
If you plan to live in this home for many years – You may want a low interest rate for the long term. Since you will be making loan payments for many years, your best strategy may be to get a fixed-rate home loan and pay points to achieve the lowest possible interest rate.
If you plan to sell or refinance your home in several years – Avoid points and closing costs, since the difference in interest payments does not make it worth the trouble, in comparison to what you will have to pay “out of pocket” during the close. Additionally, try to get a lower down payment. An adjustable-rate home loan (ARM) is typically a good option for an established period of time as interest rates are typically lower than fixed rates during the initial established period lowering the monthly payment.
If you want to pay off the loan before your children go to college – Look for a shorter-term loan such as a fixed-rate 15 year loan, to make sure that you can use your earnings for other purposes later in your life. Additionally, the payments you will be making will make your home equity rise quickly.
If you want to budget a fixed payment each month – A fixed-rate home loan offers you a principal plus interest payment that remains fixed throughout the life of the loan.
If you are comfortable knowing that there may be periodic changes in your interest rate, because you know that this way you can buy a better home now – The adjustable-interest mortgage (ARM) is a very good solution for those whose income will grow, those who will refinance quickly, and those who are comfortable making a higher monthly payment in a few years if interest rates rise.
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