How can you be sure you’re making the best decision about your home financing? There are so many choices, different requirements, and special programs … it can make your eyes cross.
When you apply for your mortgage, you’ll be asked a lot of questions about your finances, and the lending team will need to gather paperwork from you. If you can get started gathering these things now, it will help your application move along more smoothly when the time comes.
Documents to gather include:
- Most recent tax returns
- W-2s and/or 1099s
- Recent bank statements
- Recent paystubs
- Residence history
- A list of all your debts, such as credit cards, car loans, student loans
- A list of all your assets, including investment and retirement accounts
Different loans for different folks: What suits your sibling or neighbor may not be right for you. Do you have 20% of the sales price in cash as a down payment? If so, you may want a conventional loan. Short on cash? An FHA loan only requires 3.5% down. Here are a few other common types of loans:*
|Loan Type||Good for People Who…|
|Conventional||Have good credit and funds for a larger down payment.|
|FHA||Needs a lower down payment.|
|VA||Are veterans, active-duty members, and military spouses.|
|USDA||Want to live in a rural area (Guess what? Most of the country is eligible for this loan!).|
|Jumbo||Need financing for more expensive homes. These loans typically have a higher interest rate than conforming conventional loans but offer flexible financing features.|
|Construction||Plan to build a new home from the ground up.|
*This chart is for example purposes only and does not fully outline the specific requirements of each loan program. Program rates, terms, and conditions are subject to change at any time.
“With the vast array of loan options available these days it can certainly feel overwhelming. Home loans are not a one size fits all product. It only takes a few minutes to get pre-qualified, and the information shared during that time will help tremendously to pick the best product for you!”
– Jason Peters, Mortgage Loan Manager, Kansas City, MO. NMLS 402102
Looking for more information on a home loan? Contact a lender today!
*Down payment amounts are not guaranteed and depend on a variety of circumstances. All loans are subject to credit and property approval. Certain restrictions may apply.