What
kind of information will you need to apply for a home mortgage?
Your income and assets will need to be verified. This will be done by you providing
us with your...
- Last
month of paystubs.
- Last
2 years of W2 forms.
- Last
3 months a Bank Statements(all pages).
- If
savings is in a Passbook Savings a copy of the inside cover and last page showing
balances.
- If
you have outstanding loans we'll need address, account numbers, monthly payments
+ balances including credit cards.
- Self
employed borrowers need: 2 years personal + business taxes and year to date profit
+ loss.
- Purchases
require all closing funds including sale of stocks, mutual funds, or other assets
to be documented.
What kind of job history do you need?
The Secondary
Market Guidelines for conventional loans likes to see a 2 year history in the
same field. This is not needed when you have been to school or training for this
field and can show a Diploma or Degree. A one year history in the same field is
generally accepted for an FHA loan. If you are self employed you will need 2 years
of tax returns to show your company's performance.
Why do you have to pay PMI and what is it?
PMI is
Private Mortgage Insurance, to protect the lender from you defaulting on the loan.
The PMI companies pay the lender the difference of the current market value and
what the lender sells it for at foreclosure auction. PMI can be removed after
2 years. When the owner can prove to the lender with an appraisal that they now
have 20% equity. PMI can be avoided with an 80-10-10 loan (See
10% down no PMI)
Who will you make your payments to?
MisterLoan.com
will use one of our 30 national and local lenders to find the best rate for you.
For loan payments each month, most lenders will send a bill with your current
principal balance also the program you choose rate + term will not change.
When do you lock in a rate?
You must have a house
under agreement to lock in a rate. The most important factor is locking in the
rate through your closing date. The points if any can be determined at lock in
time.
What does it mean to escrow taxes and insurance?
If you
do not have 20% of equity in your house (20% down payment) you'll have to pay
your real estate taxes + home owners insurance with your mortgage payment (principal
+ interest).
