Getting a Loan

Documents Needed Depending on your mortgage plan you will need certain documents. Having these items ready will make the mortgage process smoother.
  • Copy of Purchase & Sale Agreement, if you are already under contract
  • Two year residence history
  • Two year employment history and current verifiable employment
  • If self-employed, copies of past two years Federal Income Tax Returns and Business Returns
  • Two months of your most recent checking and savings accounts
  • Two of your most recent paystubs along with two years W-2’s
Prequalification Many borrowers take advantage of shopping for a loan before they shop for a home. Prequalification is a confirmation that the borrower has already been reviewed by the lender. A prequalification is not equal to preapproval; true preapproval can only be issued when all needed documents are given to the lender.
  • Getting prequalified for a home tells you how much home you can afford and makes the application process quick and easy.
  • To get prequalified, you must provide the following information: Name, Social Security Number, Address, Phone Number, Monthly Income, Debt
Factors Our Loan Officers understand that everyone has individual needs. They will do everything possible to make your dream of home ownership a reality. Below is a list of factors lenders look at:
  • Debt-to-Income Ratio – Your monthly debt payments divided by your gross monthly income. Loan programs vary in their requirements regarding debt to income ratios. Several factors tied to income and credit will be used to decide which program is best for you. Preferred DTI ratios are generally below 41% however each program and each lender is different.
  • Income Stability – Considers the term of your current employment and previous employment history
  • Credit History – Information provided by the three (3) credit bureaus (Experian, Transunion, and Equifax) which shows your payment history. Most lenders use the middle of your three (3) scores.
  • Loan-to-Value (LTV) – The ratio of loan amount divided by the appraised value of the home. For example, if your loan amount is $90,000 and the value of the home is $100,000, then $90,000/$100,000 = 90% LTV. An increase in down payment reduces LTV and thus the risk for the lender.
  • Reserves– The number of mortgage payments remaining in your accounts after down payment and closing costs
  • Appraisal – The valuation of a property using several comparisons of similar properties as determined by an appraisal company.