Cory Henderson 

Branch Manager - Loan Officer

General Requirements

Buying a home doesn't have to be a stressful process.  With a little preparation, you can save a lot of time and hassle by having all of your documents ready when you apply for a loan.

Here's an outline of the documentation you'll need when you start your loan process.  Additional documents may be needed for certain situations.

• Deposit receipt of down payment along with an explanation of the source of the down payment (gift, savings, sales proceeds, etc.)
• Purchase contract along with any addendum(s)
• Pay stubs for the most recent 30 days
• W-2 statements covering the past two years
• Bank statements covering the most recent three months with ALL pages for checking, savings, ...
• 401K, IRA, or Mutual Fund accounts showing most recent transaction summary
• Stocks or certificates of deposit (copies)
• If self-employed, personal income tax returns for last two years with all schedules
• 12 months cancelled rent checks or the name and address of your current landlord (if applicable)
• Fully executed divorce decree (if applicable)
• Deed, hazard insurance policy, and most recent tax bill if you are refinancing (copies)
• A letter explaining any known credit problems or fluctuations in income

Frequently Asked Questions

What will a lender look at when I apply for a mortgage?

• Lenders typically look at your credit, assets, down payment, income and debt.

 What does it mean to be pre-qualified?

• Pre-qualification is an estimate of how much you will be able to borrow based on basic information about your income, debts and assets.

 What does it mean to get pre-approved?

• With pre-approval, lenders review your finances and provide an official letter that states as long as you meet certain conditions you'll be approved for a specific loan amount and loan program.  Sellers may wish to see a pre-approval letter.

Do I need to have a specific property in mind before getting pre-qualified or pre-approved?

• No.  Home buyers often want to set a budget before shopping for a home, and getting pre-qualified or pre-approved is a great way to determine how much you'll be able to borrow

How long does it take to complete my home loan?

• No two loans are the same, and completion time can vary.  Lenders do everything they can to get your loan completed as quickly as possible, and the process will go faster if you have all of your documentation ready to go.

What is the minimum down payment I can make on a loan? Conventional, FHA, VA

• It depends on the type of loan, but lenders generally require between 3.5% to 20% of the home's value.  Conventional loans usually require a minimum down payment of 5%, FHA mortgages are available for as little as 3.5% down.  VA mortgages have a no-down payment option for eligible veterans.

Will I have to pay for private mortgage insurance ("PMI")?

• If your loan amount is more than 80% of the home's appraised value, you'll need to obtain PMI.

What's the difference between a "second home" and an "investment property"?

• A second home is a home you use personally, like a vacation home.  An investment property is a property you rent out or buy to fix it up and sell it at a higher value.  This could be an apartment property, condominium, or single family residence.

If I have credit problems, will I be turned down for a loan?

• Not necessarily.  Even if you've had credit problems, you may still qualify for a loan.  Your credit score is only one of the factors to qualify for a loan.  Lenders also look at your employment history, income, debt and cash reserves.

How long do I need to pay private mortgage insurance (PMI) if my loan requires it?

• Private Mortgage Insurance must end when the loan-to-value ratio hits 78%, but you can also request that it be canceled at 80% loan-to-value/20% equity.  FHA loans now have a lifetime PMI requirement; you can re-finance your loan to a difference product to remove this lifetime requirement.

Can I apply a gift towards a down payment?

• Some loans, like FHA loans, allow home buyers to use gift funds to help cover the cost of the down payment.