FAQ

Definitely! If you know that you will be approved prior to your house hunt, the process goes much more smoothly.

The process is simple: to arrange to be prequalified for your purchase, take the following steps:

• Gather your personal financial information, such as bank statements, W-2 forms, and paycheck stubs and meet with your PrimeLending Loan Officer.
• Your PrimeLending mortgage professional will pull your credit report and evaluate your financial documents. With this information, you and your PrimeLending Loan Officer can discuss the best home financing options to help you achieve your financial goals.
• To inform both your Realtor and the seller of the property that you a preferred and serious potential buyer, PrimeLending will write a prequalification letter for you. This will give any offer you extend on a property more weight, and it will allow you to relax and enjoy the process of looking for your new home!

Usually, you’ll need to provide documents that verify your employment, income and assets. There are some loan programs that have limited requirements in terms of documentation for certain homebuyers.

Typical loan programs require the following documents:

• A copy of your Social Security card
• Pay stubs for the last two months
• W-2 forms for the past two years
• Bank statements for the past two or three months
• One to two years of federal tax returns
• A signed contract of sale (if you’ve already chosen your new home)
• Information on current debt, including car loans, student loans and credit cards

Different guidelines are established for non-citizens. Each loan type varies, but here are a few guidelines:

• As a requirement, the home being purchased in this country must be the primary residence for FHA loans. Non-citizens also must have a Social Security card and all other documentation regularly required for FHA buyers.
• Freddie Mac underwrites loans for permanent and nonpermanent residents alike, with no special requirements for the latter.
• Through Fannie Mae, non-citizens are required to hold a green card (have permanent resident alien status). Non-permanent resident aliens are required to supply an additional down payment and proof of permission to work in the United States for extended periods through a work visa. Additionally, they must occupy the purchased property.

Be sure to meet with your PrimeLending Loan Officer before choosing a home. This will help you be aware of your specific financing opportunities

In challenging economic times such as these, many people have found themselves with financial difficulties. These times create opportunities to incorporate valuable lessons into a person’s financial planning. When the desire to move into home ownership sets in, you may question what chances exist for those who have encountered financial problems.

The first distinction that is important to make is the difference between a person with a bad credit experience and a person being a credit risk. There is an important difference.

Lenders’ main questions will be along the lines of the following:

• What was the situation of the financial difficulty? What circumstances caused the specific trouble?
• What steps did you take to resolve the issue?
• What measures were taken to prevent the situation from occurring again? Have you reestablished yourself financially? Were the changes that were made the right ones?

If you have encountered challenging credit problems like bankruptcy and foreclosure, your explanation needs to be more thorough; additionally, the greater the credit problem, the more recovery time is necessary.

Everyone finds themselves in tough financial situations at one point or another, but everyone deserves another chance. Do not let previous problems intimidate you and prevent you from trying to get a fresh start!

Deciding on the best loan program for you depends greatly on your personal financial situation. You can focus on your most beneficial options by asking yourself a few questions:

• In the next few years, do you anticipate your finances to change?
• Do you plan to live in this home for a substantial amount of time?
• Would an adjusting mortgage payment make you comfortable or uncomfortable?
• When you enter the next phases of life (children’s college, your retirement, etc…), would you aim to be out of mortgage debt?

When you cover these questions with your PrimeLending Loan Officer, together you can determine answers that will help you choose the loan program best fits your needs and helps you attain your goals.

A FHA loan is a loan guaranteed by the Federal Housing Administration. FHA issues specific guidelines for mortgages. A VA loan is a loan guaranteed by the Veterans Administration. To obtain a VA loan, the borrower must have served in the Armed Forces for a specific time period.

You discuss this with me and I’ll advise you of the rates available for your loan product. You then “lock” the rate and discount points with your loan officer.

The Annual Percentage Rate (APR) is the financing rate calculated with the finance charges over the life of the loan. The interest rate calculates the principal and interest payment for the loan.

When deciding on the type of rate you want, it’s all a matter of time. You’ll want to think about a fixed rate mortgage if you plan to be in your home for more than seven years. Fixed rates provide you with set payments and protection against increasing mortgage interest rates. An adjustable rate mortgage (ARM) would be more suitable if you foresee living in your home for less than seven years. With an adjustable rate mortgage, you open yourself up to the possibility of having your monthly payments increase each time your interest rate changes.

One point is equal to one percent of the loan amount. Points and origination fees are used to buy down the interest rate. Origination fees help pay the cost for the lender to do the loan.

PITI is principal, interest, taxes, and insurance: the components of a monthly mortgage.

There is not an established amount for a down payment for every loan. Depending on your situation and eligibility, you may find very low down payment requirements available. Remember that private mortgage insurance may be required for down payments less than 20%.

Your PrimeLending Loan Officer can help you find a loan program that best fits your financial goals and needs.