Sometimes buying a home might feel like climbing a mountain. It's a bit scary but also exhilarating. Maybe you feel a little lost, wondering which path to the summit you should take.
We totally get it. That's why we're here.
At Elevate Mortgage Group, we'll be your mountain guide, helping you navigate the different loan options, mortgage rates, and other parts of the home buying process. We'll be with you every step of the way as you climb the mountain towards home owners hip.
An adjustable rate mortgage combines a lower initial rate & payments with the flexibility to take advantage of future rate drops.
Conventional home loans are often processed quicker and may not require you to pay upfront or monthly mortgage insurance.
FHA home loans have smaller down payment requirements and will accept buyers with credit scores that are less than ideal.
USDA home loans offer low interest rates, no down payment options, and the ability to roll fees, closing costs, and repairs into the loan.
Current & former military can get lower rates and reduced closing costs without down payment or mortgage insurance requirements with VA home loans.
Want your dream home? Our jumbo home loans have higher limits and don't require private mortgage insurance.
Homeowners interested in a fixer upper can use FHA-backed 203k home loans to cover the cost of the home and its necessary renovations in a single loan.
So, you're ready to tackle that mountain. But before you get to the base camp and go barrelling up, you need to make sure you pack the right supplies because being prepared will make getting a home loan much easier. Here are five essentials you'll need to get started:
Check your credit score (and clean it up or fix errors, if necessary), pay down credit card balances, avoid new debt, and continue paying bills on time.
Most mortgage companies prefer that your debt-to-income ratio is around 36% or less, and for most home loans, a better credit score will give you more flexible options and lower rates.
Home loan lenders want to see that you can be responsible with your money––it shows them that lending to you is less of a risk.
At the very least, you will need:
Your last two pay stubs with year-to-date earnings
W-2 or I-9 forms for the past two years
Tax returns for the past two years
Documentation of outstanding balances and minimum monthly payments for any auto loans, student loans, credit cards, or other debts
Several months of statements for all savings & checking accounts, CDs, IRAs, stocks, bond, or other assets
Your residential history (including addresses and the names and addresses of any landlords) for the past two years
You'll want to have a steady, stable income for at least a year, but two to three years at the same employer is even better.
It's also a good idea to maintain the status quo––if you're married and both of you have jobs, neither of you should
quit in the year before applying for a home loan. It's also especially important that neither one of you quit before
the loan has closed.
� For those who are retired or on disability, simply maintain consistent benefit levels.
Depleting your savings to pay the down payment and closing costs can be a red flag for lenders. Even if your loan type doesn't require a down payment, having cash shows lenders you're responsible, invested, and more likely to pay off the loan.
During the loan process, you should avoid putting too many charges on credit cards. A cash reserve can help you cover loan-related expenses like appraisals, home inspections, title searches, and application fees without putting your approval in jeopardy.
Pre-qualification is a good indicator (though not a guarantee) that, when the time comes, you'll get approved for a home loan, and it's non-binding!
It will also help you to figure out what kind of home you can afford, so you can avoid the disappointment of thinking you want to climb a specific peak toward one type of house, only to find out later that it's out of your budget.
Like any good climber, it's important to know your limits before you head up the mountain. Just because you've pre-qualified for a specific loan amount doesn't mean you have to use all of it.
A mortgage calculator can give you a better idea of what you might be comfortable with. Using the home loan rates specified in your pre-qualification letter, with your pre-qualified amount as a starting point, you can see what the monthly payments will look like.
From there, you can decide if the climb would be too steep for your pocket-book. If it feels too high, simply adjust the home loan amount until you get to a payment you’re comfortable with.
Whether you still need help deciding which type of home loan is right for you or you still have questions about how to start the home buying process, we at Elevate are here for you. From first time buyer loans to second or third mortgages, we believe in home loans for all.
We believe in home loans for you.
Connect with us today. We'll get you to the right elevation, where your home is waiting.