Financing Tips

Be Ready for the Lender

When you apply for a mortgage, it helps to gather your documents ahead of time. Each lender may require slightly different things, so it’s a good idea to call and ask what they need. In general, you should be ready to provide:

  • Your current and past addresses

  • Your Social Security card

  • Proof of your monthly and yearly income

  • Information about any debts you owe

  • Your employer and how long you’ve worked there

  • Bank statements from the last two months

  • Information about any assets (stocks, property, savings, etc.)

  • A copy of your home purchase contract

After you submit your application, the lender will verify your information, check your credit, and order an appraisal to determine the home’s value. They will also run a title search and collect insurance information. Once everything is reviewed, the lender will decide if your loan is approved.

Financing FAQS

  • Low interest rates have encouraged many people to buy homes or refinance their mortgages. Because of this, many buyers work with mortgage brokers. Mortgage brokers help borrowers complete applications and find loan options.

    If you are considering using a mortgage broker, keep these tips in mind:

    Ask for recommendations.
    Get referrals from friends, family, or a trusted professional at your bank. If your state requires brokers to be licensed, check that the broker has a good reputation and proper licensing.

    Ask how many lenders they work with.
    Good brokers usually work with multiple lenders. The more lenders they represent, the better your chances of finding a competitive rate.

  • Request a cost estimate.
    Federal law requires brokers to give you a written estimate of your mortgage costs within three days of applying.

    Watch the fees.
    Most brokers are paid by lenders through a commission. You may also pay an application fee (often under $300) and possibly up to $750 for appraisals or reports. If fees seem high, ask for a detailed breakdown of the costs.

  • Choosing the right loan depends on your plans and budget. You want a loan that helps you buy the home you want while keeping your monthly payments affordable.

    Adjustable-Rate Mortgage (ARM):
    If you plan to move within a few years, an ARM may work well. These loans usually start with lower interest rates, which means lower monthly payments at the beginning.

    Fixed-Rate Mortgage:
    If you plan to stay in the home long-term, a fixed-rate mortgage may be a better choice. Your payment stays the same for the life of the loan, which provides stability and predictable budgeting.

    To decide what’s best for you, speak with a lender or financial professional who can review your finances and help you choose the right option.