The following is a list of documents generally required when applying for a home loan. For a fast and easy loan process, have the following items available when you talk to one of our Home Loan Experts:
Having the necessary financial documentation ready when you talk to a Quicken Loans Home Loan Expert will speed up the mortgage process.
Quicken Loans has exclusive loan options for people with special financial situations such as being self-employed or paid on commission.
Your Home Loan Expert can answer any questions you may have, and help you determine what documentation you'll need for your specific situation.
1. Credit History
When you apply for a mortgage, Quicken Loans must access your credit report to know how credit worthy (or risky) you are as a borrower. The higher your credit score, the more likely that you will qualify for a larger loan, better loan options, and/or a more favorable interest rate . In order to access your credit report, we'll need to know your Social Security number and date of birth.
2. Signed Purchase Agreement
The purchase agreement is the contract between home buyer and home seller that defines the terms and conditions of the sale. It's possible to get approved based on your income and asset information, but having a signed purchase agreement makes the process faster and easier.
3. Proof of Income
In order for us to be sure that you are able to make your mortgage payments, we need to see proof that you have a source of income. You'll usually be required to show original pay stubs for the last 30 days. You may also show two years' worth of W-2s (see #4 below), a verification of employment (VOE) or two years' worth of tax returns. How you prove your income can differ based on your situation, and what home loan is best for you. Your Home Loan Expert will explain what type of proof of income you'll need to show.
4. Copies of Your W-2 Forms
Advantage1st No Doc Home Loan
Your W-2 forms will help your lender verify that you are employed and will show your income history.
5. Copies of Asset Information
To qualify for a mortgage, you need to be able to show that you have some money for the closing costs. Acceptable sources of funds may come from other homes with equity ; a savings or checking account; proceeds from the sale of a house; stocks, bonds, mutual funds, a 401k or a money market account; or gift funds. For some home loans, you may need to show statements and/or investment records for these accounts.
6. Copy of Your Earnest Money Deposit
The earnest money deposit is a deposit made by a buyer towards the down payment in evidence of good faith when the purchase agreement is signed. The deposit becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal. Be ready to show a copy of the earnest money deposit if asked.
7. Copy of Homeowners Insurance
Just like when you show proof on insurance when buying a car, you have to have homeowner's insurance to verify that you'll have sufficient coverage on the property when getting a mortgage. Homeowners insurance covers any damages that may affect the home's value.
8. Copy of Title Insurance
Title insurance protects a buyer against any errors in the title of the property. Having a copy of your title insurance will help verify the legal description of the property, the taxes, and the names on the title.
Once you've begun the loan process, your Home Loan Expert will let you know exactly what documentation you'll need to get approved.
If you would like to learn more about the process of getting a home loan, call us at 800-251-9080 to talk to a Home Loan Expert.
http://www.quickenloans.com/mortgage/articles/home_buying.html?lid=3713
Monday, April 30, 2007
Getting Pre-Qualified or Pre-Approved. What's Better?
Confused about what getting pre-qualified or pre-approved means? You're not the only one. There's a big difference between a mortgage pre-qualification, a pre-approval and an actual mortgage approval.
Getting Pre-Qualified for a Mortgage
Getting pre-qualified for a mortgage helps give you an idea of how much you might qualify to borrow. But since you have not actually applied for a loan, and the lender only has your word on your credit, income, assets and liabilities, a home loan or mortgage amount is not guaranteed. With a pre-qualification, no information has been verified. If you receive a letter from the lender, it may only state that you are likely to be approved for a mortgage.
Getting a pre-qualification can be easy and fast. At Quicken Loans, you can get an online mortgage pre-qualification in minutes.
Getting a Pre-Approved Mortgage
A pre-approval goes one step further than a pre-qualification. When getting pre-approved, you may receive a letter stating how much you qualify to borrow. Your lender will pull your credit report and find out what liabilities you have. However, not everything (namely your income and assets) is verified.
Pre-approvals don't always guarantee financing since the buyer's information has not been verified. Think of it this way: a mortgage pre-approval is like getting a pre-approval letter in the mail for a credit card. You can't go to the store and buy anything with that letter—you have to have the approved credit card. Having a firm mortgage approval is like having the actual credit card.
And unfortunately, sometimes not all buyers are completely honest or accurate when they give their financial information to a lender. It's not unusual for some buyers to inflate their income or savings. Issues like these have caused many real estate agents and home sellers to distrust pre-approval letters.
The Solution - a Power BuyerSM Approval
Power Buyer - Get more bargaining leverage than a pre-approval!
The best way to guarantee that you'll have the financing to buy the home you really want is to skip the pre-qualification and pre-approval processes. Quicken Loans offers an exclusive Power BuyerSM approval a mortgage approval* that's good for four months while you shop for a home.
With a Power BuyerSM approval, all of your information will be verified and you will know exactly how much you can spend on a house. Therefore, you won't waste time looking at homes outside of your price range.
While it's helpful to be pre-qualified or pre-approved for a home loan, it doesn't always guarantee you'll be approved for a loan. A pre approved mortgage ensures your financial information has been verified, and really puts real estate agents and home sellers at ease. At the same time, you're in control when making an offer to a seller. They'll know you're a serious buyer who's ready and able to make a deal.
If you would like to learn more about the getting approved for a home loan, call us at 800-251-9080 and talk to a Quicken Loans Home Loan Expert today.
*With a Power BuyerSM, your loan will close as long as the property gets a satisfactory title and appraisal and your financial situation remains the same.
http://www.quickenloans.com/mortgage/articles/prequalified_vs_preapproved.html?lid=240
Getting Pre-Qualified for a Mortgage
Getting pre-qualified for a mortgage helps give you an idea of how much you might qualify to borrow. But since you have not actually applied for a loan, and the lender only has your word on your credit, income, assets and liabilities, a home loan or mortgage amount is not guaranteed. With a pre-qualification, no information has been verified. If you receive a letter from the lender, it may only state that you are likely to be approved for a mortgage.
Getting a pre-qualification can be easy and fast. At Quicken Loans, you can get an online mortgage pre-qualification in minutes.
Getting a Pre-Approved Mortgage
A pre-approval goes one step further than a pre-qualification. When getting pre-approved, you may receive a letter stating how much you qualify to borrow. Your lender will pull your credit report and find out what liabilities you have. However, not everything (namely your income and assets) is verified.
Pre-approvals don't always guarantee financing since the buyer's information has not been verified. Think of it this way: a mortgage pre-approval is like getting a pre-approval letter in the mail for a credit card. You can't go to the store and buy anything with that letter—you have to have the approved credit card. Having a firm mortgage approval is like having the actual credit card.
And unfortunately, sometimes not all buyers are completely honest or accurate when they give their financial information to a lender. It's not unusual for some buyers to inflate their income or savings. Issues like these have caused many real estate agents and home sellers to distrust pre-approval letters.
The Solution - a Power BuyerSM Approval
Power Buyer - Get more bargaining leverage than a pre-approval!
The best way to guarantee that you'll have the financing to buy the home you really want is to skip the pre-qualification and pre-approval processes. Quicken Loans offers an exclusive Power BuyerSM approval a mortgage approval* that's good for four months while you shop for a home.
With a Power BuyerSM approval, all of your information will be verified and you will know exactly how much you can spend on a house. Therefore, you won't waste time looking at homes outside of your price range.
While it's helpful to be pre-qualified or pre-approved for a home loan, it doesn't always guarantee you'll be approved for a loan. A pre approved mortgage ensures your financial information has been verified, and really puts real estate agents and home sellers at ease. At the same time, you're in control when making an offer to a seller. They'll know you're a serious buyer who's ready and able to make a deal.
If you would like to learn more about the getting approved for a home loan, call us at 800-251-9080 and talk to a Quicken Loans Home Loan Expert today.
*With a Power BuyerSM, your loan will close as long as the property gets a satisfactory title and appraisal and your financial situation remains the same.
http://www.quickenloans.com/mortgage/articles/prequalified_vs_preapproved.html?lid=240
Interest-Only Mortgages
An interest-only loan is one that gives you the option of paying just the interest or the interest and as much principal as you want in any given month during an initial period of time after your closing.
At Quicken Loans, we offer a variety of interest-only home loan options, including 30-year fixed-rate mortgages and adjustable-rate mortgages. Our interest-only home loan programs are offered as interest-only loans for periods of either three, five, seven or ten years.
For many, the most appealing feature of an interest-only loan is that you control your payment amount and your cash flow in any given month during the interest-only period, and your monthly mortgage payment will be lower than it would be with an interest plus principal payment. Your interest rate may or may not be lower than a traditional mortgage, depending on your specific situation, but you will have the option of flexible payments.
Who Is an Interest-Only Home Loan For?
There are a number of good reasons to consider an interest only loan. For instance, it might make good financial sense. On a traditional 30-year fixed-rate mortgage, roughly 70% of the payment goes toward interest during the first six or seven years of the loan. If your interest rate is low, then you've borrowed money at a good rate.
SmartChoice Interest-Only Home Loan
Instead of paying down that low rate loan, you could take the extra money you'd have each month from making interest-only payments, and invest it in something that would bring you a higher rate of return. Depending on your loan amount, you could have access to thousands of dollars over the course of several years to invest or reduce high interest debt, including credit card debt.
An interest-only home loan may also be a good option for people who expect to be in their homes for less than ten years. The average homeowner stays in their home between five and seven years. As mentioned before, home mortgage payments are mostly interest for the first years of the loan. Many homeowners like the option of making interest-only payments and using the extra money as they please - save for college tuition, make home improvements, or buy a much-needed new car.
Common Misconceptions About Interest-Only Loans
While an interest-only loan may be an appealing option to many, there are a number of common misconceptions that you should be aware of prior to making any final decisions.
One common myth is that if you're not paying down your loan's principal, you're not building equity in your home. This is not necessarily true. Homes in the U.S. have been appreciating between 5 and 6% a year. Chances are that even if you're not paying down your principal, you're building equity in your home through appreciation.
You should also know that with any Quicken Loans interest-only home loan, there are never any prepayment penalties. You can refinance anytime.
Is an interest-only home loan right for you? Talk to a Quicken Loans Mortgage Expert today to help you decide at 800-251-9080.
http://www.quickenloans.com/mortgage/articles/interest-only-loans_pur.html?lid=1623
At Quicken Loans, we offer a variety of interest-only home loan options, including 30-year fixed-rate mortgages and adjustable-rate mortgages. Our interest-only home loan programs are offered as interest-only loans for periods of either three, five, seven or ten years.
For many, the most appealing feature of an interest-only loan is that you control your payment amount and your cash flow in any given month during the interest-only period, and your monthly mortgage payment will be lower than it would be with an interest plus principal payment. Your interest rate may or may not be lower than a traditional mortgage, depending on your specific situation, but you will have the option of flexible payments.
Who Is an Interest-Only Home Loan For?
There are a number of good reasons to consider an interest only loan. For instance, it might make good financial sense. On a traditional 30-year fixed-rate mortgage, roughly 70% of the payment goes toward interest during the first six or seven years of the loan. If your interest rate is low, then you've borrowed money at a good rate.
SmartChoice Interest-Only Home Loan
Instead of paying down that low rate loan, you could take the extra money you'd have each month from making interest-only payments, and invest it in something that would bring you a higher rate of return. Depending on your loan amount, you could have access to thousands of dollars over the course of several years to invest or reduce high interest debt, including credit card debt.
An interest-only home loan may also be a good option for people who expect to be in their homes for less than ten years. The average homeowner stays in their home between five and seven years. As mentioned before, home mortgage payments are mostly interest for the first years of the loan. Many homeowners like the option of making interest-only payments and using the extra money as they please - save for college tuition, make home improvements, or buy a much-needed new car.
Common Misconceptions About Interest-Only Loans
While an interest-only loan may be an appealing option to many, there are a number of common misconceptions that you should be aware of prior to making any final decisions.
One common myth is that if you're not paying down your loan's principal, you're not building equity in your home. This is not necessarily true. Homes in the U.S. have been appreciating between 5 and 6% a year. Chances are that even if you're not paying down your principal, you're building equity in your home through appreciation.
You should also know that with any Quicken Loans interest-only home loan, there are never any prepayment penalties. You can refinance anytime.
Is an interest-only home loan right for you? Talk to a Quicken Loans Mortgage Expert today to help you decide at 800-251-9080.
http://www.quickenloans.com/mortgage/articles/interest-only-loans_pur.html?lid=1623
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