The mortgage you choose will be determined by several key factors:
- How much down? Loans with 5 percent down or less are available.
- If you place less than 20 percent down, lenders will want the mortgage guaranteed by an outside third party such as the Federal Housing Administration (FHA), the Veterans Administration (VA), or a private mortgage insurer (PMI, or private mortgage insurance, is required by a lender to protect against any mortgage defaults).
- How’s your credit? The best rates and terms are only available to those with the best credit. To get the best loans, make a point of paying your bills in full and on time.
- Are you a first-time buyer? It might seem that “first-time buyer” means someone who has never owned property before, but under most programs, the term refers to those who have not owned property within the past three years.
To obtain a loan you must complete a written loan application and provide supporting documentation. Specific documents include recent pay stubs, W-2’s and tax returns for the past two or three years if you are self-employed.
Download our helpful Checklist for a Mortgage Application to prepare yourself for meeting a Sail Mortgage loan consultant.