Mortgage Basics
Let’s talk about the basics of getting a mortgage.
In-House Lender
The first thing to know about mortgage basics is that Homestead is an in-house lender. That’s a huge advantage to you as the borrower because we do everything in-house, from taking your application to funding your mortgage.
Because we control all parts of the mortgage process, we can close much faster than most lenders. For purchases, we can close in as little as 14 days. For refinances, 30-day closes are normal.
Documentation
Needed documents
• 30 days’ pay stubs
• 2 years W2s or1099s
• 2 years federal taxes
• 2 months bank statements
• Driver’s license
• For refinances – mortgage statement and HO insurance
Application
Once you have your documentation, it’s easier to fill out your application. Plus, we’ll help you and fill out as much of the information as possible for you. That saves you time.
Credit Pull
We’ll pull the credit of all borrowers. The reports will show current debt, credit history, and scores. Having that information will show us what type of loans would be best.
Type of Loan
Once we have the above data, know your budget, and amount you have for a down payment, we’ll discuss your loan options. We offer Conventional, VA, FHA, USDA, and Jumbo loans.
Loan Terms & Interest
Loans come in fixed and adjustable rates. When interest is low, fixed is best. Terms come in 30, 20,15, and 10-year. Interest rates mainly depend on credit scores and history.
Private Mortgage Insurance
Conventional and FHA loans have private mortgage insurance if you put down less than 20%. That can add a $100 or more per month. VA and USDA loans don’t have mortgage insurance.
Collateral
The loan is secured by the property. That makes it different from an unsecured personal loan or a credit card. If you don’t pay your mortgage, the bank can take back the property.
Find a House
If you’re refinancing, move on to the next step. Otherwise, you’ll start shopping. Finding a house can take weeks to months. You may put in several offers for one to be accepted.
Insurance & Taxes
We’ll be able to tell you how much your property taxes will be. You’ll need to get an estimate for homeowners’ insurance from your agent. Let us know if you would like a referral.
Loan Estimate
Once you’ve found a home, we’ll give you a loan estimate. You’ll see your mortgage payment amount including, principal, interest, taxes, insurance, any PMI, or homeowner dues.
Inspections
It’s inspection time. The home inspector will examine the structure and systems of a house, from foundation to roof. Then, the appraiser will estimate the property’s value.
Underwriting
When your file is complete, processing will send it to the underwriting department. If the underwriter has any questions, answer them quickly to keep the process moving along.
Closing
Once your loan is approved, we’ll work with you and your realtor to schedule closing your loan. We’ll also give you specific instructions on where to go and what to bring.
Read on to see what our clients say about us.
Bradley H. says…
Alicia handled our needs above and beyond our expectations. The entire process, form first contact to our closing. was completed in less than 30 days, thank you, Alicia! I am a business owner and always struggled with Processors understanding the income flow of a business owner, Alicia completely understood and knew exactly how to proceed correctly without delay or frustration. I highly recommend Alicia to anyone going through the purchase of a home.
Stephen S. says…
Aaron' ability to effectively communicate, respond in a timely manner, friendly demeanor, and overall professionalism made this a 100% easy experience. His knowledge of his industry is amazing. He is clearly a subject matter expert and a professional.