Home Purchase Loans

One of the many issues concerning Home Purchase Loans is the size of the down payment. The down payment is the difference between the loan amount and the lower of sale price or appraised value. Many borrowers have no down payment decision to make because they don’t have the money for one. Their challenge is qualifying for a loan without a down payment, for which purpose excellent credit is critically important.

Another consideration when looking for a Home Purchase Loan is shopping lenders. Lenders vary the terms they offer borrowers based on a large number of loan, borrower and property characteristics that they believe affect the risk or cost of the loan to them.

When looking to purchase a home it is important to have your W2's, most recent paystubs, 2 months of statements of your most recent asset statements (401k, IRA, mutual funds, checking accounts, savings accounts, money market accounts, etc...), and copies of 12 months of cancelled rent checks (if you have them) readily available to get pre-approved for a mortgage. You can get pre-qualified based on providing most of this information over the phone, however if you want to get pre-approved you will most likely need to provide your mortgage agent this information for a more accurate and more reliable pre-approval. There is a difference between a pre-qualification and a pre-approval. To be pre-qualified is a generic term used that is based on loosely obtained information. However, a pre-approval is a more accurate and more reliable approval that is required by most Realtors and Sellers to show your good faith and your seriousness about bidding on and buying a home.

Home purchase loans are readily available to all types of borrowers even those with credit issues. Home purchase loans today come with low downpayment requirements. It is even possible to get a home purchase loan without a downpayment at all.Plus, there are numerous government loan programs for low income borrowers which do not place a great emphasis on past credit history.

Home purchase loans often require your downpayment and any assets being claimed on your mortgage application to be "sourced and seasoned" for 2 months or more, meaning you will have to account for where the money came from and tie the money up in your bank accounts for the period of time stipulated by the mortgage company, prior to the close of the loan.

When looking to purchase a home, try to sit down and figure out what the maximum monthly housing payment you can afford and feel comfortable paying each month. Share this with your mortgage professional so you can see in what price range you should be shopping.

» DISCLAIMER: The information contained in this article on 'Home Purchase Loans' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.