Frequently Asked Questions - Mortgage Loans
- Social Security Number(s) for all borrower(s)
- Current pay stubs and previous two years of W-2s for all borrower(s)
- If self-employed, most recent two years of tax returns, including all pages and schedules
- Bank statements for the previous two months
- Investment account statements for the previous two months
- Retirement account statements for the previous two months
- Credit card account information
- Auto loan account information
- Personal loan account information
- Fully signed purchase contract (if purchasing a home)
- Closing costs
- Real estate agent commission
- Property taxes
- Homeowners insurance
- Mortgage insurance
- HOA's (if applicable)
- As a homeowner, you're responsible for upkeep and maintenance. It's a good idea to have extra money budgeted for those expenses.
- Check your Credit Report:
- Lenders review a detailed report of your credit history to determine whether you qualify for a loan and at what rate.
- Fix any Mistakes:
- Once you have your credit report, don't assume everything is accurate. Take a close look to see if there are mistakes that could negatively affect your credit. Check your credit score at least six months before you plan to shop for a mortgage.
- Improve your Credit Score:
- A credit score is the single number that lenders use to evaluate your credit risk and determine how likely you are to make timely payments to repay a loan. In general, the higher your credit score, the better the mortgage rate you can get.
- Lower your Debt-to-Income Ratio:
- A debt-to-income ratio compares the amount of debt you have to your overall income. It's calculated by dividing your total recurring monthly debt by your gross monthly income, expressed as a percentage. Lenders look at this to measure your ability to mange the payments you make each month, and determine how much house you can afford.
NIFA (Nebraska Investment Finance Authority). Generally, the main benefit of the NIFA bond program is a lower fixed rate mortgage loan, resulting in interest savings on the loan over the 30-year mortgage term. The program offers low down payment requirements and limits the amount of closing costs that may be charged by the originating lender. Generally a 3% down payment is required. NIFA offers some loan products that require little or no down payment depending on the location of the property and buyer eligibility. NIFA provides assistance in an amount up to 5.00% of the purchase price. This may be used for down payment or closing costs charged by the lender. The second mortgage loan will bear interest at a rate of 1%. The borrower is required to contribute a $1,000 minimum investment and execute a second mortgage.
FHA (Federal Housing Administration). Both fixed and variable rates available. An FHA loan is a mortgage issued by federally qualified lenders and insured by the Federal Housing Adminstration. FHA loans are designed for low-to-moderate income borrowers who are unable to make a large down payment.
VA (Veterans Administration). Both fixed and variable rates available. A VA loan is a mortgage loan in the United States guaranteed by the United States Department of Veterans Affairs. The loan may be issued by qualified lenders. The VA loan was designed to offer long-term financing to eligible American veterans or their surviving spouses (provided they do not remarry).
USDA. A USDA home loan from the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture.
Fixed Rate. A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan. This allows the borrower to accurately predict their future payments. Variable rate loans, by contrast are anchored to the prevailing discount rate.
ARM (Adjustable Rate Mortgage). A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets.