Is putting a 20 percent down payment required to secure a home loan?
This is actually a myth that is far from the truth. First-time buyers who can’t afford a full 20 percent down payment or can’t get that much money together quick enough to get the home they want are only required to provide a three percent down payment if they meet certain requirements. There are also some grants available to qualifying home buyers where zero dollars are required for a down payment. This is a tough market for first-time buyers with so much competition for available inventory in the Dallas area. It’s worth it to investigate down payment assistance programs in order for today’s buyers, particularly first-time buyers, to be able to get into a home.
Is it possible to use electronically filed documents during my loan process?
This is a relatively new service available to buyers who qualify, meaning something that their employers and banks participate in. There was a time when borrowers had to supply numerous documents to their loan officer in order to be considered for a conventional loan – everything from bank statements to W2’s. With electronic documentation, we can access almost all these documents electronically with the borrower’s permission. In most cases, all they need to bring us is their driver’s license to verify identity and we do the rest. They simply authorize us to access the records with a one-time code, and we can collect financial documents and W2’s as needed without all of the cumbersome paperwork. It makes securing a loan so much faster and easier.
Is qualifying for a Jumbo loan the same as qualifying for a conventional loan?
No, all types of loans are different for a reason. There are different qualifying factors for all of them. For instance, a conventional loan is for an amount of $424,100 and below, such as Fannie Mae and Freddie Mac loans. Those are very popular conventional loans. A Jumbo loan is for loans higher than that amount. You can’t use electronic documentation for these loans, as discussed above. Lenders require full documentation on all income and assets for Jumbo loans, but some buyers are pleased to learn they can put down as little as 10 percent for a Jumbo loan.
Do I have any chance of qualifying for a home loan if I am self-employed?
Yes, it’s a misconception that self-employed individuals have a difficult time getting a home loan. The documents and information differs from borrowers who are employed by a company or corporation, however. Self-employed borrowers are often asked to provide one or two years of tax returns. Also, lenders ask for a year-to-date and current profit-and-loss statement. Essentially, lenders are looking for a road map to their claimed income. Therefore, it’s important that self-employed individuals looking to buy a home keep very detailed financial records.
About the Expert
Caliber Home Loans
Lisa Peters, a Native Dallasite, is the Park Cities and Uptown branch manager of Caliber Home Loans, a local mortgage company with corporate offices in Irving. With a career spanning more than 30 years, Petershas honed her skill set as a loan originator and has developed a reputation be a go-to source in mortgage lending among REALTOR® referral sources and past clients. Being a trusted advisor equates to long-term financial success for clients. She has serviced multi-generational families through the years–a reward that comes with longevity in the industry. Hands on, high touch, and on-time delivery are paramount with Peters and her skilled team. The mutual goal with every transaction is to make a client for life. Bonus: Caliber services their own loans! Named among the Best Mortgage Professionals in Dallas numerous times, she has been a national top-producer for many years and is the first woman in the history of Caliber Home Loans to rise to the No. 1 position.