Which Loan is right for you?

Financial preparation is crucial in the home buying process. Determining your budget upfront helps set your price range, refine search criteria, and save time.

Trusted affiliate, Prosperity Mortgage Company, is here to answer your questions.

Here are some of the most popular mortgage options in the United States. Call your loan officer to discuss qualifications and down payment options and to find out which loan is best suited for you and your home!

• Conventional: This is is the most common mortgage option and usually has the best interest rates. Great option for first time, repeat buyers and investment buyers (20% down payment) with good credit. With 20% down payment no MI required.
• FHA: (Federal Housing Administration) Makes Ownership more aordable with less down payment and easier credit requirements. Great option for first-time homebuyers, lower credit scores, low to moderate incomes.
• VA: (Veteran Aairs) Takes away the need for a down payment without the risk of PMI. Only available to Veterans and active duty military. Great option for Military, veterans, reservists and National Guard members.
• USDA: (United States Department of Agriculture) This mortgage option was developed to promote the purchase of rural land. Only available in qualifying areas. Great option for Primary residence borrowers, homes in qualifying areas.
• ARM: (Adjustable Rate Mortgage) These rates start out lower than any other option, but change with the market (and not always for the better). Great option for any interested borrower that doesn’t mind the risk of rising rates.

Real estate agents, builders and property sellers tend to take pre-approved buyers more seriously. You are able to negotiate with more confidence and in competitive offer situations, a true pre-approval may be the deciding factor to landing your dream home.

Pre-approved:

• A full mortgage application has been completed with a Mortgage Loan Officer
• There has been a thorough review and analysis of a client's credit report
• In most cases, clients have supplied income and asset documentation to the Mortgage Loan Officer for evaluation
• A maximum loan amount can be defined, and mortgage products can be identified to align with a client's financial goals

Pre-approved:

• In general, a full mortgage application has not been completed
• A credit report may or may not have been reviewed
• All information about income and assets is provided verbally
• The maximum loan amount defined is an estimate and it may be difficult to determine without thorough document review

Here is a list of some items your mortgage consultant may request to complete your loan application and get pre-qualified:

• Most recent pay stub for each applicant
• W2's for the past 2 years for salaried and hourly income
• Social Security number
• 2 year address history
• Source of funds for your down payment and closing costs
• Tax returns for the past 2 years
• Gross monthly income
• 2 year employment history
• Other income