SECURE A RESIDENTIAL HOME LOAN WITH EASE:
GET PRE-APPROVED TODAY

Your credit score and credit history will be verified when getting pre-approved for a loan. However, the required credit score will depend on the kind of loan you are applying for. There are certain federally subsidized loans available for people who have lower credit scores (580), however, those with higher credit scores (780+) can secure the best interest rates.

Lenders will check to see your pay stubs over the past 2 years. This includes checking your W2 statements and tax returns. The lender may also check to see if you are employed by contacting your employer. Self-employed homebuyers will have to prove additional information about the stability of their job and income.

Lenders will check your bank account/ investment accounts to see if you have the cash to cover a down payment and pay for closing costs. The cost of your down payment will vary depending on the type of loan you are approved for. IDENTIFICATION: When securing a loan, you will need to provide proof of your identity. This is typically exercised in the form of a driver’s license and social security number.

When it comes to a residential mortgage loan, the loan is typically secured and requires collateral. The home you end up purchasing is also often used by the lender as a form of collateral. If you fail to pay your mortgage, the bank/lender can seize your home.

Over the past few years, homebuyers experienced a one of a kind stroke of luck. Thanks to historically low interest rates, many first time homebuyers were able to secure themselves an affordable mortgage rate to purchase their homes. However, the low interest bonanza was not without its pitfalls.

The low interest boom resulted in a highly competitive market with home prices soaring to unprecedented levels. Many homebuyers entered bidding wars and ended up paying far above asking to buy their home.

Current mortgage rates do not look anything like they did back in 2020! At present, the average interest rate for a 30-year fixed term loan starts at 7.12%. This increase in interest rates has resulted in a drop in home prices and a slowdown of the market, which can be a good thing for certain homebuyers.

Though it may be more difficult to secure a loan in today’s market, lenders are working hard to improve and expand accessibility. Furthermore, while the era of historically low residential interest rates may be over, you can always secure the loan now and refinance later if interest rates go down again.

In addition to traditional residential loans utilized for purchasing a pre-existing home, there are other kinds of loans available designed for other purposes, namely financing construction projects or purchasing a plot of land.

An alternative to purchasing a pre-existing home, is building a new one. A construction loan is designed exclusively to aid in the building costs of a new home or renovation of a pre-existing home. Unlike a typical home mortgage loan, which is issued for a 10-30 year term with reduced interest rates, a construction loan is a short term loan with higher interest rates.