Look no further, vLoan has your back with FAQ's on home puchases.
How do I know how much I can afford?
There isn’t one simple way of knowing how much you can afford, many factors come into play. From a lender’s point-of-view they look at income, debt, assets (this would be how much cash you have for a down payment, closing fees, points and other funds needed to close your loan) and last but not least, credit. Don’t be discouraged if you don’t think you have enough Benjamins saved up, there are many loan programs that offer different terms and rates. Some loan programs allow as little as 3% down and flexibility with credit and income.
How much money do I need to purchase a new home?
This all depends on what type of home and where you want to buy. But to give you a ballpark – a traditional conventional financing requires a downpayment of 10 to 20% of the purchase price of the home; on the other hand, there are programs such as an FHA loan that allows a much smaller downpayment.. Along with your downpayment, you need to consider the other costs and fees, such as closing costs, pre-paid interest, property taxes and homeowner’s insurance. If you would like to learn more, watch our informative videos under “learn” or chat/call our Mortgage Bankers today!
Do I need a home inspection?
For most loans, this is one of those things that isn’t “mandatory”. All things considered, it is a strong suggestion and just a good idea. It lets you know what the condition of the house you’re looking to buy and may clue you in about things you might miss. A professional inspector is trained to identify problems like structural issues, mechanical system problems, or issues with the plumbing, appliances or even the windows.. If the inspector finds something, you have the option to address it with the seller before you decide to buy. Having the seller agree to fix a problem most likely saves you money in the long run.
What type of documentation do I need for a purchase loan?
The standard documentation includes: paystubs covering the most recent 30 days, W-2s for the last two years, asset information such as bank or mutual fund statements covering the last 60 days and current loan information such as your most recent mortgage statement and homeowners insurance declarations page.
How long is the purchase process?
Typically, an escrow period is between 30-60 days. This period is defined on the purchase contract and agreed upon by both the buyer and the seller – this usually dictates when your loan closes. If you have already entered escrow and are closing in less than 30 days – we can still close on time if provided the needed documents! Our technology allows us to move as fast as you want!
What happens at the loan closing?
The great part about vLoan is you don’t have to go anywhere to close your loan. Typically you would have to meet at a designated location to sign your documents. Doing a home purchase with us allows you to sign e-docs from anywhere, how great is that?