You can lock in interest rates at the start of the process, so you'll know ahead of time what your closing costs will be. This will be paid at closing.
Your minimum down payment depends on the type of mortgage you choose, your lender and your finances. By making a 20% or more down payment, you will avoid paying private mortgage insurance.
Since your budget can often dictate where and how much house you can buy, getting prequalified as early as possible will help your home journey proceed smoother.
One of the most important steps in the home buying process is choosing your lender. While we do not require you to work with an Epcon preferred lender, we highly recommend them because they possess a thorough understanding of our process.
The application process varies by lender, however, you typically need the following information for you and your co-borrower spouse, if you have one.
- W-2s (for the last 2 years)
- Recent pay stubs (covering the most recent 30 days)
- Complete bank statements for all financial accounts, including investments (for the last 2 months)
- Signed personal and business tax returns (all pages and relevant schedules)
- If self-employed, a copy of most recent quarterly or year-to-date profit/loss statement
- A copy of the signed Purchase and Sales Agreement
There are a number of different mortgage types, but here are a few of the most common:
- Fixed Rate Mortgages-the interest rate remains the same for the entire term of the loan.
- Adjustable Rate Mortgages (ARM)- the interest rate on these loans is adjusted periodically based on a specified financial index.
- Hybrid Mortgages-these loans start off as a fixed rate for a set number of years and then convert to an adjustable mortgage.
- FHA and VA Mortgages-these are the two most common types of government insured loans are Federal Housing Authority (FHA) and Veteran's Administration (VA).
- Home Equity Conversion Mortgages (HECM)-the FHA’s reverse mortgage program which enables you to withdraw some of the equity in your home.
