Standard Loan Conditions

Below are some of the key loan conditions you should be ready to meet when applying for financing:

1. Preliminary Documentation: 

• Proof of income (example, pay stubs (30 days), tax returns (two years), or profit and loss statements for self employed individuals).
• Bank statements (two months) to verify savings and assets,
• Credit report and credit FICO score (lenders often require a minimum FICO score). We are approved to pull credit reports from all major credit bureaus on behalf of consumers. 

2. Down Payment

• A percentage of the property price, typically ranging from 3% to 20%, depending on the loan type. 

• Proof of stable employment or consistent income source.
• Employment history of at least 2 years is often required.

• Lenders assess your DTI to ensure you can manage loan payments.
• A DTI beloew 43% is generally preferred.

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• An appraisal to determine the property's market value to ensure the loan amount aligns with the property's worth. 

6. Homeowners Insurance
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• Proof of insurance coverage for the property being purchased.

7. Pre-approval Letter
 

• Pre-approval letter from the lender showing youreligibility and loan amount.

8. Identification and Legal Documents
 

• Goverment-issued ID (e.g., passport or driver's license).
• Social security number or equivalent for credit checks.

9. Additional Requirements
 

• Purchase contract signed and initialed by seller and buyer(s)
• Title search to confirm ownership and ensure no liens or lawsuits on the property.
• Closing costs, which may include fees for the loan application, appraisal report, title insurance, escrow fees, etc.

These requirements can vary depending on the type of loan (e.g., conventional, FHA, VA, or USDA loans) and lender's policies. 

For more details, please feel free to contact us. We'd love to hear from you!