Items needed for a loan application may include W-2s and tax returns from the last two years, current pay stubs with year to date earnings, statements for checking, savings, other bank or investment accounts, proof of monthly rental or mortgage payments, and the names of current or past employers. There are also programs available for buyers with non-traditional careers; don’t let the fact that you don’t have access to some of these documents keep you from applying. Two years of employment history is required.

Along with a credit report, lenders will request a credit score (FICO) to help determine whether or not you are eligible for a loan. The score is a credit overview and is weighed by the following:

35% payment history

30% amounts owed

15% length of credit history

10% new credit

10% types of credit used

A median credit score (FICO) ranges from 690 to 740.

There are six steps to the mortgage process: Pre-Approval, Submitting Initial Docs, Processing, Underwriting, Pre-Closing, and Closing. Click here to watch a short video walking you through the whole thing.

You’ve found your dream home and are in the process of closing on your loan, but you haven’t crossed the finish line yet! In this blog, Silverton Mortgage breaks down what you should NOT do leading up to your closing day so that there are no roadblocks as you near the end of your homebuying journey.

Adjustable Rate Mortgage (ARM) – a mortgage whose interest rate changes over time-based on the index.

Annual Percentage Rate (APR) – the total yearly cost of a mortgage expressed as a percentage. It includes interest and other finance charges such as points, origination fees and mortgage insurance.

Debt-to-Income Ratio – the ratio used as a factor in determining if you qualify for a mortgage. Compares your total monthly housing expense and other debt (the amount you pay out) with your total monthly gross income (the amount you earn).

Deed – the legal document conveying title to a property.

Down Payment – the difference between the sales price of the home and the mortgage amount. Buyer pays with cash and does not finance with a mortgage.

Earnest Money – a deposit given to the seller to show that a prospective buyer is serious about purchasing the house.

FHA Loan – a mortgage that is insured by the Federal Housing Administration (FHA).

Fixed-Rate Mortgage – a mortgage in which the interest rate does not change during the entire term of the loan.

Homeowner’s Insurance – Insurance that protects your home and possessions from theft and damage.

Interest – a fee you pay for borrowing money.

PITI – "Principal-Interest-Taxes-Insurance", the four elements of your monthly mortgage payment.

Prequalification – the process of pre-determining how much money a prospective buyer might be eligible to borrow. Prequalifying for a loan does not guarantee approval.

Principal – your loan amount, not including interest; the amount borrowed or remaining unpaid. Also, the part of the monthly payment that reduces the outstanding balance of a mortgage.

Purchase/Sales Agreement – a contract between the buyer and seller that defines the terms and conditions of the home purchase.

Title – written evidence that proves you are the owner of your property.

Underwriting – the analysis of your overall credit and property value and the determination of a mortgage rate and term.