Combo Loans are actually two separate loans – a first mortgage up to 80% of value along with a second mortgage for the remaining funds needed to purchase a home. This combination is intended to avoid the need for PMI, but higher costs and fees for the 2nd loan may offset any savings. Combo loans may be available in some markets and not in others.
The time it takes to buy a home will vary based on your specific situation. An online home loan application has simplified the application process by allowing borrowers to apply anytime, anywhere with an internet connection in as little as 15 minutes. In most cases, a home buyer is able to complete the entire process from contract to closing within 45 to 60 days. There is a 120 day limit on the information provided, so after 120 days you may need to provide new or updated documents.
DO keep originals of all pay-stubs, bank statements and other important financial documentation. Your lender is required to update any documents that are over 30 days old prior to the closing of your mortgage loan. (This is required even if your loan is approved.
DO notify your Loan Officer of any employment changes. (e.g.: change of employer, recent raise/promotion, transfer, change of pay status, such as salary to commission scale, etc.
X DO NOT make major purchases during or prior to closing (e.g.: new car, furniture, appliances, electronics) as this may impact your qualification ratios. Please confer with your Loan Officer to have him/her calculate what your ratios would be with any additional debts.
X DO NOT obtain and/or deposit unusually large sums of money without notifying your Loan Officer. FNMA/HUD guidelines require documentation as to the source of these funds (e.g.: copy of bonus check, copy of tax refund, copy of insurance settlement, gift letter with copy of check and deposit slips, etc.)
For most people, this is just a matter of organizing documents they already have on hand. Taking a little time to get your papers in order for the Loan Officer will make the application process easy and the approval process swift. A little time spent now means a lot of time – and even money – saved later, so follow these tips to take the headache out of home ownership.