Documents needed for mortgage application
Frequently Asked Questions
Straight answers to the questions we hear most.
Jumbo loan underwriting is significantly more rigorous. Lenders will conduct a deep dive into your finances, including:
Verified Assets: You must have sufficient cash reserves, often enough to cover 6 to 12 months of mortgage payments.
Low Debt-to-Income (DTI) Ratio: Most lenders prefer a DTI ratio of 43% or lower.
Detailed Documentation: Expect to provide extensive documentation on income, assets, and employment.
Verified Assets: You must have sufficient cash reserves, often enough to cover 6 to 12 months of mortgage payments.
Low Debt-to-Income (DTI) Ratio: Most lenders prefer a DTI ratio of 43% or lower.
Detailed Documentation: Expect to provide extensive documentation on income, assets, and employment.
FHA Loan: Yes, FHA loan limits are set by county and are based on local home prices.
VA Loan: In 2024, most VA loan borrowers have no loan limit, meaning they can borrow as much as a lender is willing to approve without a down payment. A limit may apply if you have remaining entitlement on a previous VA loan.
USDA Loan: No set maximum loan amount, but your eligibility is limited by your ability to qualify and the area’s maximum income limit.
VA Loan: In 2024, most VA loan borrowers have no loan limit, meaning they can borrow as much as a lender is willing to approve without a down payment. A limit may apply if you have remaining entitlement on a previous VA loan.
USDA Loan: No set maximum loan amount, but your eligibility is limited by your ability to qualify and the area’s maximum income limit.
Yes, your closing can be delayed after you receive the CD. Common reasons include:
Finding a significant error on the CD that requires correction and a new three-day review.
Issues discovered during the final walkthrough that the seller needs to address.
Unforeseen problems with the title or last-minute funding conditions from the lender.
Finding a significant error on the CD that requires correction and a new three-day review.
Issues discovered during the final walkthrough that the seller needs to address.
Unforeseen problems with the title or last-minute funding conditions from the lender.
Eligibility varies by lender and loan type. Conventional loans (those backed by Fannie Mae or Freddie Mac) are commonly eligible. Loans that are often ineligible include FHA loans, VA loans, USDA loans, and some jumbo or portfolio loans. The first step is always to contact your mortgage servicer to confirm your loan’s eligibility.
Yes, ARMs have built-in consumer protections called caps.
Periodic Cap: Limits how much your interest rate can increase from one adjustment period to the next (e.g., no more than 2% per year).
Lifetime Cap: Limits how much your interest rate can increase over the entire life of the loan from the initial rate (e.g., no more than 5% over the initial rate).
Periodic Cap: Limits how much your interest rate can increase from one adjustment period to the next (e.g., no more than 2% per year).
Lifetime Cap: Limits how much your interest rate can increase over the entire life of the loan from the initial rate (e.g., no more than 5% over the initial rate).
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