Ten Things Not to Do When Getting a Home Loan
- Do not change jobs, become self-employed or quit your job.
- Do not apply for a new auto loan.
- Do not spend money you have set aside for closing.
- Do not omit debts or liabilities from your Ioan application.
- Do not buy furniture on a new or outstanding credit card.
- Do not originate any inquiries into your credit.
- Do not change bank accounts.
- Do not co-sign a loan for anyone.
- Do not use credit cards excessively or let current accounts fall behind.
- Do not make large deposits without checking with your loan officer.
Down Payment Assistance Q & A
Q: What’s the maximum amount of funds I’m able to receive for down payment assistance?
A: $15,000
Q: Do I have to pay the money back?
A: Yes, this program puts a second mortgage on your home that you pay back monthly along with your mortgage payment. It’s repayable over a 10 year term.
Q: Do I have to borrow the full $15,000?
A: No! You can use as much or as little of the amount that is needed.
Q: What all can the assistance funds be applied to?
A: The funds can be applied to cover down payment, closing costs, and even appraisal gaps!
Q: Is there an income limit on this program?
A: Yes! Qualifying income cannot go above $137,000.00.
Q: Can I shop rates for down payment assistance?
A: The rate for down payment assistance is set daily by ADFA, so every lender will have the same rate. Lender’s fees could always be different, though!
Mortgage Application Checklist
Income Information:
- 30 Days pay stubs for each borrower, with year-to-date information
- W-2 forms for the past two years
- Federal Tax Returns for the past two years (all pages/schedules)
- Written explanation if gaps in employment or not employed in last two years
Credit Information:
- Most recent two month’s checking account statements – all pages
- Most recent statement on any asset listed on application
- Example: savings, 401K, investments, etc.
- Bankruptcy papers – complete copy of all pages, including discharge papers
- Complete Divorce Decree, including child support order
- Credit Explanation Letter
- If renting, need Landlord’s name______________________
- Landlord’s address: ____________ Phone: ____________
- Explanation letter for all credit inquires in the past 90 days
- Alternative credit sources (if used)
Other information:
- Copy of Driver’s License
- Copy of Social Security Card
- Homeowners Insurance Information:
- Agent’s Name:______________ Phone:_____________
- For refinance loan – copy of current mortgage statement & homeowner’s insurance declarations page