Purchases and Refinances

We've been in business since 1989 doing mortgages in Georgia and Florida.  As of April 2021, we are licensed for residential home mortgages in Iowa.  

1.     How much money do I need to use for a down payment so that I don't have to pay mortgage insurance?

         20% of the purchase price.  For example, if the purchase price is $300,000, the down payment needs to be $60,000. 

2.      What does LTV mean?

          Loan to Value.  This means the ratio of the loan amount to the value of the home.  For example, if you put $60,000 down on a home valued at $300,000, the LTV would be 80%.  The loan amount is $240,000 which is divided by the Value or purchase price of $300,000 which equals the LTV of 80%.

3.      Can I put less money towards the down payment?

          Yes.  Some lenders have loans that will accept 3% for the down payment on a conventional loan that will require mortgage insurance.  Don't confuse the FHA 3.5% down payment (See the FHA page for details) with the conventional 3% down payment.  These are very different in structure and cost.

4.      I'm a salaried worker and receive a W2.  Which documents do I need?

         1.     Legible copy of your driver's license AND social security card OR passport.

         2.     Two most recent years of W2s.  Tax returns are no longer required for W2 earners.

         3.     Two most recent pay stubs with year to date pay.

         4.     Two most recent months of bank statements - ALL PAGES - including blanks.

         5.     Most recent quarterly statement for asset accounts (401K, IRA, stocks, etc).

         6.     Contact information for your home owner's insurance agent.

         7.     Copy of your most recent mortgage statement if you currently own a home.

         8.     Depending on your situation, other documents will be required:

                   -      Security Award letter if you are retired.

                   -      Two most recent tax returns - all pages including blanks if you are self-employed.

          9.      Probably more information will be required based on your personal financial position.

5.     How long does the process take?

         This is dependent upon many factors including market conditions, type of loan, how fast clients respond to request for documents, underwriting turn times, difficulty of the financial position and loan process.  That written, most loans can close in 30 days.  Some will be as little as 9 days and some as much as 60 days.  A blanket guarantee of 15 or 30 days should raise flags because each loan is very individual.