Types of Mortgages
There are several types of mortgage loans, each with different requirements, down payments, and rate structures.
- ✓Conventional: 3–20% down, requires good credit
- ✓FHA: 3.5% down, more flexible credit requirements
- ✓VA: 0% down for eligible veterans and service members
- ✓USDA: 0% down for eligible rural areas
- ✓Jumbo: For loan amounts above conforming limits
The Application Process
The mortgage application involves submitting financial documentation to your lender. They'll verify your income, assets, credit, and employment to determine your eligibility and loan amount.
Underwriting
After you're under contract, the lender submits your loan to underwriting. The underwriter reviews all documentation, orders an appraisal, and makes the final approval decision. This process typically takes 2–4 weeks.
- ✓Respond to underwriter requests quickly
- ✓Don't make large purchases or open new credit accounts
- ✓Keep your employment situation stable
- ✓Be transparent about any financial changes
Closing & Funding
Once your loan is approved, you'll schedule a closing date. At closing, you'll sign your loan documents, pay your down payment and closing costs, and receive the keys to your new home.