Borrowing for beginners
Homeownership starts here!
If you want to buy a home, you’ll almost certainly need a home loan. And while looking at homes on the internet or in person is much more fun than thinking about a mortgage, starting with your financing will make your home search and purchase much easier. It doesn’t have to be scary, either. Read this article and you’ll be more than ready to talk to your CrossCountry Mortgage loan officer.
Do I need a 20% down payment?
No! There are many loans with much lower requirements, and some with no down payment at all. If you qualify for a Veterans Affairs (VA) loan, or want to buy a home in an area covered by the U.S. Department of Agriculture Rural Development program (USDA), you can get a loan with 0% down. Federal Housing Administration (FHA) loans require only 3.5% down, and there are 3% down loans from Fannie Mae and Freddie Mac. In addition, many states, cities, and counties offer down payment assistance programs to help with your loan costs. Your Preferred Mortgage Savings Plan from CCM makes your home loan more affordable, too.
Will I need to provide a lot of documents?
When you take out a loan, we need to know you can repay it. That means gathering information about your income, your debts, your assets, and your credit history. In general, we’ll ask for:
- A government-issued ID
- 2 years’ W-2s and/or 1099s
- 2 years’ tax returns
- 3 most recent bank statements
- Most recent statements for any mutual funds, IRA/401(k), or stock accounts
We’ll check your employment and pull your credit, and depending on your specific circumstances, there may be other documents required.
All of this takes place securely and with respect for your privacy. The good news? At CCM we can gather most information electronically, saving you time and hassle.
Should I be pre-approved?
It’s no secret the housing market is competitive. If you wait until you find a home to start your financing, your competition will have their offer accepted before you even start yours. Your best first step is a pre-approval. When you’re pre-approved, you have made an application for a loan, supplied the required documents, and passed through underwriting. You’ll know exactly how much loan you can get, and when you make an offer, the seller will know you’re a solid buyer. One more tip: most real estate agents require their buyers to be pre-approved.
Can I get a loan for a fixer-upper?
We offer low down payment FHA renovation loans, so don’t let financing concerns stop you from looking at less-than-perfect homes. Your dream home may be a diamond in the rough.
Talk to your CCM loan officer!
You’re making big decisions, so don’t go it alone. Your CCM loan officer will answer your questions clearly, help you understand your loan options, and walk with you through the loan process. Now – get pre-approved and go find your new home!