Your Mortgage Questions Answered

By Sheryl Landrum
Calculators for Mortgages Columnist

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In the past year, we have had many changes affecting the way borrowers qualify for new home mortgages leaving many borrowers confused as to what to expect when looking for a new home loan. Here are some of the questions loan officers are asked most frequently when the mortgage process begins for a home purchase or a refinance of an existing loan.

New Laws and Procedures Have Borrowers Asking Questions about Mortgages

1. If I'm self-employed, can I still get a stated income home loan? While there are not too many lenders still doing stated income loans, there are a few. Your best bet for getting approved for a stated income loan is to:
   1. Bring at least a 20% down payment.
   2. Possess exemplary credit scores.
   3. Document strong assets to support your stated income.
   4. Be prepared to pay a higher interest rate.
2. What type of documentation do I need to provide for my mortgage    loan? Mortgage lenders have gone back to the basics. When meeting with your lender, be prepared to provide:
   1. Two year's income tax returns.
   2. Two recent and consecutive pay stubs.
   3. Two recent and consecutive months of asset statements, all pages.
   4. A copy of your current mortgage(s) if refinancing.
   5. A copy of your driver's license.
3. Can I still get an adjustable interest rate mortgage on my home? Yes, adjustable rate mortgages are still around. However, there are fewer investors buying these loans, so they cost more than they used to. There might be little or savings over the 30-year-fixed rate. This is especially true for conforming loan amounts--if you want a jumbo or super-jumbo home loan, you may still save significantly by taking on an ARM.
4. Is help from the government available? Yes there is and loan officers are becoming savvier about the government programs. Until recently, mortgages like FHA and VA were unpopular because it was generally easier and cheaper to get non-government-backed financing. With today's tightened underwriting guidelines on traditional mortgages, and the abandonment of many products by lenders, "guvvies" are the best loans available for many borrowers. Loan officers and borrowers alike are becoming re-educated about the various opportunities offered by FHA, VA, and other programs like community homebuyer assistance.

Today's mortgage market is dynamic and ever-changing. Work with a professional lender to ensure you get the help you need with your new home loan.



About the Author
Sheryl Landrum is a Loan Officer in San Diego, California and a freelance writer specializing in mortgage issues.