The Loan Process


What are the steps involved in the loan process?

When you apply for a mortgage, you will need to furnish information regarding your income, expenses and obligations. It will be very helpful, and save time, if you have the following items available:

  • Two most recent pay stubs from your employer
  • W-2s for the last two years
  • Last two months' bank statements
  • Long-term debt information (credit cards, child support, auto loans, installment debt, etc.)
  • CAN'T AFFORD A 20 PERCENT DOWN PAYMENT? ASK YOUR REAL ESTATE PROFESSIONAL ABOUT PRIVATE MORTGAGE INSURANCE (PMI).

For buyers who qualify for conventional financing, but can't handle the high down payment requirements, ERA Mortgage may still offer this financing with PMI, or private mortgage insurance.

Designed to protect the lender against default by the borrower, PMI allows you to obtain traditional financing with a down payment significantly lower than the standard 20 percent. By using PMI, you may be able to get a fixed-rate or adjustable-rate mortgage by putting as little as five percent down.

As with an FHA-insured loan, you must pay premiums for PMI coverage, the amount being determined by the type and amount of your loan. But unlike FHA financing, the maximum loan amount is determined by the lender. Moreover, PMI premiums are often lower than FHA insurance, and may be paid as part of your monthly mortgage payment, in annual installments, or in a lump sum at the time you obtain the loan.

If you'd like to find out more about the unique advantages of PMI, ask your ERA real estate professional to put you in touch with ERA Mortgage.

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