For buyers getting ready to buy a house in Iowa City getting pre-approved is the first order of business. If you’re new to the home buying process and not sure where to start a buyer’s agent can help you with that. The biggest benefit of working with a buyer’s agent is that they can streamline the process for you and save you time and energy in a real estate transaction. That includes helping you find the right lender. To do that we ask a couple of loan oriented questions up front and based on the criteria you give us we’ll be able to guide you on your best options. Just to give you an idea of what I mean, here are a couple of the questions I ask:
Are you looking for a loan with a low or no down payment option? Or… Do you intend making a large down payment of 10% – 20% or more?
For those looking for no or low down payment options there are several available here in the Iowa City area.
FHA loans offer a low down payment option, at present 3.5% and although there are several lenders in town that offer them, I prefer to send my clients to someone who specializes in them.
100% Financing Options are still available as in-house loans with some of the local banks here in Iowa City. They are usually 5 or 10 year adjustable rate mortgages (ARM’s) and are very popular with buyers relocating to the Iowa City area who know they may only be here for 3 to 4 years. Fellows or Residents to the UI Hospitals or Faculty and Students to the University of Iowa spring to mind. There is a high demand for these loans – As Iowa City is a relocation destination this makes perfect sense.
I should mention that I also serve clients in Tiffin and there is another 100% financing option for rural areas in the form of the USDA – Rural Development Loan.
These are just a few examples and as you can tell from just this relatively small amount of information, depending on your circumstances there are many different loan programs, so it’s really important for you to hook up with the right lender. It’s my goal as your buyer’s agent to make sure we start out the buying process on the right foot. Getting you Pre-approved for the right home loan by a lender who will get you to closing with the minimum amount of fuss is right at the top of my list. Just email me or give me a call at 319-400-0268 when you’re ready to get started…
In the meantime, here are a couple of things buyers can be putting together ready for that meeting with a lender.
*Documents Required by Lenders to secure financing:
Full Loan Application (If applying by phone this would be sent out by the bank the same day).
2 years of tax returns or W2 forms
Paycheck stubs for most current 30-day period
Monthly debt (who with, how much, loan number)
2 months recent bank statements to verify cash to close
Address of mortgage company or landlord for past 2 years
Drivers license (Legal aliens will also be required to provide visa or alien registration card)
*Depending on the loan, other documents may be required.
Comparing Lenders: It’s always a good idea to compare lenders. Particularly closing costs vary greatly from lender to lender and buyers want to be sure they get the best deal when they buy a home in Iowa City.