Frequently Asked
Questions

Call us! Or if you would rather fill out the pre-qualification form online right away, go here:

homequestlending.net/pre-qualify

Here is a list of information to have on hand for you and anyone else that will be applying with you:

1. Name, DOB, SSN

2. year residence history (including current rent/mortgage amount)

3. 2 year employment history (employer name, position, rough dates of employment)

4. Gross (pre-tax) income amount

After pre-qualifying, your next step is to find your new home! Our loan officers will provide you with a lender letter that you can use with your real estate agent to make an offer on your new home. Feel free to contact us if you haven’t decided on a real estate agent and we can make a suggestion.

The answer to this varies from applicant to applicant and from loan to loan.

There are three main types of loan programs available:

1. Conventional – 5% Down Payment

2. FHA – 3.5% Down Payment

3. VA – No Down Payment Required (in most cases)

4. USDA – No Down Payment Required (subject to income limits and rural property designation)

USDA loans do not have any down payment requirements. They do however have income limits depending on the county that you buy and they are restricted to properties that have been designated “rural”. See our USDA section for more information on these loans.

FHA mortgages have the lowest required down payment at 3.5%. FHA loans also have upfront and monthly mortgage insurance. The underwriting guidelines for FHA loans are less restrictive than Conventional financing in most cases as well.

Conventional mortgages have a 5% down payment requirement – not much higher than FHA. While the guidelines for conventional financing are more restrictive than FHA, the benefits are that we can usually structure a conventional financing option that is less expensive than an FHA loan when you look at the monthly mortgage payment.

If you are a veteran or active duty and have earned your VA benefits, you could qualify for a VA home loan. These are hands down the best mortgages available for people that have little or no down payment. We are always surprised to hear from veterans that aren’t aware of the benefits of this loan program. You are able to borrow up to 100% of the purchase price of the home in most cases, and there is no monthly mortgage insurance. The one caveat to VA financing is that VA loans have a funding fee that the veteran can pay out of pocket or finance into the new mortgage.

Not to worry! FHA and conventional financing both allow for gift funds from relatives and family members. If you don’t have access to a gift, there are many down payment assistance programs in Salt Lake City and throughout the state of Utah that can be utilized by its residents to reduce or completely cover your down payment requirements.

Just about every down payment program has income limits and you will have to be under those limits to utilize the income specific programs available. Some programs only have limits on the person borrowing the money whereas others have income limits on the entire household.

Inexperienced and experienced buyers alike often do not understand the purpose of mortgage insurance or the different types available. Mortgage insurance is insurance that you (the borrower) pay to insure that in the event of a foreclosure the lender gets reimbursed for their costs to process the foreclosure.

FHA loans have mortgage insurance that is backed by the Federal Housing Administration (FHA). You pay mortgage insurance on FHA loan regardless of the size of your down payment. FHA recently changed their mortgage insurance rules to require that monthly mortgage insurance stays on their loans for the life of the loan for all new case numbers. This is different to their prior policy that removed monthly mortgage insurance when your loan balance got to 78% of the original purchase price.

Conventional loans have mortgage insurance that is backed by Private Mortgage Insurance companies. You pay mortgage insurance on conventional loans when you do a down payment that is less than 20%. There are a limited number of Private Mortgage Insurance companies, so their rates are generally the same. However, if you have a good loan officer, they will shop with the various mortgage insurance companies and choose the one with the best rate. This is something we practice at Uptown Mortgage as a matter of course.

Conventional loans allow you to structure your mortgage insurance to be paid monthly, up-front in the form of a single premium, or partially upfront and partially in a monthly payment (called split premium). We will show you the comparison of monthly MI to upfront MI. We rarely do the split premium, but can show you this as well. Ask us today for your comparison so you can see how much you can save with the different options available.

If there’s one thing you will become familiar with when getting a home loan, it is documentation. Don’t fret though, some diligence on your part in the beginning will pay dividends as you move through the loan process.

Here is a generic list of items needed for the loan process:

1. Most recent 2 years W2/1099 forms

2. Most recent 2 years Federal Tax Returns (All Pages)

3. Most recent month’s paystub(s)

4. Most recent 2 month’s statements for Checking, Savings, and Retirement accounts (All Pages)

5. Copy of your driver’s license

6. Homeowner’s Insurance Agent’s name/number

Once you speak with a loan officer you will get a much more refined list of items specific to your situation.

It depends on your situation, but most always we can get your loan closed within 30 days of applying with us.

This can only be determined by having a conversation with a loan officer and having them provide you with some estimates. The simple answer is…it depends! Usually the option with the higher down payment has a lower monthly payment, but you may want to keep your savings as reserves for unforeseen events and go with a higher monthly payment.

Deciding what the best loan structure is for your situation is an iterative process that involves reviewing the pros and cons of different options with a loan officer, and then making a decision once you have all the information. It is our goal to provide you with the information needed to make an informed decision.