What You Need To Know about Financing or Refinancing a Home Loan

What You Need To Know about Financing or Refinancing a Home Loan

If you’ve recently decided to purchase a home or refinance your mobile home mortgage, you´ve just begun the wonderful process of home ownership. Buying a mobile home should be exciting and a relatively easy experience. However, before you contact your preferred manufactured home mortgage broker, you will want to get a few things together that will help make the process as smooth and painless as possible. Make sure you have on-hand the proof of your income (pay stubs, W2, bank statements) and down payment.

First let's go over Proof of Income

Proof of income includes, but is not limited to, the following:

A. Two concurrent paystubs from your most recent pay period

B. Letter from your employer showing your salary or hourly rate of pay and average hours per week

C. 2 years tax returns (if self-employed) or W2s

D. 3 months bank statements showing your income deposited

Providing the manufactured home mortgage broker with your last three months statements for your primary checking account is not used to check up your expenses, but to ensure there is no recent history of bounced checks or missed/late payments on your outstanding liabilities.

Proof of Deposit

Unless you already own your own mobile home and are applying for a refinance, you will be required by the mortgage broker to prove your deposit. Checking and savings account statements and investment/stock account statements are functional examples of evidence of deposit.

What else will I need to provide?

After having completed your initial application, you might need to provide the mortgage broker with the following:

Clearance for Appraisal:

A licensed appraiser must be allowed to appraise the home to establish the value that is held in the property. This process is generally used to validate the terms of the purchase and guarantee both the buyer and the lender that there is a fair and sound investment in the home.

Purchase of Mortgage Insurance:

There are varying conditions for obtaining mortgage insurance which depend on the amount of down payment you are placing on the home.

For example, if you borrow more than 80% of the purchase price, you may be required to pay Lenders' Mortgage Insurance. This insurance protects the lender given the higher risk associated with lower equity loans (under 20% down payment).

If you´ve invested more than 20% in the down payment on the home, you will more than likely avoid having to obtain mortgage insurance.

Proof of Overtime Income

Unfortunately, lenders will typically require evidence that you have been receiving overtime pay for at least two years before they will consider factoring overtime pay into your approval.

In every home loan scenario, whether a purchase or refinance, there are unique aspects. You may find that your preferred mortgage broker requires more or even less than what you find here. However, if you have any or all of the above items prepared when you begin the loan application process, your transaction will be all the more enjoyable.