Requirements and Guidelines
When seeking a mortgage for an additional property, such as an investment property or a second home, income and property requirements play a significant role in the qualification process. Here's an overview of some key considerations:
Debt-to-Income Ratio (DTI)
Property Condition and Appraisal
The Mortgage Process
The mortgage process guidelines are the same for investing in an additional property as for purchasing your first home. Here are the general steps for the mortgage loan process:
Get prequalifiedSit with one of our loan officers and they can help you determine the home price range you want to look for, based on your credit, income, and assets.
ApplicationOnce you've found the property you want to purchase, or if you're refinancing, you'll fill out a mortgage application for a specific loan amount. Your loan officer will help find a product that fits your needs. We'll issue disclosures and you'll want to provide any/all documentation needed, as soon as possible
File openingWhen your disclosures and documentation come back in, we'll order the title, appraisal, and tax transcripts. Your initial employment verifications (if applicable) are completed. Flood certificates (if applicable) are obtained, and then your file moves into processing.
ProcessingThe lender reviews the initial file and verifies that sufficient information has been provided. Your file is submitted to underwriting.
UnderwritingThe underwriter ensures your loan meets all guidelines, then issues an approval with any outstanding conditions, or a Mortgage Commitment if only minor conditions remain.
From approval to Clear to CloseYour processor will work to obtain any documentation to clear any remaining conditions. This is resubmitted to underwriting, where it is reviewed, and when cleared, the underwriter issues a Clear to Close. With this in hand, the file moves to the closing department.
FinishOur closing department and closing agent work together to finalize numbers. There is a final verification of all debts, employment, and assets used for closing. Closing documents are drawn up. You'll meet with the closing agent, sign the documents, and receive the keys to your new property!