Your Top Loan Questions Answered by LoanGoal.com

Accessing the right loan can be a significant step towards achieving your financial goals. However, understanding the requirements and the process can sometimes seem complicated.

At LoanGoal.com, we specialize in helping individuals navigate the loan process. We are proud to offer our services across the 18 states where we lend, operating from our headquarters in Phoenix, Arizona.

Here are answers to some common questions.

Loan Eligibility & Documentation

Q: How do I prove my eligibility for a loan?

A: Eligibility criteria vary depending on the type of loan. Generally, you will need to provide documentation to verify your identity, income, and financial history.

This documentation typically includes:

• Government-issued identification (such as a driver’s license or passport).
• Proof of income (such as pay stubs, W-2s, or tax returns).
• Bank statements.
• Credit history information.

The specific documents required will be discussed during the application process.

Q: Can I use a loan for an investment property or a second home?

A: This depends on the specific loan program. Some loan programs are designed for primary residences only, while others may be used for investment properties or second homes. It is important to discuss your intended use of the property with your lender to ensure you are applying for the appropriate loan product.

Loan Costs and Financing

Q: Do I need a down payment for a loan?

A: Down payment requirements vary significantly depending on the type of loan and the lender. Some loans may require a percentage of the purchase price as a down payment, while others may offer options with no down payment.

The size of your down payment can affect your monthly payments and whether or not you need to pay for Private Mortgage Insurance (PMI).

Q: Do I have to pay Private Mortgage Insurance (PMI)?

A: Private Mortgage Insurance (PMI) is typically required on conventional loans when the borrower’s down payment is less than 20% of the home’s purchase price. PMI protects the lender in case the borrower defaults on the loan. Some loan programs, however, may not require PMI.

Q: What fees are associated with a loan?

A: Loan fees can vary and may include origination fees, appraisal fees, title insurance, and other closing costs. Your lender will provide you with a Loan Estimate that details all the anticipated fees associated with your loan.

Credit Scores and Underwriting Flexibility

Q: What kind of credit score do I need to qualify for a loan?

A: Credit score requirements differ between loan types and lenders. Each lender sets their own minimum credit score standards. A higher credit score generally increases your chances of approval and can lead to better interest rates and loan terms.

Q: What is underwriting, and what documentation will I need?

A: Underwriting is the process where a lender evaluates your creditworthiness and assesses the risk of lending you money. An underwriter reviews your application and supporting documentation to determine if you meet the eligibility criteria for the loan.

Documentation typically required for underwriting includes:

• Proof of income.
• Asset statements.
• Credit reports.
• Information about the property you intend to purchase (if applicable).

The underwriter may also request additional information to get a complete picture of your financial situation.

Get Started with Your Home Loan Nationwide

We are here to guide you through every step of the process. Our team of experienced professionals at LoanGoal.com can help you understand your options and find a loan that meets your needs in any of the 18 states we service.

Call LoanGoal.com today at (602) 648-5860 or visit our website to apply online.

LoanGoal is headquartered in Phoenix, AZ and is an Equal Housing Lender.