Home Mortgage Lending

To help advance the process of being pre-approved for a mortgage, we suggest having the following on hand:

• Government-issued ID
• Bank statements
• Paperwork related to any existing debt, such as other loans or credit cards
• Proof of income, such as pay stubs and the last two years’ W2 forms and tax returns.

For most lenders, your credit score will directly influence the offered mortgage rate. We recommend having a minimum of 620. For more insights and tips on how to strengthen your rating, check out Get to Know Your Credit Score.

The term mortgage rate refers to the interest you will pay on top of the principal amount over the full length of the loan.

Comparatively, APR is shorthand for annual percentage rate. This number summarizes the total sum of acquiring the mortgage, summarized as the yearly interest rate. Unlike mortgage rates, the loan’s APR accounts for origination fees, insurance premiums, discount points, closing costs, and other financial factors.

A Bank of Hope specialist can walk you through the pros and cons of both options, as well as how current mortgage rates and your personal goals could shape your decision.

However, broadly speaking, adjustable-rate mortgages may be a sound solution for individuals who foresee themselves staying in the home for only a few years (perhaps as a “starter” home). In this scenario, they secure the lower rate of the ARM and sell before the fixed-rate terms expire.

A common recommendation is that your mortgage should not exceed 28% of your income, and that your total debts should be greater than 36% of your income. Yet keep in mind that this general advice may not apply to everyone.

The maximum mortgage payment you can afford depends on a lot of factors that we suggest you review with a Bank of Hope specialist. Not only should you consider your salary, expenses, and outstanding debts, but also long-term objectives like saving for retirement or building a college fund.

Yes! However, self-employed individuals will need to provide additional materials in order to be pre-approved for a mortgage. The specifics will vary based on your specific circumstances, but requested documents may include profit-and-loss statements and business licenses.

In the best interest of our customers, we aim to provide mortgages to individuals who are financially prepared. After all, failing to maintain monthly payments results in additional debt and significantly impacts credit scores.

With this in mind, any reputable bank or mortgage company will seek additional proof of financial stability if you are with a new employer or currently unemployed. At Bank of Hope, we account for consistency within your employment and financial histories, your current savings, access to retirement or alternative income, and your credit score.

In conclusion, we may consider pre-approving mortgage applicants who have not been with an employer for at least 2 years, but will require additional information.