HOME MORTGAGE GUIDE

Down payments are usually between 3.5%^{[cite::158::cite]} and 20% of the purchase price of a home. The size of your down payment will help determine the type of mortgage loan that's best for you.

In general, a larger down payment can help you avoid paying mortgage insurance. This type of insurance may be required when you have a down payment of less than 20% of a home's purchase price. 

To determine the price range of home you can afford, use the worksheet below to figure out your debt-to-income ratio. This ratio shows how much of your monthly income would be used to pay debts.

Mortgage lenders look for debt-to-income ratios that are typically below 43 percent.

Once you've completed the tables below, recalculate them using a larger or smaller mortgage payment to see how it affects your ratio. The worksheet can also help you determine how paying off a credit card or auto loan would affect your ratio.

1. LOAN APPLICATION – A Vectra Bank Home Financing Officer will discuss financing options, and assist you in completing a mortgage loan application form. 
   
   
2. CREDIT REPORT – Upon completed application, a credit report fee will be collected from you. Based on information within your completed application and the credit report, a conditional pre-qualification may be provided to you. 
   
   
3. LOAN ESTIMATE – Within three business days of lender's receipt of a completed mortgage application, the applicants will be issued the "Loan Estimate" (LE) form, which will help borrowers understand the risks, charges, and key features of their mortgage loan. Supporting financial documentation will not be collected from you until Vectra has received your intent to proceed with this transaction.
   
   
4. SUPPORTING FINANCIAL DOCUMENTATION – Once your Early Disclosure package has been received and reviewed, and you have communicated confirmation to continue with transaction, Vectra will provide you a listing of supporting financial documentation, which may include W2s, pay stubs, tax returns etc
   
   
5. APPRAISAL AND TITLE INSURANCE – Once your Vectra Home Financing Officer has received your intent to proceed with the mortgage transaction, an appraisal fee will be collected from you and title insurance will be ordered.This step can begin as you are gathering the financial documentation from Step 4.
   
   
6. LOAN APPROVAL – Upon receipt of the appraisal/title insurance and requested financial documents from the customer, the loan is ready to submit to Vectra Bank's underwriting team for approval. Additional conditions may be added at this time.
   
   
7. LOAN DOCUMENTS – Once all loan conditions have been received and approved by the underwriter, loan documents are prepared and forwarded to the title company.
   
   
8. CLOSING DISCLOSURE – This is the final loan disclosure. It provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs). 
   
   
9. SIGNING AND FUNDING – After receiving the loan documents, the title company prepares the final closing documents and schedules an appointment for you, the borrower, to sign documents. Signed documents are returned to the lender, and funds are disbursed.
   
   
10. CONGRATULATIONS! – You are now the proud owner of a new home! Congratulations!