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What should I ask my lender?
Start with, "What type of loan is best for me?" If you've done
some groundwork, you should have a pretty good idea of the type
of loan you need. Lenders
may offer options you haven't considered, or even something you
haven't yet heard about.
Follow up with these important questions:
What will my closing costs be?
At closing, you'll be required to pay a number of fees such as
transfer of title, origination and appraisal, attorney services,
credit report, title insurance and inspections. Lenders are required
to provide an estimate of these costs to you within three days
after they receive your application, but you can always ask for
an estimate sooner.
Will I be charged points?
Sometimes you'll have to pay points (one point = 1% of the loan
amount) in order to "buy down" your interest rate. Before proceeding
with your loan application, find out if there are any points attached
to your loan.
What items must be prepaid?
Some expenses, such as the first year's property taxes and insurance,
must be paid at closing. Your
l oan counselor will let you know what's required.
How long will I be guaranteed the quoted interest rate?
This is called "locking in" a rate. When you apply for your loan,
your endery will lock in the agreed-upon interest rate
for an agreed-upon period of time (generally 30 to 60 days prior
to your home being completed and your loan closing). Some lenders
charge a fee for this service; KB Home Mortgage Company does not.
How long will it take to get approval?
It varies, so make sure you get an estimate of how long approval
will take, especially if you have a deadline for closing on a
new home.
Does the loan have a prepayment penalty?
If you even think there's a possibility you may pay off your loan
early (this includes refinancing) find out if there's a penalty
for doing so.
TOP
What documents will I need for my loan application?
When preparing your loan, your KB Home Mortgage loan counselor will ask you for documentation pertaining to your income (e.g., W-2s, pay stubs), your assets (e.g., bank account statements) and any debt or liabilities (e.g., divorce decree) you may have. Since every situation is different, the documentation you need depends on the loan program you select and your financial situation. Your loan counselor will tell you the specific documentation you will need. Standard requirement items include the following:
Personal information
- address and telephone number(s) of each borrower
- previous address(es) over the last seven years
- Social Security number(s) of all applicants
- age of applicant(s) and dependent(s)
- name and address of landlord(s) or lender(s) for the past two years and proof of payment
- current housing-expense details (rent, mortgage payments, taxes, insurance)
- pay stubs for the past 30 days
- W-2 forms for the past two years
If you're self-employed you'll need:
- complete, signed federal income tax returns for the past two years (personal and corporate)
- year-to-date profit and loss statement and balance sheet
If you receive Social Security, a pension, disability or VA benefits you'll need:
- a copy of your awards letter (or tax returns for the past two years)
- a copy of your most recent check
If you pay child support you'll need:
- a copy of the divorce or separation agreement
- evidence of payment for the last 6-12 months (cancelled checks of pay history from the courts)
Financing programs described in these materials are available only through KB Home Mortgage, which is a wholly owned subsidiary of KB Home. Homebuyers are not required to obtain financing from KB Home Mortgage, and may obtain financing from any lending institution.
What should I ask my lender?
Start with, "What type of loan is best for me?" If you've done some groundwork, you should have a pretty good idea of the type of loan you need. Lenders may offer options you haven't considered, or even something you haven't yet heard about.
Follow up with these important questions:
What will my closing costs be?
At closing, you'll be required to pay a number of fees such as
transfer of title, origination and appraisal, attorney services,
credit report, title insurance and inspections. Lenders are required
to provide an estimate of these costs to you within three days
after they receive your application, but you can always ask for
an estimate sooner.
Will I be charged points?
Sometimes you'll have to pay points (one point = 1% of the loan
amount) in order to "buy down" your interest rate. Before proceeding
with your loan application, find out if there are any points attached
to your loan.
What items must be prepaid?
Some expenses, such as the first year's property taxes and insurance,
must be paid at closing. Your
l oan counselor will let you know what's required.
How long will I be guaranteed the quoted interest rate?
This is called "locking in" a rate. When you apply for your loan,
your endery will lock in the agreed-upon interest rate
for an agreed-upon period of time (generally 30 to 60 days prior
to your home being completed and your loan closing). Some lenders
charge a fee for this service; KB Home Mortgage Company does not.
How long will it take to get approval?
It varies, so make sure you get an estimate of how long approval
will take, especially if you have a deadline for closing on a
new home.
Does the loan have a prepayment penalty?
If you even think there's a possibility you may pay off your loan
early (this includes refinancing) find out if there's a penalty
for doing so.
What documents will I need for my loan application?
When preparing your loan, your KB Home Mortgage loan counselor will ask you for documentation pertaining to your income (e.g., W-2s, pay stubs), your assets (e.g., bank account statements) and any debt or liabilities (e.g., divorce decree) you may have. Since every situation is different, the documentation you need depends on the loan program you select and your financial situation. Your loan counselor will tell you the specific documentation you will need. Standard requirement items include the following:
Personal information
- address and telephone number(s) of each borrower
- previous address(es) over the last seven years
- Social Security number(s) of all applicants
- age of applicant(s) and dependent(s)
- name and address of landlord(s) or lender(s) for the past two years and proof of payment
- current housing-expense details (rent, mortgage payments, taxes, insurance)
- pay stubs for the past 30 days
- W-2 forms for the past two years
If you're self-employed you'll need:
- complete, signed federal income tax returns for the past two years (personal and corporate)
- year-to-date profit and loss statement and balance sheet
If you receive Social Security, a pension, disability or VA benefits you'll need:
- a copy of your awards letter (or tax returns for the past two years)
- a copy of your most recent check
If you pay child support you'll need:
- a copy of the divorce or separation agreement
- evidence of payment for the last 6-12 months (cancelled checks of pay history from the courts)
Financing programs described in these materials are available only through KB Home Mortgage, which is a wholly owned subsidiary of KB Home. Homebuyers are not required to obtain financing from KB Home Mortgage, and may obtain financing from any lending institution.