Simplified Loan Process
Houston, TX
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Understanding the Loan Process with Ero Lending
At Ero Lending, we're committed to guiding you through every step of the loan process. Serving Houston and the surrounding areas, our team brings more than 29 years of experience to the table. We offer a comprehensive range of loan options, ensuring we can meet your unique financial needs.
Before diving into specific loan types, it’s helpful to understand how each option can fit into your long-term financial plan. For example, 20 year mortgages in Houston, TX can offer a balance between manageable monthly payments and faster payoff compared with a traditional 30-year term. We review your goals, income, and credit situation to match you with loans that best suit your needs.
Our services include:
- Conventional mortgages: These mortgages are ideal for borrowers with strong credit and stable income. Conventional loans offer flexibility in terms of payment schedules and interest options. For clients considering 20 year mortgages in Houston, TX, conventional loans can provide a reliable path to long-term savings while maintaining predictable monthly payments.
- FHA loans: FHA loans are designed for first-time buyers or those with limited credit history. These loans have lower down payment requirements, making them accessible to a wider range of buyers.
- VA loans: Available to eligible veterans and active-duty service members, VA loans offer competitive rates and require no down payment. These loans can also include favorable terms that reduce the overall cost of borrowing. Combining VA benefits with 20 year mortgages in Houston, TX often results in a manageable monthly payment while allowing faster equity growth.
- Refinancing options: Refinancing allows homeowners to lower interest rates, adjust loan terms, or access equity. Many clients consider refinancing to switch from a longer-term loan to a shorter term, which can significantly reduce total interest paid over time.
- Home equity loans: Home equity loans give clients access to funds using their home’s value as collateral. They are often used for renovations, debt consolidation, or major expenses. When paired with existing mortgages, these loans can help homeowners make improvements without overextending their monthly budget.
- Jumbo loans: Jumbo loans are for high-value properties exceeding conventional limits. These loans can have more flexible terms but require careful planning. Borrowers considering 20 year mortgages in Houston, TX with jumbo loans benefit from guidance to balance their payment schedule and total interest costs.
- First-time homebuyer programs: These programs are designed to simplify the homebuying journey for new buyers. They often include grant opportunities, down payment assistance, and credit-building resources.
As a locally owned mortgage company, we pride ourselves on our ability to work with all kinds of credit profiles. We don't turn anyone away, believing that everyone deserves a chance at homeownership. Contact Ero Lending today to start your journey toward securing the right loan for your needs.
Signs You're Ready to Navigate the Loan Process
Recognizing when you're prepared to embark on the loan process is crucial. Ero Lending is here to help you identify these signs and guide you through each stage.
Before you begin, it’s important to assess your readiness. Homeownership or refinancing is a long-term commitment, and being financially prepared can make the process smoother. Many clients considering 20 year mortgages in Houston, TX find that having stable employment, improved credit, and savings for a down payment positions them for success.
Here are some indicators that you might be ready to start your loan journey:
- Stable employment and income
- Improved credit score
- Sufficient savings for a down payment
- Clear financial goals
- Understanding of different loan types
- Realistic expectations of the housing market
- Desire for homeownership or refinancing
Understanding your options is also key. Familiarity with conventional, FHA, VA, and jumbo loans helps you make informed decisions and set realistic expectations. Evaluating these factors ensures you enter the loan process with confidence and a clear plan.
The Importance of Professional Guidance in Your Loan Journey
Navigating the loan process can be complex, which is why professional guidance is invaluable. Ero Lending offers expertise that can make a significant difference in your loan journey.
Professional guidance helps simplify a process that can otherwise feel overwhelming. At Ero Lending, we provide detailed explanations of loan types, interest rates, and repayment options, ensuring you feel confident in your decisions. For borrowers considering 20 year mortgages in Houston, TX, our team can analyze the long-term financial impact and help you weigh it against alternative loan terms.
Here's why our assistance is crucial:
- Access to a variety of loan options
- Personalized advice based on your financial situation
- Assistance with paperwork and documentation
- Negotiation with lenders on your behalf
- Explanation of complex terms and conditions
- Guidance through credit challenges
- Support throughout the entire process
Beyond paperwork, our team serves as a trusted partner. We help troubleshoot potential challenges, explain industry jargon, and advocate for you with lenders. This ensures a smoother experience from pre-approval to closing.
Advantages of Choosing Ero Lending for Your Loan Needs
Selecting Ero Lending as your mortgage company comes with numerous benefits. Our commitment to client success and our extensive industry experience set us apart.
We take pride in our local knowledge of Houston and surrounding areas, which allows us to provide insights specific to the housing market. Clients looking at 20 year mortgages in Houston, TX benefit from our understanding of neighborhood trends, lending standards, and property values.
Here are some key advantages of partnering with us:
- More than 29 years of industry expertise
- Inclusive approach to all credit types
- Strong partnerships with various lenders
- Comprehensive range of loan products
- Personalized, one-on-one service
- Local knowledge of Houston and surrounding areas
- Commitment to finding the right loan for each client
Our team is dedicated to helping you navigate your loan journey with confidence. We combine experience, authority, and personalized attention to deliver a level of service that sets us apart from other lenders. Whether you are refinancing or buying your first home, Ero Lending ensures your goals remain the focus throughout the process.
Start Your Loan Journey with Ero Lending Today
Your path to securing the right loan begins with a conversation. At Ero Lending, we're ready to listen to your needs, answer your questions, and provide the expert guidance you deserve. Whether you're a first-time homebuyer, looking to refinance, or exploring other loan options, our team is here to support you every step of the way. Reach out to us and let us help you achieve your financial goals.
Our Loan Process
1) Find Out How Much Your Can Borrow
The first step in obtaining a loan is to determine how much money you can borrow. In case of buying a home, you should determine how much home you can afford even before you begin looking. By answering a few simple questions, we will calculate your buying power, based on standard lender guidelines.
You may also elect to get pre-approved for a loan which requires verification of your income, credit, assets, and liabilities. It is recommended that you get pre-approved before you start looking for your new house so you:
- Look for properties within your range.
- Be in a better position when negotiating with the seller (seller knows your loan is already approved).
- Close your loan quicker
More on Pre-Qualification
- LTV and Debt-to-Income Ratios
- FICO™ Credit Score
- Self Employed Borrower
- Source of down payment
LTV and Debt-to-Income Ratios
LTV or Loan-To-Value ratio is the maximum amount of exposure that a lender is willing to accept in financing your purchase. Lenders are usually prepared to lend a higher percentage of the value, even up to 100%, to creditworthy borrowers. Another consideration in approving the maximum amount of loan for a particular borrower is the ratio of monthly debt payments (such as auto and personal loans) to income. Rule of thumb states that your monthly mortgage payments should not exceed one-third of your gross monthly income. Therefore, borrowers with high debt-to-income ratio need to pay a higher down payment in order to qualify for a lower LTV ratio.
FICO™ Credit Score
FICO™ Credit Scores are widely used by almost all types of lenders in their credit decision. It is a quantified measure of the creditworthiness of an individual, which is derived from mathematical models developed by Fair Isaac and Company in San Rafael, California. FICO™ scores reflect the credit risk of the individual in comparison with that of the general population. It is based on a number of factors including past payment history, a total amount of borrowing, length of credit history, search for new credit, and type of credit established. When you begin shopping around for a new credit card or a loan, every time a lender runs your credit report it adversely affects your credit score. It is, therefore, advisable that you authorize the lender/broker to run your credit report only after you have chosen to apply for a loan through them.
Self Employed Borrowers
Self-employed individuals often find that there are greater hurdles to borrowing for them than an employed person. For many conventional lenders, the problem with lending to the self-employed person is documenting an applicant's income. Applicants with jobs can provide lenders with pay stubs, and lenders can verify the information through their employer. In the absence of such verifiable employment records, lenders rely on income tax returns, which they typically require for two years.
Source of Down Payment
Lenders expect borrowers to come up with sufficient cash for the down payment and other fees payable by the borrower at the time of funding the loan. Generally, down payment requirements are made with funds the borrowers have saved. If a borrower does not have the required down payment they may receive “gift funds” from an acceptable donor with a signed letter stating that the gifted funds do not have to be paid back.
2) Select the Right Loan Program
Home loans come in many shapes and sizes. Deciding which loan makes the most sense for your financial situation and goals means understanding the benefits of each. Whether you are buying a home or refinancing we recommend using a fixed rate mortgage
Fixed Rate Mortgage
Fixed rate mortgages usually have terms lasting 15 or 30 years. Throughout those years, the interest rate and monthly payments remain the same. You would select this type of loan when you:
- Plan to live in home more than seven years
- Like the stability of a fixed principal/interest payment
- Don't want to run the risk of future monthly payment increases
- Think your income and spending will stay the same
3) Apply For a Loan
4) Begin Loan Processing
Although lenders conform to standards set by government agencies, loan approval guidelines vary depending on the terms of each loan. In general, approval is based on two factors: your ability and willingness to repay the loan and the value of the property.
Once your loan application has been received we will start the loan approval process immediately. Your loan processor will verify all of the information you have given. If any discrepancies are found, either the processor or your loan officer will troubleshoot to straighten them out. This information includes:
Income/Employment Check
Is your income sufficient to cover monthly payments? Industry guidelines are used to evaluate your income and your debts.
Credit Check
What is your ability to repay debts when due? Your credit report is reviewed to determine the type and terms of previous loans. Any lapses or delays in payment are considered and must be explained.
Asset Evaluation
Do you have the funds necessary to make the down payment and pay closing costs? For closing cost always estimate 2-5% of the loan amount you are looking for.
Property Appraisal
Is there sufficient value in the property? The property is appraised to determine market value. Location and zoning play a part in the evaluation.
Other Documentation
In some cases, additional documentation might be required before making a final determination regarding your loan approval.
In order to improve your chances of getting a loan approval:
Fill out your loan application completely. You may use our online forms to expedite the process.
Respond promptly to any requests for additional documentation especially if your rate is locked or if your loan is to close by a certain date.
Do not move money into or from your bank accounts without a paper trail. If you are receiving money from friends, family or other relatives, please prepare a gift letter and contact us.
Do not make any major purchases until your loan is closed. Purchases cause your debts to increase and might have an adverse effect on your current application.
Do not go out of town around your loan's closing date. If you plan to be out of town, you may want to sign a Power of Attorney.
5) Close Your Loan
After your loan is approved, you are ready to sign the final loan documents. You must review the documents prior to signing and make sure that the interest rate and loan terms are what you were promised. Also, verify that the name and address on the loan documents are accurate. The signing normally takes place in front of a notary public.
There are also several fees associated with obtaining a mortgage and transferring property ownership which you will be expected to pay at closing. Bring a cashiers check for the down payment and closing costs if required. Personal checks are normally not accepted. You also will need to show your homeowner's insurance policy, and any other requirements such as flood insurance, plus proof of payment.
Your loan will normally close shortly after you have signed the loan documents. On owner occupied refinance loan transactions federal law requires that you have three days to review the documents before your loan transaction can close.
