What You Need to Know About Lending

Financing shapes everything about your search, so it's worth understanding before you fall in love with a house.

Pre-qualification vs. pre-approval

A pre-qualification is a quick estimate based on what you tell a lender. A pre-approval means they've reviewed your income, assets, and credit. In a competitive situation, the pre-approval is the one that counts. Some lenders offer a fully underwritten approval, which is stronger still.

What we look for in a lender

Beyond a competitive rate, we want local knowledge, great communication, and creativity: someone who'll pick up the phone on a weekend to get you a pre-approval letter, or keep looking for the loan option that actually fits. We're happy to recommend lenders we've worked with; you're never required to use them, and we aren't paid if you do.

Loan types you'll hear about

Conventional loans are the most common. FHA allows lower down payments with mortgage insurance. VA loans serve eligible veterans and service members, which matters around Fairchild. USDA covers some rural areas outside Spokane. Jumbo loans come into play above the conforming limit, which changes yearly.

Down payments

Twenty percent isn't required. Plenty of buyers close with three to five percent down and carry mortgage insurance until they have enough equity. Washington and Idaho both have down payment assistance programs with income limits that change, so ask your lender what's available now.

Documents to gather

Two years of employment history and W-2s, a recent pay stub, proof of any other income, bank statements and account details, and tax returns plus a year-to-date profit and loss if you're self-employed. Veterans will need a Certificate of Eligibility and DD-214.

Eleven things not to do before closing

Your lender re-checks everything right before closing, so until the keys are in your hand, don't:

• Change jobs, become self-employed, or quit
• Buy a car, truck, boat, or other vehicle
• Spend money set aside for closing
• Leave debts off your loan application
• Run up credit cards or fall behind on accounts
• Buy furniture on credit
• Let anyone pull your credit, including credit-score apps
• Change banks or accounts
• Co-sign a loan for someone else
• Change your marital status
• Make large deposits without talking to your loan officer first

This is general information, not lending advice. Your lender is the one who can tell you what you qualify for.