Home Loans In Springdale, Arkansas 

Welcome to Capital Home Mortgage Springdale. It is a one-of-a-kind industrial city. In addition to being the fourth-largest city in Arkansas, Springdale is home to the largest meat-producing company in the world. Springdale is also known for its hot, humid summers and mild to cool winters. 

According to recent reports, the real estate market in Springdale may be gearing up for a boom with the announcement of a new affordable housing project made possible through a public-private partnership with the city of Springdale. 

This is excellent news for you if you plan to move to this bustling city. Now you can move on to the next step in the homebuying process — securing a home loan.  Do you have what it takes to get a home loan in Springdale, Arkansas? Here’s what you need to know.

Basic Home Loan Requirements In Springdale

Requirements for a home loan involve proof of financial capacity and creditworthiness. Hence, you—as a borrower—are part of the requirements. Let’s go over the basic requirements:

• Identification

All borrowers are required to provide proof of identity. A valid photo id such as a driver’s license or passport satisfies this requirement.

• Proof of income

Lenders prefer borrowers with steady employment over the past two years. Proof of income would include your pay stubs, recent bank statements, and two years of W-2s. 

For self-employed individuals, the general requirements are two years’ worth of personal and business returns, the most recent income statement, and bank statements for the last three months.

• Assets

Anybody applying for a home loan must show where their source of funds to close on the loan will come from. The funds to close may come from their savings, checking, or retirement account. 

Besides the source of funds to close, a borrower must also provide liquid assets for “reserves.” One month reserve equals one month of the proposed total monthly mortgage expense. A typical rule of thumb is to have three to six (3 – 6) months of reserve depending upon the borrower’s credit score. 

• Acceptable Credit Score

Depending on what loan program you wish to get, all loan programs have a corresponding credit score requirement. Make sure you qualify for the home loan program based on your credit score.

Your credit report is a statement of credit activity and status. It contains your credit transactions and credit score. Loan underwriters use the credit report to examine your ability to pay your liabilities as they come due and how often you default or miss installment payments. 

Be wise with using credit cards and other credit facilities because they can significantly impact your credit score.

• Debt-to-Income Ratio

The debt-to-income ratio or DTI is the percentage of the monthly gross income you use to pay off your debts. Most lenders want the back-end ratio or the DTI that includes housing expenses and debts. The ideal DTI back-end ratio is 36% and below, which means that your proposed housing expense shall not exceed 36% of your gross monthly income.

Springdale, Arkansas Mortgage Lender

Our home mortgage experts at Capital Home Mortgage Springdale can help you find a home loan that suits your needs.

As direct mortgage lender, we control every aspect of the loan process, from pre-qualification to funding. As a result, we can offer competitive interest rates and flexible underwriting for faster true approvals. 

The Capital Home Mortgage team is committed to ensuring that your home buying experience is seamless. 

Find The Right Home Loan For You In Springdale

Your journey to becoming a homeowner in Springdale begins with getting a home loan with Capital Home Mortgage.

Contact us today at (501) 588-7399 to get started with a no-obligation quote. Our Springdale loan officers are also happy to walk you through the loan process so you know what to expect. We look forward to providing you with your next Springdale home loan.