Frequently Asked Questions
How long is the mortgage application process?
It usually takes 45 to 60 days to process an application, although it can take as few as seven days and as long as 90 days for some transactions. The actual time depends on how quickly the lender can obtain a credit report, verification of employment and bank accounts, and an appraisal of the property.
What documents will I have to provide?
Be prepared to provide verification of income (including a pay stub and recent tax returns), bank account numbers and details on your long-term debt (credit cards, auto loans, child support, etc.). If you’re self-employed, you may also be required to provide financial statements for your business. In recent years, lenders have been required to obtain more specific information from borrowers in order to package and sell loans to investors.
Could anything delay approval of my loan?
If you provide the lender with complete, accurate information, everything should go smoothly. You may face a delay if the lender discovers credit problems or if personal or financial status changes have occurred between the time you submit an application and closing. There may also be delays associated with the appraisal.
What’s included in my house payment?
Principal and interest on your loan. Depending on the terms of your loan, the payment may also include hazard (homeowners) insurance, mortgage insurance and property taxes.
Can I pay those other things separately?
Not if it’s an FHA or VA-insured loan. With most other loans, you can pay your own taxes and insurance if you borrowed no more than 80% of the purchase price or appraised value of your home. Check with your lender to be sure.
What do the closing costs include?
Closing costs cover processing and administration of your loan. In addition to a loan fee, you’ll usually be asked to prepay interest charges to cover the partial month in which you close, and you may be required to deposit monies into an escrow account for property taxes, hazard insurance and mortgage insurance. These are called “Reserves”.
When do my mortgage payments start?
Usually about 45 to 60 days after closing. The actual date of your first payment will be included in your closing documents.
More Questions? Call or email me!