 Q
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How long does it take to approve a mortgage application?
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A
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Usually about 2 to 3 days, although it can take as few as 1 day
and longer for high ratio transactions. The actual time depends
on how quickly the lender can get an appraisal of the property,
a credit report and verification of employment and bank accounts.
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Q |
What documents will I have to provide?
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A
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Be prepared to provide verification of income (including a pay
stub and/or recent tax returns), bank account numbers and details
on your long-term debt (credit cards, letter of employment, auto
loans, child support, etc.). If you're self-employed you may also
be required to provide financial statements for your business.
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Q
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Could anything delay approval of my mortgage?
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A
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If you provide the lender with complete, accurate information,
everything should go smoothly.
You may face a delay if the lender discovers credit problems -
a history of late payments or non-payment of debts, or a tax
lien. You may then be required to submit additional written
explanations or clarifications.
You should also be sure to notify your lender if your personal
or financial status changes between the time you submit an
application and the time it's funded. If you change jobs, get an
increase (or decrease) in salary, incur additional debt or change
your marital status, let the lender know promptly.
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Q
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When do my mortgage payments start?
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A
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Usually about 30 days after closing. The actual date of your
first payment will be included in your closing documents.
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Q
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What's included in my house payment?
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A
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Principal and interest on your loan. In some cases the lending
institution may require a monthly payment for hazard insurance,
mortgage life insurance and/or property taxes.
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Q
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Can I pay those other things separately?
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A
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With most mortgages, you can pay your own taxes and insurance
if you borrowed no more than 75% of the purchase price or
appraised value of your home. Check with your lender to be sure.
More questions?
Contact Elizabeth Peters .
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