FREQUENTLY ASKED FINANCING QUESTIONS
Q. How Long Does It Take to Process A Mortgage Application?
A. Usually about 45-60 days, although it can take as few as 30 days
and as long as 90 days for some 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.
Q. What Documents Will I Have To Provide?
A. 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.
Q. Could Anything Delay Approval Of My Loan?
A. 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 nonpayment 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.
Q. What Do The Closing Costs Include?
A. 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 impounds for property taxes,
hazard insurance and mortgage insurance.
Q. When Do My Mortgage Payments Start?
A. Usually about 30 days after closing. The actual date of your first payment
will be included in your closing documents.
Q. What's Included In My House Payment?
A. Principal and interest on your loan. Depending on the terms of your
loan, the payment also may include hazard insurance, mortgage insurance
and property taxes.
Q. Can I Pay Those Other Things Separately?
A. Not if it's an FHA-insured or VA loan. With most other loans, you can
pay your own taxes and insurance if you borrowed no more than 80 percent
of the purchase price or appraised value of your home. Check with your
lender to be sure.
More Questions? Please
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