Mortgage FAQ's
What information or documents are needed to apply for a loan?
- Employment History - Two year history including
names and addresses of each employer
- Proof of income – W-2 forms for the last
two years and pay stub-stubs for the last 30 days
- Asset Information – Complete bank statements
for the most recent two months showing account numbers and addresses
(All pages of statements)
- Retirement Plan – Latest statement for
401K, stocks, bonds, annuities
- Real Estate Owned – Addresses for other
real estate owned plus any rental agreements and mortgage information
- Renters – Names and addresses for all
the landlords in the last two years
- Tax Returns – Full tax returns for the
last two years if self-employed
- Proof of any judgment or collection statements
showing Paid-In-Full
- Homeowners Declaration Page - The detailed Declaration Page
from your Homeowners Insurance Policy.
- Bankruptcy Discharge Papers and Package
- Divorce Decree and Separation Agreement
What are points on a loan?
Consider this item as interest paid in advance. Many programs/borrowers
see interest rates increase when points are decreased. Most of the
time this interest is tax deductible. So view it as a pay now or pay
later scenario.
What sort of items are included in
closing costs?
Sale price of the home, loan origination fees, transfer taxes, property
taxes already paid by the owner for the current year, recordation
fees, credit report fee, interest owed, title insurance, attorney’s
fees, survey fees, homeowners insurance… there may be others
depending on the municipality or state jurisdiction.
I’ve never bought a home before how do I know what to get
in a homeowners policy?
Normally the same company that does your auto insurance also will
do homeowners policies so start with that agent. Ask for referrals
from people you know.
Do I have to take mortgage insurance coverage and what does it
do for me?
Generally speaking if you are financing a home with less than 20%
down you will be required by the lender to take mortgage insurance
protection. What this does is to insure that if you do not make
the payments as agreed upon the lender is not going to lose their
money even if they have to foreclose on the loan. This should not
be confused with a private life insurance plan that guarantees if
you die your family/spouse will not lose the home.
How long will it take till I know if I got the loan?
Normally you will be pre-qualified for the home. Until you actually
have a ratified contract in hand you don’t have a fully approved
loan. Remember that a lender makes the loan for a specific piece
of property, not a person as such. Generally speaking the process
typically takes about 45 days among lenders. Please realize that
also assumes all information contained in credit reports and documents/information
you provide is correct and up-to-date.
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