- What is the difference between “Pre-Qualified” and “Pre-Approved”?
- What types of mortgage programs are offered?
- What documents will I have to provide?
- What could delay approval of my loan?
- How long does it take to process a mortgage application?
- What’s included in my house payment?
- Can I pay those other things separately?
- What do the closing costs include?
- When do my mortgage payments start?
Q. What is the difference between “Pre-Qualified” and “Pre-Approved”?
A pre-qualification consists of a discussion between a home buyer and a loan officer. The loan officer collects basic information regarding the customer’s income, monthly debts, credit history and assets, and then uses this information to calculate an estimated mortgage amount for the home buyer. The pre-qualification is not a full mortgage approval, but estimates what a home buyer can afford.
A pre-approval is the next step. An application will be taken and documentation regarding your finances will be required. This is the best way to determine your ability to obtain financing.
Q. What types of mortgage programs are offered?
Currently, there are numerous mortgage products available, including, but not limited to:
- Conventional, FHA, VA & USDA Products
- 97% Conventional Programs
- 100% VA Programs
- Adjustable Rate Programs
- No Closing Cost Options
- First-Time Homebuyer Programs
Q. What documents will I have to provide?
This is a general list to get you started, but follow the guidance of one of our licensed professionals for a more comprehensive list taking into account your specific situation.
- W-2s for the last two years
- Pay stubs for the last 30 days consecutively
- Bank statements from the last two months
- Self Employed?
- Tax returns for the last two years (both business & personal)
- Profit & Loss statemetns for the last two years
- Certificate of Eligibility
- Discharge Papers
Q. What could 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, such as a history of late payments or nonpayment of debts, or a tax lien. You may then be required to submit additional 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 is 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. How long does it take to process a mortgage application?
Usually about 45 days, although it can take as few as seven and as long as 90 for some transactions.
The actual time depends on the lender you choose, how quickly the appraisal can be done, items on your credit report, and verification of income and assets.
Q. 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 homeowners insurance, mortgage insurance and property taxes.
Q. 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.
Q. 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 impounds for property taxes, hazard insurance and mortgage insurance.
Q. When do my mortgage payments start?
Usually about 30 days after closing. The actual date of your first payment will be included in your closing documents.