Category Archives: Mortgage Broker

What You Need To Know To Apply For A Mortgage

You must apply for a mortgage because you finally decided to buy a new home, but what do you need to know before applying? What kinds of paperwork the lender will require of you? What type of information about personal history will the lender need? I strongly suggest you to visit Harbor View Funding-Mortgage Company to learn more about this. How long will it take to apply for the loan?

When you apply for a mortgage the lender may require many forms of financial paperwork. All items that may be requested are a copy of last year’s taxes, a current check stub, a bank statement, and a list of companies that you owe money to and the amounts due. These items are used to determine the credit risk to you.

Some personal information that will be needed for your application for a mortgage is history of residence. You’ll need to know the addresses for the locations you’ve been living over the past couple of years, the amount of time you’ve been there and if it’s a rented or owned location. You’ll also need to account for your history of employment. Lenders are looking for duration of employment and amount of pay to assess how much of a credit risk you are. Personal financial details such as spending patterns, any recent acquisitions of big ticket items, or whether you may include benefits such as alimony or child support in your available monthly income, might be asked. Finally, perhaps the lenders want to know what kinds of assets you have. Have you got an IRA, a car and/or a bank account? If necessary, what types of articles are available for collateral?

The approval process for a mortgage takes between one to eight weeks to be accepted or rejected depending on the type of mortgage that is being applied for. When a mortgage application is accepted, the payment of the mortgage takes 7 to 10 days unless there is any variance with the loan application. You should be given the list of closing costs within 3 days of applying for a loan, and should remain the same at closing. Make sure you look carefully at these prices, and make sure you understand each charge.

When choosing a lender, ask what percentage of credit is refused. A percentage of less than 10 per cent should be predicted. Find out what mortgage types your lender uses most regularly, too. What is the turnaround time for requesting a mortgage? The presumption is that a request will be accepted within a matter of hours, up to no more than eight weeks. Asking these questions beforehand should help you avoid “over-shopping,” which means you have contacted multiple quote lenders. — time a quote is given, it pulls your credit report and actually decreases your credit rating because it looks suspicious. You will not pull your credit report during a six-month period more than 2 or 3 times to avoid adversely impacting your credit score.