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Q
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What is the typical information needed for a loan? |
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A
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- Copy of your state-issued driver’s license
- Most recent ONE full month’s pay stubs
- Most recent TWO years W-2’s
- Most recent THREE month’s bank statements (all pages, including backs)
- Residence addresses for the past TWO years (landlord information if renting)
- Addresses and loan information on real estate owned
- Names, addresses, account numbers, balances and monthly payments on all open loans or credit cards
- If self-employed, see your Loan Officer for specific requirements
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Q
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How long will it take to get my new mortgage? |
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A
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From the date of application, your loan will probably close within three to five weeks.
Once you have applied we must order your credit report, preliminary title report, appraisal, and verifications of income and assets. After we receive all of those items back, we submit the loan for approval. After approval, loan documents are ordered and sent to the escrow company for you to sign. If the transaction is a refinance, there is also a three day right of recission period between the time you sign your loan documents and when your loan is funded.
In certain cases where it is necessary to meet a close of escrow date, we can close a loan in ten days, from application to funding.
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Q
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How much does a point cost? |
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A
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A point is one percent of the loan amount. For a $100,000 loan, one point equals $1000. A point is the same as a 1% origination fee.
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Q
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Why do I have to sign so much paperwork when I apply for a loan? |
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Nearly everything you sign at the time of application is designed to inform you of your rights as a borrower, or about details of your particular loan in order to protect the lender and you, the consumer.
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Q
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What is mortgage insurance? |
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A
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Mortgage insurance, (MI), insures the lender that in the event you stop making payments, that the loss will be covered if you have less than 20% equity in the home.
Mortgage insurance may be through the FHA, the VA or through a private mortgage insurance company. There are also many types of mortgage insurance ranging from monthly premiums to financed MI. Your loan officer can help you decide which is the best program for you. |
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