Your contract offer has been accepted and signed, and now the real fun begins! Your next step is officially submitting a mortgage application with your chosen lender and getting the ball rolling on that. Here’s a quick guide to help make the process a little less overwhelming. Keep in mind that everyone’s experience is different, so this is by no means an exhaustive list. But it should give you a general idea of what to expect. Good luck!
What Information Does My Lender Need From Me?
Applying for a mortgage can feel a bit overwhelming, particularly if you’re wondering what you need to provide your lender. Don’t fret – what lenders are looking for isn’t overly complicated; they’ll need to know what sort of documents you’re providing such as income statements such as W2s or 1099s, bank statements, and other records. They look into your past credit history as well to see if you have declared bankruptcy, missed any types of payments, or defaulted on an old mortgage. This process typically takes about 30-60 days and is done to assess if you are eligible for the loan, verifying all the information provided. When in doubt, reach out to your lender and they should be able to help clarify any questions or concerns you may have regarding what else might be required from you. Each lender can be different on how many documents they need from you, so it’s always better to be safe and double check what they are looking for.Â
Remember to Keep Track of All Contract Deadlines
If financing is implicated in your real estate purchase, you must keep a close eye on all deadlines listed within the financing contingency. Typically, two important dates are agreed in the contract- the first is when you will submit your application. This is usually 3-5 days from contract acceptance. The second is when you receive your final loan approval, which signifies all conditions have been met and the funds can be transferred to the seller at settlement- this part of the process is what takes 30-60 days. Failing to adhere to these dates could result in further delays in closing on the property or potentially losing out on it altogether. Make sure you stay organized and keep track of these financing contract deadlines; this will reduce any potential headaches down the line! If for whatever reason you are unable to meet these agreements by the deadline, reach out to the seller ahead of time to discuss your options moving forward- either extending the deadlines or unfortunately breaking the contract.Â
Respond to Your Lender in a Timely Manner
The lender needs all of your paperwork and if you don’t stay on schedule and get your documents in right away, you could delay closing. A little promptness goes a long way, so make sure you stay on top of things. Be sure to stay communicative with your lender, and be ready to respond to their emails and requests in a timely fashion- they need the documents as soon as possible to process the loan efficiently. Taking longer than expected will only complicate the already complex process while potentially delaying closing — so stay on top of it!
Application Forms
Once you’ve found the perfect mortgage rate, it’s time to start filling out those application forms! Be sure to answer all questions truthfully and accurately – any mistakes could delay your loan approval process. The thrill of finding the perfect mortgage rate can seem like a relief, but don’t forget there’s still a lot of paperwork to take care of. When applying for a mortgage, accuracy can make all the difference – double-check each answer and make sure it matches up with your real life credentials. Otherwise you risk adding extra time to the already long loan approval process. Best rule of thumb? Take your time when filling out those forms, and you’ll ease through the last steps without any hiccups!
Applying for a Mortgage: Closing Thoughts
Applying for a mortgage doesn’t have to be a stressful event! By being prepared and knowing what information your lender will need from you, you can streamline the process and make it as smooth as possible. Remember to keep track of deadlines, respond to your lender promptly, and fill out all forms accurately – this way you’ll be one step closer to getting approved for the perfect mortgage rate.