How To Apply For A Home Loan And The Mortgage Application Process
(page 8 of 8)
What Happens In The Interim Before Your Mortgage Loan Request Is Finalized?
The actual time it takes to process your mortgage loan request is not definitive. Every home loan lender must submit the mortgage application to the underwriters and all of your data, credit reports, personal and employment information must be verified. If there are additional persons on the mortgage loan request this, too, can lengthen the time it may take to get a final determination of your loan request. Further, if you are applying for a mortgage loan in a new location, this too can cause further delay. You will not be the first person to make application so the mortgage lender should be able to give you an estimate of the time required relative to your personal circumstances.
Mortgage Lenders are required by law to provide you with a Good Faith Estimate and a Truth in Lending Disclosure within three days of accepting your application for revue. The estimate will cover all of the costs associated with your mortgage loan and in the disclosure document you will be apprised of the monthly payment schedule expected and what your annual percentage rate should be.
If and when your home loan application is approved the mortgage lender will usually send you a letter of commitment after the application has been submitted. It will detail all of the terms and conditions for your mortgage loan. You must sign and return this document to them as soon as possible. There will be quite a bit of detail, so be certain that you understand and agree to it all. If there is anything contained within the letter of commitment that you do not understand, or that may come as a surprise to you, be certain to contact the mortgage lender. Be certain that you understand it all before signing and returning the mortgage loan agreement.
The mortgage lender may choose to go over the commitment verbally, if this happens the same as above will apply. Be certain that you fully understand all that will be expected of you and the lender. Be certain, no matter what the form the commitment may take, to follow through on it as fast as possible to help enable your mortgage application.
After this last step in the process is completed you will have the financing needed to purchase the intended property. It is then up to you to complete the details of the commitment required for settlement.
Note: At all times during the mortgage application process make
certain that you understand all the requirements, that you submit true,
accurate and timely information and reports and that you are available
to the mortgage lender to facilitate any aspect of the application that may be
in question or require additional information on your part.
|
