Waiting to Get Your Mortgage
Waiting to Get Your Mortgage:
What a Homeowner Can Do While They Wait
After applying for a mortgage, the mortgage company will verify the information you entered on the application and this process can take from one to six weeks. However, within three business days after completing the application, the mortgage company must provide a closing cost estimate. The closing is the actual settlement of the loan.
Although the wait for applicants can be excruciating, it is important to stay positive! Keep in touch with the mortgage company and stay prepared to answer any and all questions that they may have for you. You can speed the process up considerably by having information available if your mortgage company requests anything. This includes:
- Final purchase contract for the house, if applicable.
- For each applicant:
- Pay stubs that detail earnings for the last 30 days and year-to-date earnings
- Previous year’s W2 and 1099. If you’re self-employed, the mortgage company may require your personal and business tax returns for the previous two years and your company’s year-to-date Profit and Loss statement.
- Bank account information: Account numbers along with account statements for the past two months.
- Debt information: This includes loan and credit card account numbers and creditor names.
- Evidence of your mortgage or rental payments, such as canceled checks.
- An irrevocable gift letter if you are receiving a monetary gift from a relative.
As mortgage companies want to make loans, they are more likely to approve then they are to deny your application. The entire process can be confusing and intimidating, especially for first time homebuyers. Be sure to stay informed and ask questions of your mortgage company to enable you to understand what to expect at all steps throughout the process.