Coldwell Banker Residential Brokerage Home Buyers Guidebook - 2017 - Page 17

FINANCIAL FAQs, CONTINUED Financing Your New Home Q. A. What documents will I have to provide? Be prepared to provide verification of income (including a pay stub and recent tax returns), bank account numbers and details on your long-term debt (credit cards, auto loans, child support, etc.). If you’re self-employed, you may also be required to provide financial statements for your business. Q. A. Could anything delay approval of my loan? If you provide the lender with complete, accurate information, everything should go smoothly. You may face a delay if the lender discovers credit problems, such as a history of late payments or nonpayment of debts, or a tax lien. You may then be required to submit additional explanations or clarifications. Be sure to notify your lender if your personal or financial status changes between the time you submit an application and the time it is funded. If you change jobs, get an increase (or decrease) in salary, incur additional debt or change your marital status, let the lender know promptly. You may also be delayed if the home you selected fails to appraise for the agreed purchase price. Q. A. What’s included in my house payment? Principal and interest on your loan. Depending on the terms of your loan, the payment may also include homeowners insurance, mortgage insurance and property taxes. Q. A. Can I pay those other things separately? Not if it’s an FHA or VA-insured loan. With most other loans, you can pay your own taxes and insurance if you borrowed no more than 80% of the purchase price or appraised value of your home. Check with your lender to be sure. Q. A. What do the closing costs include? Closing costs cover processing and administration of your loan. In addition to a loan fee, you’ll usually be asked to prepay interest charges, to cover the partial month in which you close, and impounds for property taxes, hazard insurance and mortgage insurance. Q. A. When do my mortgage payments start? Usually about 30 days after closing. The actual date of your first payment will be included in your closing documents. ©2017 Coldwell Banker Residential Real Estate LLC. All Rights Reserved. Coldwell Banker Residential Brokerage fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Operated by a subsidiary of NRT LLC. Coldwell Banker and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor sales associates and are not employees of Coldwell Banker Residential Brokerage. 17