FINANCIAL FAQs , CONTINUED Financing Your New Home
Q . What documents will I have to provide ?
A . 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 . Could anything delay approval of my loan ?
A . 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 .
Q . What ’ s included in my house payment ? A . 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 . Can I pay those other things separately ?
A . 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 . What do the closing costs include ?
A . 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 . When do my mortgage payments start ? A . Usually about 30 days after closing . The actual date of your first payment will be included in your closing documents .
You may also be delayed if the home you selected fails to appraise for the agreed purchase price .
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