Mortgage Information Financing Questions and Answers We've put together a list of some of the most commonly asked questions about home financing. This section answers questions such as the amount of time it takes to process a mortgage application, what's included in your payments, and closing costs to name a few. We would be glad to answer any questions you may have regarding financing. Please do not hesitate to give us a call! How long does it take to process a mortgage application? It usually takes about 45 to 60 days to process an application, although it can take as few as seven days and as long as 90 days for some transactions. The actual time depends on how quickly the lender can get an appraisal of the property, a credit report, and verification of employment and bank accounts. 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. Could anything delay approval of my loan? If you provide the lender with complete and accurate information, everything should go smoothly. You may face a delay if the lender discovers credit problems - a history of late payments, nonpayment of debts, or a tax lien. You may then be required to submit additional explanations or clarifications. You should also be sure to notify your lender if there are any changes in your personal or financial status between the time you submit an application and the time your loan is funded. What is included in my house payment? Your monthly house payment will include payments toward the principal balance of the loan and interest on your loan. Depending on the terms of your loan, the payment also may include hazard (homeowners) insurance, hurricane insurance, mortgage insurance and property taxes. Can I pay those other items separately? No, they cannot be paid separately if the loan is 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 percent of the purchase price or appraised value of your home. Check with your lender to be sure. What do the closing costs include? Closing costs for the loan cover fees related to the 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 prepay impounds for property taxes, hazard insurance and mortgage insurance, if any. When do my mortgage payments start? Mortgage payments usually begin about 30 days after closing. The actual date of your first payment will be included in your closing documents