Applying for a mortgage loan can be stressful. For most of us a design studio is the biggest purchase we will ever make. There is lots of paperwork to be collected and forms to fill out Then there’s the additional stress of waiting to hear if your loan has been approved.
When you submit your mortgage loan application and the associated paperwork relating to your finances it will take a period of time for the lending company to review it. The reason for the time lag is that they are closely reviewing your financial history and making sure that everything appears in order. The application will be submitted by the lender to an underwriter. They will have the final word on whether the loan is approved or not. They will also look at the property to assess whether it will keep it’s value.
Often during this stage you will be asked for more information relating to your financial history. This is quite common especially as lending institutions these days are much stricter about giving out loans. Its also a good sign as they are looking to approve you! You should receive a good faith estimate within three days.
The underwriter will often enter some conditions that have to be cleared up before the loan is given. It is important that you treat the conditions with the utmost haste as it can really slow down the loan process. They often look for proof of where your money came from, letters verifying employment, your employment history — there are many additional items that they may look at.
This may involve things like a Verification of Employment, a statement from your bank that the funds on your bank statement are still in the bank or proof of where those funds came from. So be prepared to submit much more paperwork than originally advises.
Learn more about mortgages and other personal finance matters at www.moneymutualcomplaints.com.
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