Can I apply for new credit while my mortgage application is being processed?
Most everyone knows that opening up new credit accounts can potentially disqualify someone from the mortgage they are seeking, but many people don’t realize that even having your credit report accessed by a creditor can also lead to a possible disqualification on their mortgage application as well. This is due to the credit score reduction that occurs when a new creditor accesses your credit report. Otherwise known as a credit “inquiry” the action of accessing your credit report will lower your credit scores by 5 to 7 points. This may not seem like much but if your credit scores drops just below the milestone scores that are set in every 20 point increments you could be reclassified in terms of your mortgage approval or you could cause your interest rate to increase because interest rates are based on these same credit score milestones.
I have more than one bank account and I transfer money between them, will this impact my mortgage application?
Mortgage underwriting guidelines are very particular about sourcing all deposits that go in and out of your back accounts. So when funds are transferred from one account to another the underwriter must trace those transfers. This can be difficult at times and the underwriter is often forced to get the borrowers help with documenting these transfers. So if you want to keep your mortgage process as simple as possible you should refrain from transferring funds from one bank account to the other unless it’s absolutely necessary and you have a good paper trail of the transfer.
When will I hear from the appraiser?
On a refinance you should be contacted by one of our appraisers within 3 to 4 days of your application date. On a purchase of an existing home this same rule applies. However, on a purchase of a newly constructed home we may need to take your application several months prior to the expected closing date and ordering your appraisal this far out really doesn’t make sense. So for newly constructed home purchases you should hear from the appraiser once we are about 60 to 75 days from your closing.
What should do if my auto lease comes due during the mortgage process?
Having an automobile is a necessity and sometimes we need to either turn in our current vehicle that has an expiring lease or we come across an opportunity to trade in our existing vehicle and purchase a new one. Either way this can present a mortgage underwriting challenge so we ask that you coordinate these transactions with your mortgage banker who can make sure the new payment is acceptable and that the transaction is properly documented. It is completely unadvisable to attempt any other financial transactions except an automobile exchange.
Can I change employers if I get a better job opportunity?
The short answer to this question is No. However, if you are contemplating a change because your income will increase we may be able to work through this with you. It is very important to let your mortgage banker know if a new employment opportunity is being considered in advance of your acceptance. Some income types have to have a history of being earned and although your new employment opportunity may seem to have a higher earnings potential it may not based on mortgage underwriting guidelines.
How long will it take to process and close my refinance transaction?
Typically it takes about 30 days from application date to closing date on a mortgage refinance transaction. However, sometimes unexpected hurdles are encountered and this can add some time onto our process.
How long will it take to process my purchase transaction?
Typically it takes about 30 days from application date to closing date on a mortgage refinance transaction. However, sometimes unexpected hurdles are encountered and this can add some time onto our process. For purchase transactions involving newly constructed homes the timeline is a little longer but only by a few days or so.
Will I get to read my closing documents prior to my closing date?
Unlike virtually every other lender, we believe that you should NEVER see your closing documents for the first time once you actually arrive at your closing. At Homesite Mortgage we plan on delivering to you a sample closing package at least a week prior to your closing, and we plan on delivering to you your actual mortgage document, your Note and your final closing statement at least 24 hours prior to your closing! You should never see these extremely important documents for the first time on closing day.
Will my appraisal be the only item charged on my credit card?
Yes, we will only use your credit card to pay the appraiser for the initial appraisal report and any required reinspection costs. All of your other mortgage closing cost will be paid at your final closing.
How long are my income and asset statements good for?
Typically your income and asset statements (i.e. paystubs and bank statements) are valid for at least 30 days and some are valid for up to 45 days from your closing date. This makes it possible to collect all necessary income and asset documents from you a full month prior to your closing and that makes for a nice smooth landing!