Homebuying Basics - Coldwell Banker Real Estate Group - Manual / Resource - Page 22
Commonly
Discussed
Topics
There are many types of mortgages, and
Delays could result if the lender discovers credit
choosing the right one for you is an important
problems or if your employment and/or financial
decision. Below lists several programs,
status changes between the time you submitted
but talk to a local mortgage professional
an application and the final loan approval. There
to see which program is right for you.
may also be a delay if the home you selected
15, 20 or 30-year Fixed Rate loans
Adjustable Rate Mortgage (ARM)
New Construction financing
VA and FHA loans
It typically takes 45 to 60 days to process
an application. The time depends on how
quickly the lender can get an appraisal of the
property, review your financial statements,
employment and credit information.
Depending on the terms of your loan, the payment
may also include homeowner’s insurance,
mortgage insurance and property taxes.
appraises for less than the agreed purchase price.
With most loans you can pay taxes and insurance
separately 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.
Closing costs cover processing and
administration of your loan. You may also have
to prepay interest charges to cover the partial
month in which you close and deposit money
into an escrow account for property taxes,
homeowner’s and mortgage insurance.