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If
you are getting a mortgage, your offer will
give you a deadline for submitting and application.
The will also be a commitment deadline, usually
2-3 weeks after the accepted offer.
Along with your mortgage application, you
will be required to submit additional documentation
regarding your finances. Some of the requested
items are: income, credit history, debts,
and assets. You will need W's, income tax
statements, bank statements, pay stubs and
other documents supporting your financial
history. The lender will look at look at your
financial situation and the appraised value
of the property you are buying.
It might feel like you are bearing your financial
soul, but the goal is to protect you and the
bank from taking on too much financial risk.
There are several pieces that must be considered.
If approved, your financial responsibilities
will include a monthly mortgage principal
payment, interest, and property taxes. Your
bill may also include private mortgage insurance
if you are financing more than 80% of the
appraised value. If you are buying a condominium,
you need to include your monthly condominium
fee. Without careful assessment, you could
find yourself in over your head.
If your lender has approved your loan, you
will receive a commitment letter. If have
not received a commitment letter, you should
consult your attorney about backing out of
the deal or asking the seller for an extension.
If you received your commitment, you need
to prepare
to close. |
