Below is a list of documents that are required when you apply for a mortgage. However, every situation is unique and you may be required to provide additional documentation. So, if you are asked for more information, be cooperative and provide the information requested as soon as possible. It will help speed up the application process.
· Employment letter confirming salary
· If self-employed, Company Financial Statements for a minimum of 2 years
· Certified copy of passport
· Offer to purchase
· Proof of funds for deposit (or confirmation deposit has been paid) and closing costs
· Valuation Report
· Proof of Address
· Fire and hurricane insurance
· Work Permit (if applicable)
· Bank Reference (if applicable)
· Life Insurance (if applicable)
A valuation is an estimate of a property's fair market value. It's a document generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. The valuation is performed by an "Appraiser" who is trained to render expert opinions concerning property values, its location, amenities, and physical conditions.
The property is officially transferred from the seller to you at "Closing" or "Funding".
At closing, the ownership of the property is officially transferred from the seller to you. This may involve you, the seller, real estate agents, your attorney, the lender's attorney, secretaries, and other staff. Most closings are now done "behind the scenes" with purchasers and sellers signing documents with their attorneys separately who then arrange for the transfer of documents and funds. At this point the funds will be delivered to the seller and
Prior to closing you should have a final inspection, or "walk-through" to insure requested repairs were performed, and items agreed to remain with the house are there such as drapes, lighting fixtures, etc.
In most cases the settlement is completed by the attorney's in which you forward all materials and information plus the appropriate cashier's checks so the firm can make the necessary disbursement. Your representative will deliver the check to the seller, and then give the keys to you.
It's generally a good time to refinance when mortgage rates are 2% lower than the current rate on your loan. It may be a viable option even if the interest rate difference is only 1% or less. Any reduction can trim your monthly mortgage payments. Example: Your payment, excluding taxes and insurance, would be about $770 on a $100,000 loan at 8.5%; if the rate were lowered to 7.5%, your payment would then be $700, now you're saving $70 per month. Your savings depends on your income, budget, loan amount, and interest rate changes. Your trusted lender can help you calculate your options.
