Introduction Applying For Your Mortgage For many home buyers, the process of applying for their mortgage is one of the most stressful financial transactions they ever make. It seems your lender wants to know everything about you and your finances. And you worry something will not be "up to par." But if you know what to expect and what your lender is looking for you’ll find applying for your mortgage isn’t so bad after all. It’s still time-consuming, but there’s no reason for it to be difficult. This material will help you know what’s coming when you apply for the mortgage that could pay for the house of your dreams!

Table of Contents   Section 1: What to expect when you apply for your mortgage Section 2: Your application checklist Section 3: What happens after you’ve applied Section 4: What you can do after you’ve applied Section 5: Getting the word and what’s next Section 6: Glossary of terms

Section 5: Getting the News/What’s Next

Getting The Word And What’s Next
How you’ll learn whether your loan is approved and what happens next.

If your loan is approved, you’ll generally be notified by a letter of commitment although if your closing is scheduled to occur very soon after the approval is granted, you may get a verbal commitment instead of a letter.

Your commitment letter will include the terms of your mortgage, including the interest rate and points, and specify how long the terms are offered. If you settle on your loan within that time, the terms apply; if you don’t, the terms are subject to change.

In some circumstances, your commitment letter may also include additional information:

• If the loan is eligible for government insurance or guaranty, you’ll receive a written agreement from the appropriate government authority (FHA or VA).

• If your down payment is less than 20 percent of the total purchase price for a conventional mortgage, you’ll receive an application for the required private mortgage insurance.

Generally, you must accept the commitment letter by returning a signed copy to the lender within five to ten days; you may also have to pay some or all the origination fee at this time.

• Regardless of how you receive your commitment, you should make sure you understand all the terms and conditions completely. If you have any questions, ask your lender.

• If your loan is not approved, your lender must notify you within 30 days from acceptance of your completed application. This notification must also include the reason or reasons for the decision. If your loan request has been denied, make sure you understand why. Your lender can help explain what steps you can take to correct the problem, so you can reapply in the future.

The next steps...

Once you’ve received your loan commitment, the next step is to close your loan and buy your home.

Congratulations and good luck...you’re getting much closer to your new home!