FAQs: Mortgage Applications

by Michael Tarallo 12/29/2019

If you’re a first-time buyer, odds are you’ve never seen or heard much about mortgage applications. However, for something as important as buying a home, it pays off to go into the process knowing what to expect.

Mortgage applications aren’t all that complicated in and of themselves. Most of the time, your chosen lender will walk you through the process and answer any questions that arise. However, complications do arise when it comes time to provide documentation on things like your income.

To make things easier for your first application, I’ve put together this list of frequently asked questions that first-time buyers often have about their mortgage application process.

Will applying for a mortgage hurt my credit score?

Mortgage lenders will run a credit inquiry to help determine your lending eligibility. There are two types of credit inquiries: hard and soft. A soft inquiry is a quick credit check that doesn’t affect your credit score. A hard inquiry, on the other hand, does. This means your score will be lowered slightly for a few months and then will bounce back.

Mortgage lenders run both types of inquiries. For quick, pre-qualifications, lenders typically run a soft inquiry. Then, as you progress through the approval process, they’re run a detailed credit report (hard inquiry).

What information should I have available?

Lenders will ask you for various documents. The most common things they will ask for include proof of income in the form of  W-2 forms from the previous year and your most recent pay stub. They will also require a record of your other debts, including student loans, auto loans, credit card debt, and any other outstanding debt that you owe. Finally, they will ask for an inventory of your assets. This could include investments, properties, auto titles, and more.

What if I don’t work a conventional job?

People who are self-employed or have unconventional income can still qualify for a loan and will still be required to show proof of income. Lenders may ask for Form 1099 records, tax returns, or any other record or proof of income you have available.

How long does it take to complete an application?

Mortgage applications can be completed as quickly as you gather the required documentation. However, there’s more to getting approved for a mortgage than filling out an application. There will be time needed to process the application, and underwrite your mortgage. This entire process typically takes between 30 and 45 days.

Is it safe to apply for a mortgage online?

Most lenders allow you to start the application process online and their online portals are typically secure. Make sure you check your browser window to ensure that the connection to the site is secured, and you should have nothing to worry about.

Keep in mind that most online applications are designed to get you  prequalified and on your way to getting a mortgage. So, if you want to avoid getting calls from the lender, you might not want to enter any data until you know you’re interested in borrowing at this time.


About the Author
Author

Michael Tarallo

MEET MICHAEL 

Michael Tarallo is the tenacious, confident real estate professional needed for today's complex real estate world. With his comprehensive understanding of people and the process he will guide and assist you with your sale, purchase or investment. An excellent negotiator and all-around business savvy determined to deliver results.

A former Mount Kisco and current Pound Ridge resident, Michael has extensive knowledge of the local towns of Mount Kisco, Bedford, Bedford Hills, Katonah and Pound Ridge as well as the surroundings areas from the Bronx, through Westchester, Putnam, and Dutchess counties.

NYS Licensed Associate Real Estate Broker, member of the National Association of Realtors® (NAR), the New York State Association of Realtors® (NYSAR), the Hudson Gateway Association of Realtors® (HGAR), the Hudson Gateway Multiple Listing Service (HGMLS) and the Mid-Hudson Multiple Listing Service (MHMLS).

A Pace University grad with a BBA in Marketing, Five Star Professional 2017-2019, Top Producer 2016-2019.

Michael is accessible, energetic and ready to serve your real estate needs.

Born and raised in the Bronx, he now currently resides in Pound Ridge with wife Christine and 2 children, Michael Jr. and Angela. Michael is also a volunteer at the Pound Ridge Ambulance Corps.