How do you apply for a mortgage? First, assemble this information: Tax returns and bank statements for the past 2 years. W-2 forms for the past 2 years Pay stubs for the past 3 months Documentation of any long-term debts Proof of any non-payroll income When youre far enough in shopping for a home to make an offer, add these things: Address and description of the property A sales contract on the home Identify lenders and submit a loan application. If your credit is frozen, be prepared to unfreeze it for the credit history and credit-rating reports the lender will order. The lender will order an appraisal and (in some cases) possibly an inspection. Expect additional questions and clarifications as they go through the process of evaluating your ability to repay the loan. The process usually takes more than a week, and delays of up to 6 weeks arent uncommon. Be patient, and keep copies of everything.

A "home warranty" is frequently available at the time of purchase, and may even be a tool in negotiating terms. These warranties provide protection for a short period of time — like 1 year — against unexpected costs in home systems and appliances. A failed heater or oven, for example, might be covered by a home warranty. This financial protection in the period immediately after home purchase can be helpful, especially if down payment and closing have drained cash reserves. Home warranty may not be an option after purchase, so consider the benefits and costs prior to finalizing your deal.

The elevation of a home, in relation to surrounding terrain, directly affect the risks of flooding. Even a few feet of elevation can make a dramatic difference. If the home is on a "flood plain" — an area of land with inherent risk of flooding during high discharge — lenders will usually require flood insurance. If it is near but noton a flood plain, you may have options regarding flood insurance coverage. Flood insurance is covered through the National Flood Insurance Program. Check FloodSmart.gov for details, then shop insurance coverage for a policy that suits your needs.

Regulations require lenders to document the final terms of the loan, and to deliver the document – called the Closing Disclosure – at least 3 business days before scheduled loan consummation. The Closing Disclosure cannot be verbal; it must be a digital or paper document. Any changes after deliver of the Closing Disclosure start the clock again: a new Closing Disclosure must be delivered, at least 3 business days before a revised loan consummation date. In a few circumstances, waiver of the 3-day waiting period is possible, but only when this waiting period would trigger an authentic financial emergency.

When an eligible mortgage proceeds to close, lenders are required to deliver a Closing Disclosure form, at least 3 business days before loan consummation. This form details the actual transaction terms and costs to be committed at closing and consummation. The Closing Disclosure must be delivered in writing (digital or paper). The details of the disclosure are specified by Federal guidelines; only the details specified by the CFPB should be included. Should transaction terms or transaction costs change prior to loan consummation, an updated Closing Disclosure should be provided by the lender. This may change the loan consummation deadline in turn, requiring an additional 3-day waiting period, in some cases. Loan closing and loan consummation are not exactly the same thing; although they may occur at the same time in some US States, they are legally distinct. Loan Consummation: borrower becomes contractually obligated to the lender (but not necessarily the seller.) Closing: all parties have committed and signed the necessary documents. The 3-business-day period applies to the gap between delivery of the Closing Disclosure, and legal loan consummation. Lenders will have more information on the specific circumstances that apply to a given transaction in a given US State.

Lenders are required to store transaction records for a number of years. The period differs based on the documents. Escrow Cancellation: 2 years Partial Payment Policy Disclosures: 2 years Loan Estimates: 3 years after loan consummation Closing Disclosures: 5 years after loan consummation If the loan is sold — for example, to a different company for loan servicing — the original lender is only required to provide a copy of the Closing Disclosure to the new owner. Both companies must retain this information, for the remainder of the 5-year period. While digital record storage is common, it is not legally required. The guidelines set for lenders under the TRID regulations do not affect consumer behavior; consumers can keep disclosure records as long as they see fit. .

Regulations and disclosures for home mortgages and most other real-estate related loans do not apply to reverse mortgages, home-equity line of credit loans (HELOCs), or mobile home loans. Disclosures for these loan types require lenders to continue use of the Good Faith Estimate, Truth-In-Lending Disclosure and the HUD-1 form. In addition, the Loan Estimate and Closing Disclosure forms used for home mortgages are not required for housing assistance loans. These have separate regulations and forms; ask your lender for regulations, declarations and explanatory material.