PRESTIGE PROPERTY SPECIALISTS
Kellee H. Smith, PRESTIGE PROPERTY SPECIALISTSPhone: (386) 603-2378
Email: [email protected]

Answers to Frequently Asked Questions About Mortgage Applications

by Kellee H. Smith 10/07/2018

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

Kellee H. Smith

  

Kellee H Smith (ABR,CRS)

Broker / Owner

Kellee Smith was born in Atlanta Georgia. Her father worked for the FAA and the family moved around Florida and Georgia before settling in DeLand Florida in 1977. She attended St Peter’s Catholic School, DeLand Jr. High and graduated from DeLand High School in 1983. She received her AA degree from Brevard College, in Brevard North Carolina. She transferred to Florida State University where she received her BS degree in 1988. 

Kellee obtained her real estate license in 2000, while living in Atlanta and working for REMAX until starting her own brokerage in 2011. Kellee moved back to her hometown in 2015 with a goal of helping her parents leave a legacy by growing the family real estate company, Prestige Property Specialists. Her parents started Prestige Property Specialists in 1988. The company specializes in residential, commercial and property management. She is passionate about ethics and education in the real estate industry. It is more than just a business, it is a true legacy for her family. Kellee maintains the highest professional standards for her clients and the agents at Prestige Property Specialists. She earned the Certified Residential Specialist (CRS) designation, which is the highest credential awarded to residential sales agents, managers and brokers. The brokerage is growing and her team of agents are looking forward to some exciting changes in 2019. 

Kellee is also passionate about recycling. She was instrumental in assisting the DeLand Breakfast Rotary and the City of DeLand in retrofitting the downtown garbage bins to include recycling receptacles. During the recycling project, she recruited sponsors and constructed a recycling mascot, which the DeLand residents helped name, “Skip D. Landfill”.

Kellee is active in her community by serving as Secretary of the DeLand Breakfast Rotary, Treasurer of Trails West Oakwood HOA, and is a member of the DeLand Area Chamber of Commerce, MainStreet DeLand Association, West Volusia Association of Realtors, DeLand Tennis Club and St Peter’s Catholic Church, Board of Directors of the DeLand Area Chamber of Commerce & Orange City Alliance. 

Kellee’s hobbies include: tennis, camping, traveling and mostly, spending time with her two adult children, family and friends.