8 Things the
Mortgage Lender will want to know
Paperwork can be trying at even the best of times.
It can take tons of time to fill out loan applications
and you might ask yourself why they need such detailed
information? But you need to remember that this is one
of the biggest purchases you will ever make it your
life, and you should take the time to ensure that your
application is complete and accurate. Mistakes on your
mortgage application or agreement could be costly.
When applying for a loan, most lending institutions
and agencies have a standard or uniform residential
loan application. The information required is broken
down into several sections.
Type and Terms of Mortgage
Under this category you will select what type of mortgage
you are applying for. This section will also detail
important information like the amount being borrowed,
the interest rate and the length of the loan.
Property Information and Purpose of Loan
Here you will need to specify what the loan is for,
specifically what kind of property. Is it for the purchase
of an already built property or for construction or
for refinancing?
Borrower and Co-Borrower Information
In this section you will need to include your current
and previous address. If you have a co-borrower, you
will also need all of this information from him or her.
Employment Information
The institution or agency lending you money will want
to ensure that you are applied and will continue to
be employed for the foreseeable future. You need to
list your occupation, the contact information for your
current employer and the amount of time you have been
working at this job and in this profession. You will
also need to provide your monthly income. Your co-borrower
will also need to fill out this section and if you have
more than one job the lender needs the contact information
and salary for both of these employers.
Monthly Income and Expenses
You will need to provide the bank with a good idea of
your current financial situation. Part of that is figuring
out how much money you have coming and going out every
month. Under the income category you will need to include
your monthly salary, overtime, commissions and dividends
or interest credits you receive. Under expenses you
can your rest, taxes and insurance monthly costs.
Assets and Liabilities
Here you need to list any accounts and stocks and bonds
you have, as well as the name, address and account number
of anyone you owe money to.
Details of Transaction
This section lists all the amounts that apply to your
purchase transaction including purchase price, cost
of any alternations or repairs and your closing costs.
Declaration
You will need to declare (by checking “yes”
or “no”) certain facts about yourself. Be
careful and honest in this section – because when
you sign this application you are essentially guaranteeing
that all the information on it is correct. The questions
might touch on bankruptcy, alimony and child support
payments and involvement in lawsuits. If you lie in
this section, it could seriously jeopardize your chance
of getting money from any lend institution.
There are little details that you need to be on the
lookout for. Ensure that you sign everywhere that is
required and that the contact information you provide
for yourself and for your employer is complete and accurate.
You may also be required to initial certain places –
like the bottom of every page.
Here’s a good tip to keep in mind. You should
obtain two copies of your loan application so you have
one to practice on and then just copy all the correct
information onto the one you are going to submit. This
way you will not be frustrated if you get right to the
end and make a mistake and have to start all over again.
You have a practice copy and a good copy ready for submission
to your lending institution.
Remember that there are professionals who can you help
make this process easier for you. Consult your real
estate agent or your lawyer or lending institution directly
if you are unsure of something or have concerns about
some of the information required for your application.
Asking questions now could save valuable time later.
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