Mortgage Loan Application Tips

Loan applications are completed primarily four different ways:  over the phone, by mail, via the internet or in person.  Either method ends in the same result, with the submission of a completed application regarding the type of loan and a summary of your qualifications for that loan. The choice of how to complete your application for a mortgage is based on your preference.  Almost all mortgage applications, with the exception of home equity loans, use the uniform residential loan application, referred to the industry by its code number, 1003 (pronounced: 10, 0h, 3).  Before you complete the application make sure you have studied the varies loan programs available and review the general underwriting conditions needed to qualify for that type of loan.  Use the mortgage qualification calculator to double check the qualification requirements, employ the rate and term comparison mortgage calculators to investigate the loan types that fit your particular needs and of course the mortgage payment calculator to be sure you are secure with the monthly mortgage payment.  The mortgage application is designed to detail information about the applicant including their income, assets, and liabilities.

Here are a few steps to help prepare for your loan application and make sure that the home loan approval process progresses quickly:

Make sure you understand the loan features you are applying for including the monthly mortgage payment and any funds that are needed to close this loan.  Be sure to understand the down payment amount needed as well as the closing costs.  This helps avoid avoids misunderstanding with the lender later in the process along with unwanted surprises.  The comprehensive mortgage calculator will give a hand in pin pointing the down payment.  The closing cost comparison calculator will help to understand

Have information regarding the property address for the loan readily available, employment dates, phone numbers and addresses.  The more detail in the less intrusive aspects of the application the easier the job will be for the mortgage lender to process the loan request.

Be sure to have data regarding your assets and liabilities.  This means that you will need all the information on your bank accounts, investment accounts, credit cards, auto loans and any other debts.  Information needed is generally the account name or bank name, account number, existing balance and monthly payment on the debts. 

Make sure that there are no unintended blank spaces or omissions left on your application before you sign it.  The uniform residential loan application has space for a vast amount of information, not all information is necessary, but don’t leave spaces where the data is needed for your mortgage loan request.

If there are portions of the application you do not understand or don’t know the answer, quiz the mortgage lender.  It is there job to help you.  If they cannot answer your questions to your complete satisfaction, move on to another mortgage lender.

Communicate with the mortgage lender to make sure they know you have given all the data requested

If there is a delay it is far easier to get a handle on the issue when it was not caused by the applicants misunderstanding to failure to provide the proper data.  When the mortgage loan applicant provides the mortgage lender everything they requested, the ball is firmly in their court to close the loan.
The mortgage loan application will also require the submission of various supporting documents such as W-2’s and tax returns for the last two-years, bank statements for the last two months, pay stubs that cover a month of earnings and other supporting documents that may include other liability statements or asset statements.  Keep copies of all information supplied to the mortgage lender.

Don’t forget to do a great quantity of research before choosing the mortgage lender and submitting the application with the supporting documents.  Take care and be sure to set in motion the mortgage calculators in order to fully appreciate the terms of the loan and the process involved.  Once you find your lender, do not hesitate to give them all the financial information they need, the more data a lender has the easier the process is to verify the borrower’s income, debt, assets and credit profile.  Furnish the mortgage lender the details on assets, your income, your debt situation, and your job history.  After hand over all the information you are required to present, follow up with them, and make yourself accessible should they have questions.  Don’t be intimidated, remember this is your home loan request; you can control many aspects of the process and the mortgage company is there to serve you.

This entry was posted on Thursday, December 18th, 2008 at 8:07 am and is filed under Mortgage Basics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.