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Home Loan & Home Mortgage Article Series
Information
a Mortgage Lender Needs 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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SolveYourProblem.com : 2007
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