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Submitted by: Tabitha Naylor
Paperwork can be trying, at even the best of times. It can take a significant amount of time to fill out loan applications. You might even catch yourself wondering why a mortgage broker needs such a detailed amount of information. But, you need to remember that taking on the responsibility of a mortgage is one of the biggest expenditures you will ever have in your life. Because of this, 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 an accurate overview 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 many details 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.
About the Author: Tabitha Naylor is an experienced mortgage broker/consultant with Apex Financial Mortgage. For more information, or additional resources on home loans, visit
apexfinancialmortgage.com
Source:
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