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Mortgage Loan Process

Posted by  on Apr 16, 2009
 
If you are going through the process of the mortgage loan and looking into mortgage loans in the U.S., you should be familiar with the fact that mortgage loan application asks for information on the property, terms of the purchase contract, employment and financial history of all loan applicants, including your spouse and/or other co-borrowers. The mortgage lender will verify or not, to approve the loan, so it is very important to submit a complete and accurate application.

You can complete the loan application process easier if you prepare for it ahead of time. A great amount of detail will be asked about your personal finances, including bank account numbers and balances, current loan amounts, payments, and credit card account numbers. You will want to be thorough and precise in your answers. It will be to your benefit to assemble it this kind of information before the meeting with the loan officer. The following is a summary of information required on the loan application, documents you may need to provide and the questions you should be prepared to answer.

The loan officer will want the social security numbers of you and your spouse, age, number of years of schooling, your marital status, number and ages of dependents and your current address and telephone number. If you have lived at your current address less than 2 years, be prepared to furnish former addresses for up to seven years. You will also be asked to detail your current housing expenses, including rent or mortgage payments and your real estate taxes. You will need the name and address of your landlord(s) or mortgage lender(s) for the past two years.

Your ability to make the regular payments on the mortgage and to afford the costs associated with owning a home are primary considerations is the lender's loan approval process and should be your primary concern. Required information includes:
At least two years employment history with employer's name and address, your job title or position, length of time on the job, salary, bonuses, commissions and average overtime pay.
The loan officer may have you sign a Verification of Employment form. This will be sent to your employer to verify your employment and earnings. One will be sent to previous employers if you have been on the job less than two years. Many lenders now use a general authorization form, which allows them to verify employment and other financial information on the application.

If you are relying on income from other sources, such as rental property, social security or disability payments, child support, etc., you must provide adequate proof of the source. Appropriate documents could include canceled checks, copies of leases, certification of benefits, divorce decrees and similar evidence.

A detailed listing of your personal assets is required on the loan application form. You will need to have the following information available to complete the form:

All bank accounts, checking and savings, and money market accounts, with the name and address of the institution, name(s) on the accounts, account numbers and current account balances.

You will have to itemize all your current bills, loans and other debts, including current balances and monthly payments. Debts include automobile loans, credit cards such as Visa, Mastercard and other retail store accounts, finance company, bank and credit union loans and existing mortgages, including home equity loans. You should be able to give the account or loan number, the monthly payment, the number of payments remaining and the outstanding balance.

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