Loan Road Map: Stop #5 Applications and Disclosures
A mortgage application helps the lender decide how much money to lend the borrower. Here’s a breakdown of what’s included on the forms:
- Type of mortgage and terms. This section describes the loan, loan program and the terms to the loan.
- Property information and purpose of the loan. This section indicates the property to be purchased, who will own the property, who’s name will be on the title and indicate the amount the down payment will be.
- Borrower information. This section will indicate the borrower and co-borrower’s full names, birthdates, addresses, telephone numbers, Social Security numbers and more.
- Employment information. This section indicates the borrower’s employer information. A 2-year job history is typically required. Verification of employment is necessary.
- Monthly income and expenses. This section is used to determine how the borrower will be able to repay the mortgage back.
- Assets and liabilities. Assets include savings, checking, retirement and investment accounts. Liabilities include anything that shows up on a credit report: another mortgage loan, auto loan, school loans, alimony, child support, etc.
- Transaction details.
- Declarations. This section details if a borrower has experienced bankruptcy, foreclosure or a lawsuit.
Your Loan Officer will help you fill out the application. Don’t be afraid to ask questions and do your homework!
To learn more about Stop #4, click here.
To learn about Stop #3, click here.
To catch up on Stop #2, click here.
T read about Stop #1, click here.