A mortgage application is one of the first steps in obtaining financing for a real estate purchase. It is a detailed document, providing personal information about the mortgage applicant, income information, employment history, credit information, and information about the applicant’s assets and liabilities. Often, it is done before the potential buyer begins searching for a home to purchase. When this is done, the buyer seeks pre-approval for a mortgage.
The information requested can be detailed, so it is best to be as accurate and as thorough as possible. The decision of whether or not to grant a mortgage will be based, in large part, on the information provided in the application. Additional documentation is usually required to verify this information. Completing the application with the assistance of an experienced and knowledgeable mortgage professional is recommended in many cases.
METHODS OF COMPLETING A MORTGAGE APPLICATION
Office visits – With modern technologies, a mortgage application can be completed in a number of ways. The buyer can visit with the lender or broker in person and complete a paper application or electronic application. Or, the buyer may download an application and complete it prior to meeting.
Telephone – Applications can be taken over the phone with the assistance of a Licensed Mortgage Broker. It will then be printed and submitted for review.
Online Application – Recently, it has become popular for mortgage applications to be submitted online, followed by a phone call from a mortgage professional in the mortgage broker’s office, who can walk them through the remainder of the process, and answer any questions they may have.
CONTENTS OF A MORTGAGE APPLICATION
Some of the highlights of the mortgage information are listed below:
Personal information – Name, address, date of birth, marital status, length of time at present address, whether you own or rent your residence are some of the questions;
Employment information – You will be asked your present employer, how long employed, job title, salary information, other sources of income;
Assets and liabilities – You will be asked to provide information on real estate, bank accounts, retirement accounts and other assets you own, as well as your liabilities, including credit cards, other mortgages, rent, monthly payments of your liabilities.
Current information of real estate owned – If you own real estate, you will be asked about its current value, taxes, the name of any mortgage holder, the balance of the mortgage and monthly payment information.
Purpose of the mortgage loan – You will be asked whether this loan is for the purchase of real estate, a refinance of a mortgage, a second mortgage, a line of credit, a construction loan, etc.
The mortgage professionals at First Foundation are educated and trained to provide you with the assistance needed to begin the mortgage application process and to take you to completion, as smoothly as possible.
If you are interested in learning more about mortgage application, please feel free to contact us today!