What is a mortgage application?
The basic purpose of a mortgage
application is helping the lender decide whether to lend money to the borrower
or not. But when you apply for a
mortgage, filling the standard Uniform Residential Loan Application is a
little bit more complicated than that.
There are a total of 5 sections
in the application form and here is a section by section summary of the same,
which will allow you to understand it better.
Section 1: The first section describes the loan program that you
wish to apply for. There are a lot of loan types available like conventional
(Fixed Rate or ARMs), VA, FHA, USDA etc. It is important that you have a
comprehensive discussion with your loan officer to understand which loan type
will suit your financial needs and conditions the best.
Section 2:
This section of an offline or online
mortgage application deals with the property information and purpose of the
loan. If you haven’t yet decided the type of property that you wish to purchase,
parts of this section will be checked as “to be determined.” The other info
that you need to fill in this section includes, who will own the house, how the
title will be held and the source of down payment.
Section 3: This section deals with your personal information, which
includes your and the co-borrower’s full name, birth date, contact details etc.
This section can be easily filled by you without any help.
Section 4: The 4th section of a mortgage application
deals with your employment information and a two year job history with your
present or previous company is the minimum requirement.
Section 5: The final section deals with your financial ability to
repay the mortgage and asks for the details of your monthly income and combined
housing expenses.
Now that you are aware of all the sections of a mortgage application, fill it up here and avail best interest rates on home loans offered by All Western Mortgage.
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